Renovating During a Recession Makes Good Sense

We all know the housing market isn’t what it used to be, so selling right now isn’t the ideal financial move. But what if you are tired of your space or you’ve outgrown it? What then? Think about renovating - this might include turning a clutter-filled under-utilized basement into a media room, home office/guest room, a play area for the kids, and another washroom. Or if your whole space is dated or just not functioning for you, consider a major renovation. The benefit of doing it all at once is that the space will feel more cohesive and you will save money by utilizing economies of scale (having trades do many projects at once so the overall price is lower). Spending money during a recession might sound counterintuitive but it actually makes good sense. Here’s why:

• Trades aren’t as busy as they’ve been. Good trades are still around, more readily available and will be more willing to work with you on pricing.
• The trades that weren’t that great in the first place are being slowly weeded out, so you’re more likely to find a skilled worker that is more reliable.
• Most material prices are more affordable and you can often find sales – and can negotiate volume discounts (i.e. hardwood flooring).
• You are adding value to your home, and if you plan well you will get back the money you’ve spent when you sell.
• You are creating a space that you, your family and friends can enjoy. This is even more important now that we are going out less and spending more time at home.
• There are government tax credits for creating more energy efficient homes (you must do an energy audit to apply for this) and renovation tax credits.

As well, by spending money we are doing our part to end the recession. Turn off the news and pick up a pencil and paper and start planning.