Author; Graeme Kobayashi
So, you want to invest your hard-earned money. You have worked hours, weeks, years to save up for a big investment. You’re thinking about your future, your family’s future, or just want to see a decent return. Sure, there are “high-interest” savings accounts at your bank – and the bank is happy to hang onto your money for you, and they’ll even give you a really low return on your money in exchange for them investing or loaning it for bigger returns! If it sits there for long enough, you might see enough growth to buy a lawn mower in 10 years.
You can invest in RRSP’s, LIRA’s, RENO’s or GIC’s. Wait, what’s a RENO? Funny you should ask. A RENO is the common abbreviation used by general contractors and homeowners for “renovation”. If you’re not familiar with it, you should be, as it is a type of investment that is tangible, and involves you, the investor, as much as it does the team who is designing and renovating for you.
Many homeowners who have (or haven’t) undergone a renovation will say things like “it’s dusty”, “it’s expensive”, “it took months!” Well, all I can say is – I agree! It’s always easy to remember the downsides, but they’re forgetting the positives, like “I have a modern functional kitchen!” or “I am renting a duplex to young professionals and making more than my mortgage payments!” or even “my house is worth 25% more than it was before the renovation!” Not to mention you get to enjoy your beautiful newly customized space!
If you want to play a big role in where your money is going, and see your project develop before your eyes, RENO may be the right avenue for you. This investment doesn’t take 35 years to mature. And what other kind of investment can you say turned into some kind of monthly mortgage-helper?
At Catalyst, we have completed renovations for countless clients. But what we have recently added to our tool belt (sorry for the pun), is a partnership with a small, honest and reliable real estate firm. They are local to our area, so are very familiar with the market and its trends. This allows us to provide three things to our clients:
- An opinion of value prior to even committing to a renovation.
- An estimated value of the home based on today’s market and the scope of work proposed (and in the case of an income property, suggested rental income).
- A final opinion of value once the renovation is completed to provide the client peace of mind that the money, and stress of a renovation was worth it.
So, before you let the banks borrow your money for next to nothing, consider educating yourself on how a RENO can give you ROI (Return On Investment)! You can also feel satisfied that you’re investing in the local community, supporting local businesses and improving your neighbourhood’s quality and of course, get a little privacy in your new ensuite.