While the U.S. Census Bureau no longer gathers statistics specifically focused on home renovations, up in chilly Canada yearly stats are published on what’s happening in the world of remodelling, compiled by the Canadian Mortgage and Housing Corporation (CMHC).

Usually, what’s happening in America is happening in Canada—economically speaking. Usually, but not always; it seems like Canada is charting its own future these days. Unlike American builders and renovators, which have taken a hit since the economic slowdown and credit crisis began, Canadian contractors are doing well.

In 2007, Canadians spent close to $19.7 billion on home renovations—about 37 per cent of households across 10 major cities from Vancouver to St. John’s, N.L., according to the recently released CMHC Renovation and Home Purchase Report. An estimated 1.5 million households completed some form of reno in 2007, and while this number is down slightly from 2006, when 39 per cent of all households renovated, things are not exactly cooling off.

Homeowners across Canada spend an average of $12,800 on renovations in 2007, an increase of more than $1,000 compared to 2006. The highest average amount spent was in Calgary, at $15,600, and increase of $3,000 over 2006. The lowest average for 2007 was Winnipeg, at $7,900, a decline of more than $2,000 from 2006.

Statistics Canada divides home renovations into two categories: improvement/alteration, which refers to work done to increase the enjoyment or value of the home, such as a deck or addition; and repair/maintenance, a renovation undertaken to keep the home in working order. According to the CMHC report, 59 per cent of households renovated for improvement, 48 for repair or maintenance, seven per cent to add more space and five per cent to make their home more energy efficient.

More stats: 31 per cent of renovating households remodelled a room, followed by painting/wallpapering and flooring/carpeting, at about 27 per cent. In Ottawa and Edmonton, 20 per cent of all reno projects in 2007 involved some type of major landscaping or exterior addition, including patios, swimming pools and outdoor kitchens.

Canadians and Americans are different. For every similarity—our love/hate relationship with Celine Dion; our affinity for televised sports, with regional differences, of course — there are differences that clearly make each country separate. And I’m not just talking about Canada’s love for Clamato and the ongoing love affair Americans have with spray cheese. Gross.

But the real difference between America and Canada, at least as far as this blog is concerned, concerns the White House and 24 Sussex Drive. Don’t know what “24 Sussex Drive” is? That’s my point.

This past weekend, the Canadian media reported on the decrepit state of Prime Minister Steve Harper’s abode, pointing out that the 34-room house, built in 1866, is in desperate need of a reno—to the tune of $10 million.

At stake: who will pay for the renos and where will Steve and his family live during the repairs, which include replacing old windows, removing asbestos and installing a sprinkler system. They’re looking at a 12- to 15-month project, and that’s assuming that the subcontractors show up on time.

I simply cannot imagine the White House undergoing such prolonged and publicly debated scrutiny over when and how the “official residence” will be brought up to date; it’s not that the White House has never been renovated—it has, many times—but that Canadian leaders have historically lacked the political will and wallets to authorize big-budget renovations, let alone the cosmetic changes brought in by U.S. presidents and (likely) future leaders.

Of course, all this pales in comparison to the reno headaches suffered by other world leaders. Former Czech president Václav Havel writes in his memoir, To the Castle and Back, about concerns with the Castle’s garden hose, which needs to be lengthened, and the bat inhabiting the vacuum-cleaner closet, all while trying to run a newly democratic country. Talk about gaining perspective.

Sometimes I think Canada suffers from too much democracy; as in, too much debate over how and when things need to get fixed. It’s why there is an excessive number of elections, and a state house in need of the Holmes treatment. In the States, on the other hand, the chain of command means things get done ASAP, which is good when it comes to renos, but not as good when it comes to foreign policy.

No, we’re not the same. But that’s what makes us friends.

Most of us—Tom and Katie, if you’re reading this, skip to next blog posting—care about our home’s resale value, even if we’re not planning to move anytime soon. We renovate for more space, to update appearances and to increase the value of the house. With the proliferation of home reno TV shows and magazines, homeowners are renovating more than ever before, fixing up rather than selling. Canadians spent $9.2 billion on renos in the first quarter of 2007, an increase of more than eight per cent over last year, according to Statistics Canada, with similar growth in the U.S.

When it comes to return on investment, not all renos are created equal. Some huge investments (installing a swimming pool, for example) curry zero ROI, while seemingly simple and inexpensive quick-fixes (painting kitchen cupboards) instantly up the ante when it comes to resale value. According to the Royal LePage Renovations and Returns Survey, released this week, the top three ROI renos are interior painting, installing hardwood flooring and kitchen upgrades.

The survey ranked renos according to approximate cost and approximate ROI, grouping projects by DIY and jobs that likely require professional help. In the DIY category, painting the interior ($1,000) curries a 50 to 100 per cent ROI; replacing carpeting with laminate ($2,000) is 50 to 75 per cent ROI; and installing new light fixtures ($2,000) has about 60 to 70 per cent ROI.

In the professional section, installing an additional bathroom on the main floor (less than $5,000) has a staggering 80 to 100 per cent ROI; renovating existing bathrooms ($6,500) equals 75 to 100 ROI; and a kitchen reno ($13,500) offers the same 75 to 100 per cent ROI.

The survey outlines 11 upgrades, from simple to complex, that will increase your home’s value. You can read the details yourself here.

Of course, Royal LePage isn’t the first organization to look at home renos and ROI; the web offers an abundance of surveys, some more applicable than others depending on location and climate. Here is a small assortment:

Kitchen design blogger Laurie Burke has a great post on her page, talking about Fidelity National’s Cyberhomes site that allows you to check ROI according to your zip code. You can discover, for example, that if you live within, say, 10 miles of Matt Damon in South Beach, Florida, and you decide to renovate an existing bathroom, the $6,500 spent will increase your home’s value by $8,765. Not bad at all.

Utah blogger Chris Pearson outlines the top 3 rooms to invest in here. He also warns against “over-improving” your home to the point where it doesn’t fit in with the neighborhood and is actually hard to sell. Neverland Ranch, anyone?

CNN warns us that some renos actually lower your home’s resale value. Swimming pools, boxy additions and trendy finishes or fixtures like a 40-jet, Eliot Spitzer-worthy hot tub, are costly to install, have low ROI and might just have your neighbours thinking you never left 1974.

Back in the 1950s, homeowners were inundated with ads, like this one, depicting pretty housewives using state-of-the-art home appliances. The home became a symbol of post-war affluence modernized with dishwashers, dryers, ovens, vacuums and other timesavers promising to make life easier. Those were the days … days of inefficient, energy-guzzling machines. We’ve come a long way, baby. Demand for energy-efficient appliances has increased, which means prices have dropped on once-costly items such as high-efficiency furnaces.

So, how do you tell the good from the gimmick when it comes to green appliances? In North America, the easiest way to guarantee you’re buying an efficient, third-party-verified machine is to look for the Energy Star label. Energy Star is an internationally recognized rating system that tests products for energy efficiency. Products range from building materials (windows, doors, insulation, ventilation) to appliances to lighting. Some states and provinces offer rebates for Energy Star purchases.

Outdoor Green Gear

Of course, green appliances aren’t only found indoors; preparing for the springtime rush, retailers are now pushing eco-workhorses for the yard. Forget gas-guzzling mowers; Solaris’s cordless, solar-powered mower can cut up to 10,000 square feet on one battery charge. Simply mount the solar panel on your shed’s roof and get cutting. Retail value: $569.

Black & Decker allows you to mow and mulch–leaving behind grass clippings (rather than bagging and composting) that function as lawn fertilizer and reduce the need to water–with their Cordless Mulching Mower, which runs on a rechargeable 24-volt battery. Retail value: $500.

Black & Decker also makes other cordless yard tools such as hedge trimmers (about $100) and tree pruners (same price).

Super-recycler TerraCycle Inc. sells oak rain barrels for collecting rainwater for watering plants, lawns, and so on. Simply place the barrel under your gutter’s downspout and turn April’s showers in May’s flowers. Retail value: $150.

Of course, this is just a small sampling of green appliances for your home. Virtually every home category is jammed with green products, so look for the Energy Star label and read the fine print. You can find the products above at the Home Depot, and other large retailers across the continent.

Five years ago, “green” renovating meant three things: increased costs, questionable quality and searching through pages and pages of contractor listings till, eventually, you found a contractor knowledgeable about green building that didn’t also charge the moon. It wasn’t easy being green, but that was then and this is now.

Today, none of these statements ring true: green building materials have increased in quality while decreasing in cost as consumer demand for environmental products and systems keeps climbing. What’s more, environmentally responsible products save you money over the long haul because of increased efficiency and longer life spans; it may cost you slightly more upfront, but you’ll quickly earn back your investment while also upping the resale value of your home.

But don’t just take our word for it. Even Wall Street, traditionally weary of any shade of green other than the dollar bill, agrees: green building is both responsible from an ecological perspective, but also beneficial from an investor’s point of view. Investor website TheStreet.com takes a look at green building from a cost/benefit point of view.

Similarly, CNN’s Money Magazine takes a hard look at green reno costs and return on investment.

Incentives

Still not convinced green renos suit your budget? Well, perhaps the state can help change your mind. Governments across North America are trying to cut back on energy and water consumption, so it’s in their best interest to entice homeowners to go green, which means a plethora of grants, incentives and rebates. American rebates take the form of everything from tax breaks to grant programs, while the Canadian version is pushing energy audits various government rebate programs.

Up next in Part 2 of Green Your Home: the health benefits of green renovation

More people are killed or injured in fires than all the burglaries of homes or businesses combined. Smoke & soot damage will consume every square inch of your home. I had a neighbour who had a fire and clothes packed in suitcases still got damaged with soot. They were far removed from the actual fire. So it is important to add fire protection to your security system.

Most smoke detectors security alarm companies use is different than the ones sold in hardware stores. They measure the quality of the air electronically. They usually can detect a fire as opposed to fumes using this method is much better. When a fire is detected, the fire department is notified even sometimes before you the home owner know you have a fire. The internal siren in the home alerts your family of the fire. Most alarm systems give intermittent short blasts if there is a fire as opposed to a steady sound of the siren. This also lets you know even in a deep sleep that when the siren goes off, you know it’s a fire instead of a break-in.

It is important where you place these devices. Some cities have codes stating you have to have one for each bedroom. Most of the time they are installed in a common hallway outside of the bedrooms.

Another device is called a heat rise or heat sensor. Most of these devices operate sensing the heat of the air surrounding them. There are two kinds. The first device will detect a fire if the heat rises to a certain temperature. The other device will activate if there is a sudden change of temperature from a certain degree to another.

These devices are placed in areas like kitchens, garages, attics, basements near the furnace, utility rooms, and any where you have a heater or flammable materials.

Every family should have a fire drill every so often. Each member of the family should know all exits. Have a place where you meet outside, like at the mail box, so you know everyone has gotten out. Many people have lost their lives going back into a burning home thinking that someone is still in the home when actually they were out but on the other side of the home.

Keep in mind that most insurance companies give discounts if you have a security system installed in your home or business. The more levels of protection could mean a greater discount on your insurance. So an investment in a complete security system could mean a substantial savings over the years plus the “peace of mind” knowing you’re protected.

Get a FREE* ADT Alarm System worth over $850, with a $99* installation fee, and $ 0 activation fee, 24/7 Immediate Emergency Medical, Police and Fire Response, 2 Way Voice Enabled Control Centre and much more. Please visit: http://www.apexdirect.ca/promos/3 to get a FREE, no obligation Life Safety System quote or call us at 1 888 496 9488

Finding a good contractor need not be an impossible challenge, here are some great tips to help locate a great contractor, the questions to ask, and other valuable information.

How to Locate a Great Contractor
If you are thinking about renovating your home, you may have a style that prefer. Drive around a few neighbourhoods to see what you like, you may seen several signs for contractors in the area.
The HomeRenovationGuide can provide you with great contractors that service your area, and you can see their portfolios online.
If you know a reliable trades person such as a plumber, or electrician, ask them if they have worked with someone they would recommend.

Questions to Ask
Are they bonded, licensed, insured, and covered by workers’ compensation insurance?
What is the time line of your project. Start dates, completion dates, any pauses between phases if the project is large?
Have them provide you with a quote that is detailed so you can review and inquire about charges that you are not clear on.

Money / Payment
What is the rate? (smaller projects)
What is the total cost (larger projects) and what is included. Some companies bill only for hours and you pay the material costs direct, others will build in the materials cost. Be sure you know what you are getting so you can accurately compare.
What is the payment schedule? Some require a deposit so make sure you are informed before you agree.

Other Tips to Remember
Trust your instincts. Personal fit is important; depending on the size of your project you can be face to face with this person for several months.
A good contractor will ask you as many questions as you ask them. This is a great indication that they care about your project and want to ensure you are happy, so be open and let them know your bottom line and what you must have and what you dislike.

The ecoENERGY Retrofit program is open to all Canadian homeowners renovating to be more energy efficient.

Things to know about the program:

• Homeowners can receive a rebate of up to $5,000 for improving their home.
• You have to pay $295 to have someone come into your home to assess it before you renovate, and an additional $150 to have them come back after the renovations are complete.
• Some provinces will send you an instant rebate of up to $150 after the first assessment to subsidize some of the cost.
• The average homeowner receives $1600 in rebates
• By following the recommendations of the advisor, you can help lower your house’s emissions by up to one-half. Homes are one of the major producers of greenhouse gas emissions in Canada.
• All advisers must be impartial — be careful of those that come into your home and try to up-sell you.
• Homeowners can choose what to upgrade based on their adviser’s recommendations, their budgets, and what has the most payback.

posted by Nikki Rollins
nrollins@homerenovationguide.com

Recently we heard from a new homeowner who thought they knew exactly what they were buying after having the house fully inspected by a home inspector. To their surprise, when they called in a contractor to do some renovations, the contractor found numerous errors and mistakes made by the home inspector.

Sadly, the house is going to be much expensive to renovate than was initially budgeted for.

In this blog entry, we try to give you some things to think about during a home inspection.

1. Seasonality of Inspection - When you have a home inspected prior to purchase, consider the season that the home inspector is working in . For example, if it is winter and the roof is covered in snow, how can the inspector properly judge the quality of the roof ? If this is the case, try and get documentation from the homeowner on the condition of the roof, the warranty, and the last time the roof was worked on.

2. Knob and Tube Wiring - It is very difficult for a home inspector to determine the extent of knob-and-tube wiring in a house. Often, you will get an estimate percentage from the inspector. Since the inspector can’t rip out the walls and actually see the knob and tube, their determination is made based on the plugs and switches.

3. Hiding the house’s faults - As a home inspector’s visit to your house is brief, often they can miss things that have been hidden from the inspection. A common example of this is when homeowners paint their foundation walls to hide mold and leaking.

4. Home inspection liability limitations - Remember that the inspector is not liable for missed items during an inspection. They are only liable for the amount of the actual cost of the inspection, so before you agree to the results of their inspection, make sure there isn’t anything you think they’ve missed .

5. Insulation in the Attic - This is one area often missed in an inspection. Due to the difficulty of getting into the attic, the volume, type and quality of the attic insulation is often not included on an inspection.

So what is the end result? Home inspection services are very useful and can give the homeowner peace of mind when making a decision on buying a home. However, given the nature of the job, it is important to choose a home inspector with experience, not just the cheapest one. There are some really great home inspection companies out there to choose from. Please try to keep in mind some of these lessons during an inspection.

For more information on home improvement visit The Home Renovation Guide - http://www.homerenovationguide.com - The complete guide to home renovation.

With the City of Toronto beginning its public consultations on potential new taxes, Toronto realtors are hoping that Mayor Miller and City Council will heed their advice: do not impose a home-buying tax.

Public meetings are an opportunity for Toronto residents and businesses to tell the City what they think of various new taxes that are being considered. These proposals were announced less than two months ago, and the City’s Executive Committee could make decisions on them next month.

Possibly the biggest tax that could be levied by the City would be a second land transfer tax, paid by homebuyers on top of the existing provincial land transfer tax. A second land transfer tax of as little as 0.5 per cent would mean that average Toronto homebuyers would have to come up with close to $2,000 extra when buying a home, a 45 per cent increase in the land transfer taxes that they already pay.

‘We appreciate any opportunity to inform the City about how misguided a Toronto home-buying tax is, but this issue is too serious to wait for the City’s formal public meetings to start. As soon as realtors found out about the proposed home buying tax, they started contacting the Mayor and City Councillors directly to tell them to shelve this crazy idea. Hundreds of realtors, that we are aware of, have already sent emails to the Mayor and City Councillors,’ said Dorothy Mason, President of the Toronto Real Estate Board (TREB).

‘Not just realtors have been speaking out against this tax. As soon as their clients, the general public, found out about this they are shocked that the City would even think about this. Many of them are letting TREB know about their concerns at the same time that they send them to the City, and from what we have seen, it’s clear that the public is very concerned about a Toronto homebuying tax,’ said Mason.

The concerns that realtors and the public have been expressing are numerous. Specifically, they have told the City that a homebuying tax would hurt homebuyers, home sellers, businesses, the economy, and the environment (Excerpts from realtor and public correspondence provided below).

‘A home-buying tax would hurt those who can least afford it the most. Many homebuyers already have to heavily finance their home purchase to be able to live in Toronto. If they have to find another $2,000, or more, for this tax, they will end up having less money for a down payment, which will mean a bigger mortgage, over $1,700 in extra mortgage interest, and possibly more mortgage insurance costs. For a homebuyer of an average Toronto property that could only afford a five per cent down payment, the Toronto home-buying tax could ultimately end up costing them over $11,000 in added costs when mortgage insurance and interest are considered,’ said Mason.

‘The unfortunate thing is that, at the end of the day, a Toronto home buying tax could mean less, not more, revenue for the City because less demand for Toronto housing will mean less property assessment growth, which would mean less property tax revenue for the City,’ added Mason.

Until recently, the City has only been allowed to levy property taxes.

‘These are unprecedented decisions that the Mayor and City Council are making, so the last thing they should be doing is rushing, but that is exactly what they are doing. The City needs to make sure that it takes the time to fully understand the ramifications of a homebuying tax,’ said Mason

*Courtesy of the Toronto Real Estate Board - Make the Right Move - Consult a Toronto Real Estate Board REALTOR

Chris Paulsen
cpaulsen@homerenovationguide.com