HGTV's Scott McGillivray offers advice on keeping your renovation budget
in check
TORONTO, April 22, 2013 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) Poll
conducted by Harris/Decima reveals more than one-third of Canadian
homeowners plan to take on some form of home renovation project this
year, with an average expected renovation cost of just over $15,000.
Highlights of the poll include:
-
$15,300 is the amount Canadian homeowners say they will spend on their home
renovations this year, on average
-
39 per cent of Canadian homeowners say they plan to renovate their home in the next
12 months
-
Among Canadian homeowners planning to renovate, Alberta homeowners plan
to spend the most on their home renovations this year ($22,900 on average), while Atlantic Canadians say they plan to spend among the
least ($11,000 on average)
-
Regionally, Alberta residents are among the most likely (52 per cent) to say they plan to renovate their home in the next 12 months, while
British Columbians are among the least likely with only 25 per cent of home owners saying they plan to renovate
-
Among demographics, Canadians aged 45-54 plan to spend among the most on
their home renovations this year ($18,300 on average), nearly $3,000 more than the national average
"Whether it's replacing an old roof or updating a kitchen, home
renovations can help you get more out of your property, but you do need
to consider how the costs will fit with your overall financial plan,"
said Colette Delaney, Executive Vice President of Mortgage, Lending,
Insurance and Deposit Products, CIBC.
Previous CIBC research shows that Canadians named paying down debt as
their top financial priority for 2013, suggesting that those Canadians
taking on a home renovation will need to keep a close eye on their
renovation budget to stay on track towards their financial goals.
"Most people taking on a renovation have a clear vision of how they want
their home to look when it's done. Our message is you need the same
clear plan for repaying any debt you might incur along the way," added
Ms. Delaney.
HGTV's Scott McGillivray Notes that Planning is Key to a Successful
Renovation
Scott McGillivray, host of HGTV's "Income Property", also stressed the
benefits of planning when it comes to making improvements to your home
while managing your budget.
"The most important part of a renovation is the planning. It sounds
cliché, but planning really is half the battle. In my experience, the
homeowners who plan ahead are also more likely to be happy with the end
result, and are better at sticking to their budget."
For Canadians looking to stretch their renovation budget, it's important
to prioritize your renovations by mapping out where you are going to
invest within your home, and how much money you will need to allocate
to each job.
"Kitchens and bathrooms are always value-adds, so if you're prioritizing
your renovations and looking to make your dollars go further, plan on
doing those rooms first," added Mr. McGillivray "I also like to add an
income suite in where possible, but that's a personal choice."
Renovation Tips from Scott McGillivray:
To make sure you stick to your renovation budget, while getting the
greatest return on your investment, Mr. McGillivray offers the
following tips:
-
Plan the Work: You don't want to be in the middle of a home renovation project when
you realize you are unable to meet your timeline or budget, especially
if you are operating with a tight budget.
-
Set your Priorities: If you are taking on multiple renovations, decide which ones are the
most important to you, and tackle those first. Kitchens and bathrooms
make good choices for a renovation because of the potential to add
value to your home.
-
Expect the Unexpected: Regardless of how much you plan in advance, leave a cushion in your
budget for the unexpected. You should aim to have a cushion of 20 per
cent to over any unexpected costs.
-
Get it in Writing: You should always get quotes from contractors before any work starts,
have a signed agreement on the scope of work they will be doing and
everything that's included. You also need to be clear on what's not
included so that you'll know about any expenses that will be your
responsibility.
Financing Advice from CIBC:
To help fund their home renovation, CIBC offers the following tips:
-
Draw on Savings - if you are able to draw on savings to fund part or all of your
renovation, it may be the best option. Be sure to leave yourself some
emergency funds in your savings account so that you still have a
cushion against other unexpected expenses that can arise.
-
Choose a Low Cost Borrowing Option:
-
A secured line of credit, like CIBC's Home Power Plan, offers Canadians
with equity in their homes a low cost borrowing solution that can be
used to finance expenses such as home improvements. CIBC's Home Power
Plan provides Canadians the fixed payment schedule of a mortgage with
the flexibility of a line or credit, and the ability to access the
funds whenever you need them, should you need to make a future repair
or in the event of an emergency.
-
An Unsecured Line of Credit (UPLC) is another option that can be used to
finance home renovations. An Unsecured Line of Credit represents a
good option for borrowing of smaller amounts with a plan in place to
repay the amount owing.
KEY POLL FINDINGS
On average, amount Canadians homeowners planning to renovate say they
will spend on their home renovations in the next year, by region:
National
|
$15,300
|
Atlantic Canada
|
$11,000
|
Quebec
|
$13,100
|
Ontario
|
$13,000
|
Manitoba and Saskatchewan
|
$20,400
|
Alberta
|
$22,000
|
British Columbia
|
$19,000
|
Percentage of Canadians who say they plan to renovate in the next 12
months, by region:
National
|
39%
|
Atlantic Canada
|
39%
|
Quebec
|
42%
|
Ontario
|
40%
|
Manitoba and Saskatchewan
|
37%
|
Alberta
|
52%
|
British Columbia
|
25%
|
*Each week, Harris/Decima interviews just over 1000 Canadians through
teleVox, the company's national telephone omnibus survey. These data
were gathered in a sample of 1,006 Canadians between January 24 - 28,
2013. A sample of this size has a National margin of error of +/-3.1%,
19 times out of 20
CIBC is a leading North American financial institution with nearly 11
million personal banking and business clients. CIBC offers a full range
of products and services through its comprehensive electronic banking
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United States and around the world. You can find other news releases
and information about CIBC in our Press Centre on our corporate website
at www.cibc.com
SOURCE: CIBC
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Kevin Dove, Communications & Public Affairs, CIBC 416-980-8835 or Kevin.dove@cibc.ca