We are often asked by homeowners about the potential return on investment that can be expected on a renovation project that they are considering.
According to the Appraisal Institute of Canada (AIC) the payback varies depending upon the project.

While these numbers are interesting, it is important to keep in mind that they are only relevant if you are renovating just prior to selling your home. If you are renovating to improve the liveability and/or enjoyment of your home you will want to take a different look at the situation. How much is enjoyment worth? Only you can decide on that Return on Investment.

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The Appraisal Institute of Canada (AIC) has developed RENOVA, an interactive web-based guide to the value of home improvements. It is designed to give consumers a better idea of the return on investment they can expect for a variety of home improvements.

According to the AIC website, these items are among the best Return on Investment:

Bathroom Renovation    RIO: 75% - 100%
Kitchen Renovation    RIO: 75% - 100%
Exterior Paint    RIO: 50% - 100%
Interior Paint    RIO: 50% - 100%
Basement Renovation    RIO: 50% - 75%
Recreation Room Addition    RIO: 50% - 75%
Install a Fireplace    RIO: 50% - 75%
Flooring Upgrade    RIO: 50% - 75%
Furnace/Heating System Upgrade    RIO: 50% - 75%
Window/Door Replacement    RIO: 50% - 75%
Construct A Garage    RIO: 50% - 75%
Exterior Siding    RIO: 50% - 75%

These items are among the lowest Return on Investment:

Landscaping    RIO: 25% - 50%
Build a Fence    RIO: 25% - 50%
Interlocking Paving    RIO: 25% - 50%
Asphalt Paving    RIO: 25% - 50%
Install Home Theatre Room    RIO: 25% - 50%
Interlocking Brick (Walkways)    RIO: 25% - 50%
Installing a Whirlpool Tub    RIO: 0% - 50%
Install A Swimming Pool    RIO: 0% - 25%
Install a Skylight    RIO: 0% - 25%

You can find the Appraisal Institute of Canada's  RENOVA interactive web-based guide to the value of home improvements here.

You should be aware that RENOVA is a guide, which provides ranges. Home values and returns on renovation investments are dependent on so many factors such as the location of the property, i.e. province, rural/urban, the neighbourhood and notably important is the quality of workmanship and materials.

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