Se­lect up­grades that add value to your home

The Prince George Citizen - The Citizen - Real Estate Weekly - - Real Estate Weekly -

Pro­tect­ing the re­sale value of your prop­erty is well within your con­trol. Proper main­te­nance and adding nec­es­sary up­grades can mit­i­gate fluc­tu­a­tions in the hous­ing mar­ket and pro­vide the best re­turn on your in­vest­ment.

“The good news in real es­tate is that you can build your home’s value in an ap­pre­ci­at­ing mar­ket and pro­tect it when the hous­ing mar­ket is in decline,” says Lin­coln Thomp­son, bro­ker-owner with Royal LePage Gar­diner Re­alty in Fredericton, New Brunswick.“By mak­ing the right im­prove­ments, you’ll pro­tect the re­sale price through the cy­cle of any hous­ing mar­ket.” Here’s how:

Choose qual­ity ma­te­ri­als for main­te­nance and up­grades. For the long-haul, qual­ity is the sin­gle most im­por­tant fac­tor in ren­o­va­tions and up­grades. In­fe­rior prod­ucts must be re­placed more of­ten, and labour costs rise as cheaper ma­te­ri­als are of­ten more dif­fi­cult to work with. Re­mem­ber, in up­grades, newer isn’t nec­es­sar­ily bet­ter, so try to re­tain the el­e­ments that are worth keep­ing.

Ren­o­vate to the level of your sur­round­ing neigh­bour­hood. Check prop­erty list­ings to de­ter­mine av­er­age mar­ket value of your neigh­bour­hood, or ask your real es­tate agent for an opin­ion. Once you know your home’s po­ten­tial price point, make de­ci­sions about how ex­ten­sive your up­grades should be. Up­grade to a level that is ap­pro­pri­ate to the value of your prop­erty and prop­er­ties within your im­me­di­ate area.

Con­sider all up­grades through­out the home when mak­ing choices on new ones. If you choose to in­stall a high-end bath­room into an oth­er­wise dated home, you may not re­coup its cost. Con­versely, a lower-qual­ity up­grade may dis­ap­point po­ten­tial buy­ers if the ren­o­va­tions are not in keep­ing with those through­out the house. Let your home, as a whole pack­age, guide de­ci­sions on the level of new im­prove­ments.

Con­sider your in­di­vid­ual fi­nan­cial pic­ture. It’s not un­com­mon for home­own­ers to bor­row to make home im­prove­ments. Lower in­ter­est loans for home ren­o­va­tions are of­ten avail­able since lenders view that you are adding value to your real es­tate in­vest­ment. How­ever, if you are bor­row­ing and can’t pay back in a timely fash­ion, then that $30,000 kitchen up­grade may not be wise.

Pre­serv­ing and im­prov­ing the value of your home is within the con­trol of ev­ery home­owner.You can learn more at www. roy­allepage.ca.

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