Making a few small changes, especially outdoors, can do much more than make your home a better backdrop for family portraits. In fact, when done correctly, an outdoor renovation project can deliver a feature you love and increase the value of your home.
This infographic from Williams Ski & Patio shows which outdoor renovations will yield the highest return on investment for homeowners.
For example, replacing the siding on your house is a home renovation project that gives you an 80 percent return on investment, and replacing exterior doors gives you a 101 percent ROI. Replacing your garage doors gives an 88 percent ROI, and paving a gravel driveway can earn a 50-75 percent ROI. Even adding outdoor lighting, a very small change, can give you a 50 percent ROI.
Determining the ROI of decks, patios, and other places to enjoy sitting on outdoor furniture is a little more complex. The average ROI of a professional deck construction is 73 percent; however, this rate tends to be higher for higher-quality wooden decks, and lower for composite materials. Patio additions, meanwhile, have a slightly lower ROI of 30-60 percent. If you have a porch, think carefully before deciding how much to spend to screen it in: spending $35,000 to screen in your porch has an average return of 75 percent, while spending $50,000 only has an average return of 50 percent.
Don’t forget that the value of curb appeal extends to your yard as well; landscaping can add as much as 28 percent to the value of a home in addition to cutting the time a home spends on the market by 10-15 percent. You can strategically plant windbreaks and shade trees that will cut your heating needs by as much as 15 percent and air conditioning needs by as much as 75 percent. Also, make sure that your plants are native to your area in order to save money; maintaining an acre of native plants costs $3,000 over the course of 20 years, while the cost of maintaining non-native turf grass over that same time in $20,000.
In the backyard, outdoor kitchens are becoming very popular and are considered an outdoor room. Adding an outdoor kitchen sees an average ROI of 100-200 percent, but this depends largely on the climate (with higher ROI in warmer areas) and if durable materials are used. Fire pits are also desirable to buyers; a properly styled fire pit can earn an ROI of 150 percent, as long as it’s purchased and installed at a reasonable price.
Pools and other water features are trending downward, and considered by many buyers and real estate agents to be a maintenance chore. Even if the pool is well-maintained, relatively new, and in a warm climate, it will only add an average of 7 percent to the home’s value.
If you don’t have the budget for major home renovations, there are several low cost options for staging your home’s exterior in order to increase its value. Re-sodding your lawn, trimming and weeding your garden, adding flowers to your home’s entrance, sealing your driveway, and adding mature plants to a new garden all cost less than $1,000 (often significantly less), yet each project has an average ROI of up to 200 percent.
Your home may be your castle, but at the end of the day, future buyers will pay more for a castle with a beautifully landscaped front gate and an outdoor kitchen. Investing in outdoor renovation projects today will pay off in the future.
Contributed by Williams Ski & Patio
A sign of spring’s arrival in Canada is a bank making what looks like bold mortgage moves to the uninformed. But within the last (2) weeks, the Bank of Montreal and Toronto-Dominion Bank announced five-year fixed-rate mortgages at 2.79 per cent, while CIBC has been offering a special introductory rate of 1.99 per cent on the first nine months of some fixed-rate mortgages.
Besides rates and penalties, some of the key variables in choosing a mortgage are prepayment privileges, or how much of the mortgage principal you can pay down every year without incurring a cost, and the length of time the lender will hold a mortgage rate for you.
Mortgage prepayment penalties are where alternative lenders really crush the big banks. Lenders calculate these penalties on fixed-rate mortgages as the greater of three months’ interest or what’s known as an interest rate differential, or IRD.
The idea behind the IRD is to compensate a lender for the interest lost when you pay out a mortgage early. Lenders have different ways of calculating the IRD, but you should expect penalties to be as much as three to four times higher at the banks than competing lenders.
If you’re dead certain you’ll stay in a five-year mortgage for five years, maybe your bank’s best deal on rates will suffice. If you want to keep your options open and possibly get a better rate, then working with a mortgage broker is the way to go.
SOURCE: The Globe & Mail