Should you, or shouldn’t you renovate your home? Here are some tips to help you make that decision:
Set Priorities
“First determine your goals,” advises Chartered Accountant Sheldon Wiseman, President, Gistex Inc. in Toronto. “What is your purpose in renovating? To increase the value before you sell? To make your house more liveable? To improve the aesthetics? Work together with your spouse or partner to decide what you want.”
Chartered Accountant Kristine Sanders, Partner, Robinson & Company LLP in Guelph says that identifying your priorities will help you develop an overall plan. “Renovations never happen as quickly as you’d like so a plan is essential. It’s also important to be fluid and flexible because a huge learning curve is involved.”
Do Your Research and Consult Experts
“Depending on your budget, professionals with the expertise you need will include architects, designers and building contractors,” explains Wiseman.
Sanders (a self-confessed, do-it-yourself renovator) suggests other avenues such as home building stores, books and the Internet. “It all depends on what you are renovating. By doing it yourself, you can make home improvements that you couldn’t afford otherwise. You’ll still want an expert on hand, perhaps a friend with building expertise.”
Have a Budget and a Building Contract
“Renovation costs can easily escalate so itemize each cost and put your numbers on paper to see what your budget will allow,” continues Sanders. “Then add as much as 20 per cent to cover contingencies. Before proceeding, obtain three quotes and references, which you should always check along with the contractor’s other projects. Include a payment schedule in your building contract, and verify specific costs with your contractor.”
Know Your Contractor
“Make sure you like your contractor,” Wiseman says. “You are not buying a generic product, so find a contractor whose judgment you respect and whom you can work with in stressful situations.”
Have a frank discussion with your contractor right up front – so many financial decisions lie ahead that you want to nail down as much as possible.
Recognize Your Limitations
“Be realistic,” says Sanders. “There are only so many hours in a day, so don’t over-estimate your time and energy. If you have children, have them help out with activities appropriate to their age – renovating can be a family project.”
Monitor Process
“The closer you are to the renovation process, the better you can deal with the inevitable issues and frustrations,” advises Wiseman. “You are watching the renovation as it happens, and there are few products we buy this way. So be prepared.”
For further information, contact a Chartered Accountant.
Brought to you by The Institute of Chartered Accountants of Ontario.
