Home Renovations continue to be a popular area of investment for homeowners despite the current economic turmoil. It makes sense at a time when buying new doesn’t and building on what you have, does. Now that you’ve decided to renovate, there are still some things to consider before you go ahead. Yes, you believe that you’re adding value to your property, however, with some wise planning before the hammer hits the nail you can actually be saving money too.

Create a Detailed Plan

It is of the utmost importance to properly create a plan, budget, and time frame for your home renovation job. Such preparation is crucial to the enterprising DIYer and it’s also useful to those counting on professionals. Get a very clear picture of all estimated costs that will account for everything from materials to labour. Not only that, but it’s also important to figure in backup funds for situations which may arise as the project progresses. A safe estimate is 15% on top of the initial projected budget. If you have a realistic figure to work with that corresponds with very detailed drawings and plans, you are preparing a contingency for those unforeseen issues. Just being aware of this possibility can keep you from future migraines and possible bankruptcy.

Cut Down on Material Costs – Not Quality

Materials of course account for a large portion of the expenses in any renovation project. And although you may want to get the best price you can, you may not wish to sacrifice quality just to save a few bucks. This is your home after all, (where you might be living for 20 years to pay off a mortgage).

Companies that sell recycled material from demolition sites such as Happy Harry’s give you both a budget conscious and green option. “Found” wood is another trendy yet wonderful option – imagine creating a unique hardwood floor from an old wood cabin or antique ship. If however, you are more inclined towards higher-end materials but want to pay a fraction of the cost, consider Habitat ReStores. These affiliate stores found across Canada and the United States offer surplus and used building materials for much less than retail. ReStores get their supplies from donated goods provided by: building supply stores, local contractors, demolition crews, and others wanting to support the cause. Not only are you saving money, or being green, you are also helping to raise funds that let Habitat for Humanity build 10 or more additional homes a year.

Implement Green into Your Renovation

It’s shocking to consider that your home may be a toxic place. Do you know what went into the finishes of your hardwood flooring or kitchen cabinetry where you cook, or even the paint on the walls in every room in the house? Making green choices for your home renovation is not only important for your health and the health of our planet, it can actually save you money. Although the initial costs may be higher, using ethical and non-toxic materials that are longer lasting, as well as installing energy efficient components will save you money over time. From more complicated aspects like redesigning your home, to being conscientious about product selection, consider these options suggested by Rob Wright, owner of Citadel Renovations.

* ICF foundations * Composite floor, roof, and wall framing * Low e film, argon gas, and triple pane glass in windows * Compact fluorescent and LED lights * Lots of natural light * Reduced and/or no formaldehyde cabinetry * Low or no VOC paints and finishes * Composite material exterior finishes * Recycled material roofing: metal, rubber, cement * Wood or linoleum floors * Heat pumps: ground, water, and air

The money you’ve saved on heating, lighting, and water once you’ve made your home more energy efficient will over time actually pay for those improvements.

Decide If It’s a Worthy Investment

It may seem like a no-brainer to first figure out if the investment you plan to make in upgrading your home is one of value, but it may come as a surprise that some are less financially beneficial than others. CMCH, the Canada Mortgage and Housing Corporation, Canada’s federal housing agency, is a great resource for homeowners who are considering a renovation project. Their website offers a host of useful information, such as this break-down of renovation payback ranges:

Top four greatest payback potentials

* Bathroom renovation (75 – 100%) * Kitchen renovation (75 – 100%) * Interior painting (50 – 100%) * Exterior painting (50 – 100%)

Versus:

Ten average payback potentials

* Roof shingle replacement (50 – 80%) * Furnace/heating system (50 – 80%) * Basement renovation (50 – 75%) * Recreation room addition (50 – 75%) * Installing a fireplace (50 – 75%) * Flooring (50 – 75%) * Constructing a garage (50 – 75%) * Window/door replacement (50 – 75%) * Building a deck (50 – 75%) * Central air conditioning (25 – 75%)

Repairs or beautification are the most prevalent ideas that come to mind, however, safety improvements are another way to go that will your wallet happy. Check with your insurance company if they offer lower premiums when you add or upgrade a home security system, fire prevention measure, or improve the existing wiring.

We’ve all heard the renovation horror stories that look like something out of that 80’s movie The Money Pit. It’s not something we like to think about; the possibility of your hard earned $10,000 renovation budget ending up being but a drop in the bucket. Like any other investment, you wouldn’t blindly drop ducats on any random man in a suit with a smile – you do your homework first. Not only will you bring added value to your home with your new renovation, you will also save money with your carefully laid out plans.

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