Canadian Finance BlogRenovations – Canadian Finance Blog

Owning A Home – Be Prepared For The Expenses

Tom Drake — Mon, 01 Nov 2010 09:00:02 +0000

Owning a home can be an empowering feeling and is certainly a major step towards financial independence and retirement. But it’s important to consider all the expenses of owning a home, not just the mortgage itself.

For example, your heating costs will increase, or maybe at some point you may need to renovate your house, you may even need to find a 24 hour plumber. Plus you’ll need home insurance and a security system to help protect your investment in your home.

For more ideas on some of the expenses you can expect and some ways to save money, have a look at this infographic created by GoBankingRates. (click image to enlarge)

Find the best bank rates at GoBankingRates.com.

Owning A Home – Be Prepared For The Expenses originally appeared on Canadian Finance Blog on November 1, 2010.

Less is More: Cheap Home Upgrades that Offer a Big Payoff

Guest — Thu, 08 Jul 2010 09:00:38 +0000

There are plenty of reasons to upgrade your home. You may want to replace ugly or outdated cosmetic features, design a space that better suits your needs, or simply add to the value of your home. Whatever the reasoning, you couldn’t pick a better time than right now to start. While you may be concerned about spending money on something that could be considered frivolous in our current economy, you are in fact taking advantage of some of the best deals on products and services in decades. With the housing boom slowing down, retailers and labourers alike are offering stellar materials at rock bottom prices, so taking advantage of a buyer’s market is definitely in your best interest if you are considering some upgrades to your home.

But which ones will offer the best payoff for the least expenditure? Well, you certainly can’t go wrong by slapping a fresh coat of paint on the walls. It’s a cheap home upgrade that will make your home look fresh without spending a lot of money. However, this won’t add much value to your home. You can also consider new flooring. Between carpeting and inexpensive options like wood-mimicking laminates you can really give your tired interior a face lift. Again, it will not add much value in the long run (since most buyers will ask for discounts to replace paint and flooring), but if it’s for your enjoyment, you should definitely consider it.

Upgrades that will boost your ultimate sale price are best done in kitchens and bathrooms, but let’s face it, they can be a little pricey. However, they will guarantee the best return on investment. And fortunately, there are a lot of less expensive alternatives to recreating the space you saw in the model home. To begin, think about using the re-usable. Although tiling (for countertops and backsplashes) is already pretty cost-effective, you can get it for even less if you buy recycled. Often, you can find better products at lower prices by going this route. You can also look into reclaimed cabinetry if you find you must replace your existing cupboards. However, if your cabinets are structurally sound and meet your needs, you are better off just painting over or adding new veneers (and hardware) to cut costs. And energy-star appliances, while carrying a hefty price tag, can save you money through government incentive programs, in addition to reducing your electricity bill.

In terms of bathrooms, a little can go a long way. There are a few inexpensive options for jet tubs and such (although upkeep can be a problem), but you may want to leave your existing tub if it’s nice. You’d do better to spend less and replace a few key items like hardware, lighting fixtures, and a stained or chipped sink. You can also consider a low-flow toilet since they often come with a rebate from the utility company and they’ll reduce your water bill.

While you may be keen to gut the house and get everything new, you’ll find that even cheap materials can quickly add up to a monster price tag, blowing your entire budget before you even start installation. So create a plan of action before you begin and make a concentrated effort to stick to it and avoid getting sidetracked by unnecessary extras. In the long run, a solid plan for remodelling can mean the difference between disastrous debt and a big payoff.

Bio: Kathleen Macky owns a real estate website where you can browse Wesley Chapel homes for sale.

Less is More: Cheap Home Upgrades that Offer a Big Payoff originally appeared on Canadian Finance Blog on July 8, 2010.

How To Improve Your Home Security

Tom Drake — Mon, 25 Jan 2010 10:00:55 +0000

While home insurance can help protect you from the financial loss of a home break in and theft, the best way to protect your family and possessions is to have your house properly secured and set up to be a deterrent to thieves.

Your first line of defense is to have looks that are not easily picked, drilled or kicked in. The lock should have a 1-inch deadbolt and be installed with 3-inch screws. Properly lock all doors leading into the house, including doors for accessing the garage from the outside and the door inside the garage that allows entry to the house.

The next choice of burglars wanting to enter your house is often through the windows. Windows near doors, or located somewhere easy to climb through, can be reinforced with security film. You can prevent entry into basement windows by installing steel gates that lock. Keep the key for the gates in the basement, in a location that all family members are aware of in case of an emergency where someone needs to escape through the window.

With the entry points secured, you should now focus on deterring thieves with motion detector lights (especially in the backyard) and careful landscaping. Make sure that no bushes or trees would provide a thief with a location where they can be hidden while working on your door or window. Also consider how a burglar can use a patio table or barbecue to reach windows you may have thought were to high to need securing.

Despite all these precautions, the fact remains that if a thief wants to get into your house badly enough, he probably can. You can still have an opportunity to scare him off, as well as notify the police, by having an alarm installed and monitored. Your alarm should include backup power and its own UHF or cellular connection in case either the electricity or telephone line has been disconnected.

Taking these steps now could help to protect your home in the future, as well as your family and valuables inside it.

Image by dickuhne

How To Improve Your Home Security originally appeared on Canadian Finance Blog on January 25, 2010.

Two Weeks Left For The Home Renovation Tax Credit (HRTC)

Tom Drake — Mon, 18 Jan 2010 10:00:55 +0000

Were you thinking of doing some home renovations sometime this year but haven’t decided when to do them? There are two weeks remaining to qualify for the Home Renovation Tax Credit. While this may not be enough time to get a contractor in to finish a job before January 31st, it is still a great opportunity for do-it-yourself renovations.

The Home Renovation Tax Credit provides a 15% tax credit on home renovation expenses over $1,000 and up to $10,000. This maximum of $9,000 equals a tax credit of $1,350. The HRTC is a one time tax credit that was introduced to help encourage spending our way out of the recession. Unfortunately, there has been no mention of continuing this program in the future.

Depending on your comfort level with these projects, simple do-it-yourself renovations could include:

painting
tiling walls or floors
upgrading bathroom or kitchen faucets
building a deck
insulating a basement or garage
laying sod
upgrading light fixtures

Maybe you’re saving up for your renovations later in the year? While normally I wouldn’t recommend taking on debt, I did calculate that if you borrowed for your renovations, the tax credit would not only pay the interest but could put you ahead if paid off soon enough.

Another benefit of getting your renovations done before January 31st is that many retailers like Rona and Home Depot are providing further incentives to renovate if you use their store to get it done.

So if you’re looking to renovate this year, you might want to consider paying for all your materials this month and claiming a credit up to $1,350. After that, you could even store them in your garage and wait until the summer!

Image by skidrd

Two Weeks Left For The Home Renovation Tax Credit (HRTC) originally appeared on Canadian Finance Blog on January 18, 2010.

Rona and Home Depot Provide Further Incentive to Renovate

Tom Drake — Thu, 07 May 2009 11:00:56 +0000

The federal government introduced the Home Renovation Tax Credit as an incentive to Canadians to start renovation projects as a means of providing economic stimulus. Spending the maximum of $10,000 on materials and labour would make you eligible for the full tax credit of $1,350.

Rona has recently started a program called RONAdvantage. With this plan, you must sign up for the Rona Desjardins Visa. You can then track all your purchases until January 31, 2010 and submit a claim form for 10% in Rona gift cards on eligible purchases up to $10,000.

Home Depot is starting a similar program in July called Redemption Tracker. You would need to apply for a Home Depot Consumer Credit Card to track your purchases. Their website says that the The Home Depot Tax Credit Top-Up allows you to earn up to 10% back in Home Depot gift cards on eligible purchases during promotional periods. So this might not be as open as the RONAdvantage plan that’s available over the entire HRTC period.

Comparing the two, it looks like Rona has the superior promotion, its tracking is available now and does not have the “promotional periods” catch. If you were to spend $10,000 on eligible purchases, you would receive $1,000 in Rona gift cards and then receive a tax credit from the CRA for $1,350. Depending on the type of renovations, you may also be eligible for ecoENERGY Retrofit grants.

You may also be able to get Home Depot Military Discounts.

Rona and Home Depot Provide Further Incentive to Renovate originally appeared on Canadian Finance Blog on May 7, 2009.

ecoENERGY Retrofit

Tom Drake — Mon, 09 Mar 2009 10:00:04 +0000

A month ago I wrote about borrowing for the Home Renovation Tax Credit (HRTC). There is one further step you can take that would pay that loan off even faster, qualifying for and receiving an ecoENERGY Retrofit grant.

Home owners can qualify for a ecoENERGY Retrofit grant of up to $5,000 by making their homes more energy efficient. This applies to heating, cooling and ventilation systems as well as hot water, toilets, insulation, windows and doors.

First you have to get a residential energy assessment by an NRCan-licensed advisor. They will inspect your house and provide you with an energy evaluation and an efficiency rating. This evaluation will include a list of recommended retrofits that will improve your home’s energy efficiency and shows the grant amounts that you can receive by carrying out these improvements.

The next step is to complete the recommended items you decide to go ahead with. This must be done within 18 months of the pre-retrofit assessment.

Your energy advisor will then perform your post-retrofit evaluation to confirm your new energy rating and will submit your application. You will then receive your money within 90 days!

ecoENERGY Retrofit originally appeared on Canadian Finance Blog on March 9, 2009.

Borrowing for the Home Renovation Tax Credit (HRTC)

Tom Drake — Tue, 10 Feb 2009 12:00:16 +0000

Most people are saying that they wouldn’t borrow money for renovations to make the February 1, 2010 deadline for the Home Renovation Tax Credit (HRTC). The more I look at it, the more it might make sense if you can afford the extra monthly payment and can pay it off within about 6 years.

The HRTC is a 15% credit on money spent for renovations over $1,000 but no more than $10,000. So basically, if you spend $10,000 you get a credit on $9,000, a credit worth $1,350.

Now if you were to borrow $10,000 at 4% for, let’s say, a more common 5 years you would pay $184 a month and it would only cost you $1,050 in interest. Not only could you do your renovation sooner, you’d still come out ahead by $300!

It can get even better. Lets say you borrowed money and did your renovations this summer, got your tax refund nine months later, and put it towards the loan. You would then pay your loan off 8 months earlier and your total interest would only be $820! So now you would be able to do your renovations this summer, instead of putting it off, and after the interest paid, you’d still have $530 of the government’s money towards it!

Borrowing for the Home Renovation Tax Credit (HRTC) originally appeared on Canadian Finance Blog on February 10, 2009.