Getting work done around the house
SURVEY SHOWS AN INCREASE IN HOME RENOVATIONS THIS YEAR ACROSS ALBERTA
Maybe it’s a way of celebrating Canada’s 150th birthday. Or maybe Alberta homeowners are calculating the money they’ll save by avoiding trips to the U.S.
Whatever the reason, a new survey shows more than half of this province’s homeowners are planning upgrades or renovations this year. And Albertans are expecting to spend more than $22,500, the Ipsos study found — about $5,000 higher than the national average.
If renovations cost more than expected, the pollsters say, most Canadians would proceed rather than stopping work. About half of those polled said they would dip further into their wavings, while 15 per cent would take on more debt.
The Ipsos online poll, conducted in May, covered 1,003 Canadian homeowners who said they were at least “somewhat likely” to renovate. The American company says the poll would have been accurate to within 3.5 per cent, plus or minus, 19 times out of 20, “had all Canadian homeowners planning a renovation been polled.”
While Albertans were prepared to spend the most, it found, residents of Saskatchewan and Manitoba were the most frugal. Owners in those two provinces were also the least likely to borrow to pay for the work.
Among Albertans, the survey found about 31 per cent would cancel a vacation or another leisure pursuit to pay for the project, while 33 per cent would be willing to put off retirement.
Another 15 per cent said they would put off another major purchase such as a vehicle.
Pointing out that 27 per cent of Albertans planning a renovation felt they were not saving enough for their retirement, the BDO Canada financial advisors cautioned against over-spending on projects in a real estate market where their costs might not be eventually covered.
The company commissioned the Ipsos poll. Its advice runs counter to some government programs offering rebates to Canadians who take on energy-saving updates.
“Ideally, you want to avoid carrying a large debt balance over several months,” said BDO president Doug Jones. “With interest charged adding up each month, you could be paying back much more than you originally spent.
“We would suggest that Canadians focus on saving for retirement and reducing their existing debt, rather than taking on more debt for home renovations.”
The poll found about onethird of Canadians contemplating a renovation feared unexpected problems would push their costs higher, while 18 per cent were concerned about a sudden change in their financial situation, possibly due to job loss, divorce or health issues.
Seventeen per cent voiced a concern about not getting their investment repaid when they sold their house, while 15 were worried about a collapse in the housing market.