One rule seems to apply in all cases: avoid projects that will set your house apart from other properties in your neighbourhood.
The Appraisal Institute of Canada posts this warning on its website: "If the value of your house exceeds the average market value in your neighbourhood, your renovations will not yield much return. But if your house value is below the average, you can recover a larger part of the renovation costs."
Also bear in mind that the amount spent on renovation projects should be relative to the value of the dwelling: A $30,000 remodelled bathroom does not belong in a $100,000 house.
SEVEN hot home-improvement trends - Home theatre - Hardwood floor in kitchen - Laundry room on main floor - Whirlpool bath - Built-in kitchen appliances - Office on the ground floor - Kitchen island
Percentage recovered upon resale Kitchen upgrade: 75% to 100% Bathroom upgrade: 75% to 100% Interior painting: 50% to 100% Roof replacement: 50% to 80% Replacement of furnace or heating system: 50% to 80% Expansion (addition of family room): 50% to 75% Doors and windows: 50% to 75% Deck: 50% to 75% Installation of hardwood floor: 50% to 75% Construction of a garage: 50% to 75% Fireplace (wood or gas) 50% to 75% Central air conditioning: 50% to 75% Finished basement: 50% to 75% Wood fence: 25% to 50% Interlocking paving stones on driveway: 25% to 50% Landscaping: 25% to 50% Asphalt driveway: 20% to 50% Pool: 10% to 40% Skylights: 0% to 25%
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