Survey finds homeowners less likely to use credit to pay for renovations
By Heather Rose
Canadians are more likely to use cash instead of credit to fund home renovations this year than they were last year, according to an Ipsos Reid survey of 3,000 homeowners conducted this past fall for the Royal Bank of Canada. Cash purchases are easier to keep track of and work better into a budget than using credit, with no surprises, debt or additional fees. Due to the state of the economy, more Canadians are conscious about how they use their money and what kind of financial decisions they should make when it comes to improving their home, whether for their own personal needs or in an effort to sell it. Up six per cent from last year, 76 per cent of those surveyed said they were planning to use cash rather than add to their debt during their upcoming home renovations. Other findings from the survey include:
• Across Canada, homeowners expect to spend an average of just over $11,000 on renovations.
• 63 per cent of those surveyed will be taking advantage of the new Home Renovation Tax Credit.
• Almost half of the people surveyed said they’ve done renovations that they might not have done otherwise specifically because of the Home Renovation Tax Credit.
• 18 per cent of those surveyed are renovating their homes to make them easier to sell.
• Bathroom renovations make up 41 per cent of the total intended renovations.
• Almost one-third of those surveyed said the biggest annoyance while renovating was going over budget, and 32 per cent of those surveyed said the process of completing the renovations taking longer than expected was their biggest aggravation.
• Saskatchewan and Manitoba are tied for the most intended renovations and highest price tag with 73 per cent of respondents saying they intend to renovate for an average of $15,133.
• People in Quebec will to spend the least amount of money on their renovations, an average of $7734.
• 78 per cent of those surveyed in Atlantic Canada intend to renovate their homes while only 15 per cent intend to sell their homes. Alberta has the highest number of people wanting to sell with 27 per cent, and only 67 per cent planning to renovate.
With the rush to renovate early and take advantage of the Home Renovation Tax Credit, being careful and using cash is much easier on your budget and credit score.
Heather Rose is a Toronto based Journalist, who is a regular contributor to the Muddy York Real Estate Blog. Heather website is located at heatherroseportfolio.squarespace.com.
