Canadians worried about overspending on renovation projectspar Andrew Rickard | June 27 2016 11:30AM
A recent poll has found that about one in three Canadians plan to renovate or improve their homes this year, although many have not worked out a detailed budget.
The survey of more than 2000 homeowners conducted by Angus Reid for CIBC found that 37% of Canadian homeowners plan to renovate this year, which is down slightly from the 40% who were planning to make home improvements in 2015. On average, respondents expect to spend $13,000 and CIBC says that the area of focus has shifted to the outdoors:
- 42% intend to work on landscaping, including decks and patios (up from 25% in 2015)
- 33% expect to renovate bathrooms (down from 40% in 2015)
- 26% plan to update kitchens (down from 31% in 2015)
Although 52% of homeowners say they are worried that they may overspend on these projects, the poll reveals that only a third (34%) have come up with a renovation budget.
"Whether you hire a contractor or do it yourself, you should have a good understanding of how much your project will cost and build in a contingency for potential overruns or surprises," says Barry Gollom, vice president of mortgages and lending at CIBC. "It's critical to stay on budget as it is easy to lose control of your spending if you don't have a detailed and comprehensive plan."