Think twice before these costly upgrades

When considering major home renovations, it’s important to think about their return on investment. Some high-cost projects may not add as much value to your home as expected. For instance, installing a swimming pool can cost up to US$30,000 but typically only adds about US$5,000 in value, and many buyers are turned off by the maintenance required. Upscale kitchen and bathroom remodels also fail to provide a high return, recovering only 40% to 50% of the costs.

Converting a garage into living space might seem appealing, but it sacrifices parking and storage, making it less beneficial than finishing a basement. Similarly, turning multiple rooms into a large primary suite may reduce the overall value of a home, unless additional bathrooms are added. Installing wall-to-wall carpeting can lower a home’s value, especially over hardwood floors. Finally, building an addition to your home often results in recovering just 25% to 35% of the project’s cost.