 |
|
|
|
Home makeover frenzy continues
ROMA LUCIW
Globe and Mail Update
Renovation fervour continues to grip Canadians, with a majority saying they plan to work on their kitchens, bathrooms, basements or decks in the next two years.
A survey of home renovation intentions conducted by Ipsos Reid for the Royal Bank of Canada found that those planning to work on their houses will spend ,982, on average, up 8 from last year.
Seventy per cent of the 2,367 Canadian homeowners who responded to the survey in August said they are planning renovations or home improvements over the next two years, down by 6 per cent from last year.
“Canadians continue to consider any investment in their homes to be a very good investment indeed,” said Catherine Adams, the vice-president of home equity financing for RBC.
The boom in Canada's housing market has fuelled an unprecedented wave of home renovations. Lured by near record-low Canadian interest rates in the last four years, a flood of first-time home buyers and a swath of baby boomers have been taking on major projects, spending more of their paychecks on appliances, decorating, electronics and furniture.
Although a slowdown in the U.S. housing market has raised fears of an economic slowdown in that country, Canadians appear undaunted in their determination to push ahead with home reno projects.
Banks, meanwhile, have made it easier for Canadians to get lines of credit that will give them the cash they need to buy crown moulding or a sleek granite counter.
Canadians are eager to fix up their castles, but the RBC survey found that most don't plan to go into debt to do so. Almost a quarter, 71 per cent, said they would use cash or savings to pay for all or most of the work. Among those who don't have the cash on-hand, 38 per cent said they would use lines of credit and 26 per cent planned to put it on their credit cards.
The RBC survey found that establishing — and sticking to — realistic reno budgets was a problem. Although roughly two-thirds of people had a budget when they renovated, four in ten survey respondents said they ended up exceeding it by an average 88 per cent.
Among the headaches homeowners have run into, 44 per cent of respondents said they were frustrated by the time it took to finish the project. A third of respondents said the inconvenience was the biggest hassle, while others cited costs, dealing with contractors and trades people, and the quality of the workmanship as issues they had to deal with.
Only 3 per cent of respondents said getting the financing was the biggest renovation headache.
Painting, staining and caulking were listed by almost half of those surveyed as the most popular home improvement project, followed by floors, windows, roofing and fencing.
The most common renos Canadians are planning to tackle are the bathroom, kitchen, basement, landscaping and the outdoor deck/patio. None of the respondents are planning on removing walls.
The survey results suggest the wave of renovations are not being driven by necessity, but rather by the desire to beautify living spaces. Roughly two-thirds, 60 per cent, of respondents said they were undertaking projects to make their home more attractive, well above the 25 per cent who said they were doing so for safety and maintenance reasons. Another 17 per cent cited increasing the value of their home and 7 per cent said it would make it easier for them to sell it. Only 8 per cent said they were renovating because they need more space.
Half of renovators are planning to do the work themselves while 40 per cent will use a contractor, the survey found. A smaller amount of people, 15 per cent, will rely on family, while 10 per cent will rely on friends to get the work done.
The survey also asked people where they get their inspiration from or ideas for home renovation. Many respondents, 44 per cent, said they turned to so-called big box stores (such as Home Depot Inc. or Rona Inc.), 39 per cent looked at magazines, 35 per cent looked at friends' homes or homes in their neighbourhood, and 29 per cent looked to televised home improvement shows and specialty stores.
Source: Globe and Mail |
|
|
