Renovations That Increase Your Home Value | Quebec

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Profitable renovations: maximizing your property's value

When investing in renovations, it is crucial to distinguish between projects that genuinely increase your property's market value and those that simply improve your daily comfort. This distinction is particularly important if you plan to finance the work through your mortgage, as the goal is for the added value to offset or exceed the cost of additional borrowing.

The kitchen: the heart of the property

The kitchen is consistently identified as the renovation offering the best return on investment in Quebec and across Canada. According to data from the Canadian Real Estate Association (CREA), a mid-range kitchen renovation can recoup between 75% and 100% of its cost at resale. Elements that maximize ROI include replacing cabinets and countertops, upgrading appliances (preferably energy-efficient stainless steel), improving lighting, and updating flooring. A complete kitchen renovation in Quebec generally costs between $15,000 and $35,000 for a mid-range project, and between $40,000 and $75,000 for high-end.

The bathroom: a wise investment

The bathroom is the second most profitable renovation project, with an estimated ROI of 60% to 85%. Priorities include replacing the bathtub or shower (walk-in showers being very popular), upgrading the vanity and countertop, updating faucets and accessories, and improving ventilation. Adding a second bathroom in a home that has only one can offer an even higher ROI, as it is an important criterion for families.

Energy-efficient upgrades: save and add value

Energy-efficient renovations represent a strategic dual-return investment. Improving insulation (walls, attic, basement), replacing windows with high-performance energy-rated models (Energy Star), and upgrading the heating system (heat pump, condensing boiler) immediately reduce monthly energy costs while increasing the property's market value. In Quebec, where winters are harsh, these improvements are particularly valued. A RenoClimat energy audit (approximately $150 to $300) is the recommended first step to identify priority improvements and access government subsidies.

Other high-ROI renovations

Basement finishing (50% to 75% ROI): transforming an unfinished basement into livable space compliant with the Building Code
Exterior cladding replacement (60% to 80% ROI): improves curb appeal and weather protection
Adding a deck or patio (50% to 75% ROI): extends outdoor living space, highly sought-after in Quebec
Roof replacement (60% to 70% ROI): though not exciting, a new roof reassures buyers and lenders
Interior and exterior painting (50% to 100% ROI): one of the most cost-effective improvements for the money spent

Renovations to avoid if ROI is the priority

Some renovations, while enjoyable for the homeowner, offer a low return at resale. The in-ground pool is the classic example, with an ROI generally below 30% and annual maintenance costs of $2,000 to $5,000. Highly personalized renovations (very specific decor, custom setups for a particular hobby) and additions that push the property above the neighbourhood standard also offer low returns. Mortgage brokers should guide their clients toward renovations that maximize equity and resale value.

Frequently Asked Questions

Which renovation offers the best return on investment in Quebec?

A kitchen renovation generally offers the best ROI, estimated between 75% and 100%. A modernized kitchen is often the deciding factor in a potential buyer's purchasing decision. Bathrooms follow closely with an ROI of 60% to 85%.

Are energy-efficient renovations worth the investment?

Yes. Insulation, window replacement, and heating system upgrades offer dual benefits: reduced monthly energy costs and increased property value. Additionally, programs like RenoClimat (Quebec) and the Canada Greener Homes Grant (fédéral) offer subsidies and rebates that reduce the net cost of the work.

Is finishing the basement a good investment?

Yes, if the work is quality and compliant with the Quebec Building Code. A basement finished into livable space (office, bedroom, family room) offers an ROI of 50% to 75%. However, adding a bathroom and an adequate emergency exit to the basement are essential to maximize value.

Which renovations offer a low return?

In-ground pools generally offer an ROI below 30% and may even deter some buyers (maintenance costs, safety concerns). Elaborate landscaping, highly personalized renovations (custom home theatre, extravagant colours), and additions that exceed the neighbourhood standard also offer low returns.

Should I get an appraisal before and after renovations?

If you are financing renovations through mortgage refinancing, the lender will require a current value appraisal. For a purchase plus improvements loan, a post-renovation value appraisal is needed. Even without obligation, getting an appraisal after the work can document the value increase for a potential future refinance.

Do I need a municipal permit for my renovations in Quebec?

Yes, most structural, electrical, plumbing, or exterior-modifying renovations require a municipal permit. Work done without a permit can result in fines and complicate the future sale of the property. A contractor holding a licence from the Regie du batiment du Quebec (RBQ) is required to ensure permits are obtained.