OPINION: Budgeting for a renovation? Remember to price in what you can’t see

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When it comes to home renovations, understanding how to budget practically is one of the main concerns of homeowners in Ontario.  

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In an Ipsos survey of households in the province done for BILD earlier this year, half of respondents indicated how to budget realistically for a renovation was the number one most valuable topic they would like to learn about before planning a home renovation.   

This comes as no surprise to professional renovators as renovation costs can vary widely, making budgeting challenging for many homeowners.  

Fundamentally, before undertaking a renovation, homeowners should understand that not all home renovations are created equally. Homes come in all ages, sizes, underlying conditions, work done to date and systems.  

Even if two homes look similar on the outside and may have even been built by the same builder – they can become two completely different projects once the walls are opened up. These factors can all hugely influence the cost of your renovation. 

Specifically in the Greater Toronto Area (GTA), there are primarily three different broad housing typologies that most residents will be familiar with – there are, of course, many exceptions but a large portion of GTA single family homes would fall into these three buckets. 

There are new homes, which can roughly be defined as anything built after the 1990s. Then there are mid-century homes, which became popular in the 1950s until the early 1970s. Then finally, there are century homes, which are homes that are over 100 years old and have extended their life by a long measure.  

Understanding what type of home you have is the first step to understanding how much you could potentially spend on a renovation.  

For new homes, the likelihood of your project remaining a cosmetic-only renovation is high as these types of homes usually do not have the same underlying plumbing, structural and electrical conditions as century and mid-century homes.  

You will likely spend more of your time and money on the things you can see, rather than the things you cannot see. While unexpected surprises during the renovation process could occur, they are less likely (and usually less costly) with newer homes. 

This, unfortunately, does not remain true for century and mid-century homes.  

If you have a mid-century home – which is quite common in the outer suburbs of Toronto – the most concerning areas during renovation will be the wiring, insulation and mostly-brick construction. This means that if any structural work is undertaken, a contractor will be removing walls and dealing with potential hidden costs behind the walls. 

This is similar to century homes, as any structure over 100 years old may need substantial work to bring it up to date. Think High Park, the Beaches and the inner suburbs of Toronto. 

Century homes can have sagging floors or walls, electrical or water issues and structural problems. Previous work undertaken on century homes can also pose challenges if the work was not done correctly or has become outdated.  

A century home is typically not a candidate for a cosmetic-only renovation as they usually require more significant upgrades than a mid-century or newer home. Renovation projects on century homes can become the most costly for homeowners given the homes age and underlying structure. 

If you are in the early stages of planning your renovation, here are a few considerations and key questions to ask yourself to help make your renovation a success.  

Firstly, understand what you are trying to achieve and if those aspirations align with the ultimate goal of your home. For example, how do you see your home? Is this your forever home, or your good-for-now-home? Will you be retiring in this home or staying in this space for a few years before moving on? Determining the answers to these questions will help you understand how much time (and money) to invest in your home renovation. 

Secondly, renovations can be a long process in addition to possible unexpected delays and surprises. Before undertaking a renovation, ask yourself, how will this project improve my quality of life on a daily basis? What is the emotional reward, not just financial reward, of completing this renovation? Understanding how this renovation will improve your daily life will help guide you through the process.  

Finally, I strongly suggest homeowners speak to a professional renovator if you are contemplating a renovation to your home. Appropriate planning ahead of time and early consultation with a professional could help save you time and money down the line.  

Stay tuned as BILD will be launching a series of informative videos to help home owners budget for different types of renovations across the three broad housing types common in the GTA.  

If you are planning a renovation or budgeting for one, find a RenoMark renovator at https://renomark.ca/find-a-renovator/ to help you plan with confidence.  

Dave Wilkes is President and CEO, Building Industry and Land Development Association. 

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