Definition
Not all renovations increase a property's market value in the same proportion as their cost. Some offer excellent real estate ROI; others have only limited cosmetic effect.
**High-ROI renovations (60-90% typical recovery)**: 1. **Kitchen**: cabinet, countertop, appliance renewal — estimated ROI 75-85% 2. **Bathrooms**: update of sanitary fixtures, tiling, faucets — ROI 65-75% 3. **Basement development** (finishing): conversion to living space — ROI 60-75% 4. **Energy efficiency**: windows, insulation, heat pump — ROI 50-70% + energy savings 5. **Roofing** (complete replacement): necessary for sale, ROI 60-65% but protects the asset
**Low or negative ROI renovations**: - In-ground pool: high cost, sometimes reduces buyer pool in Quebec (maintenance, safety) - Luxury finishes in a standard neighbourhood (over-improvement) - Elaborate garden / landscaping (personal taste, little transferability)
**Impact on bank appraisal**: A renovated property may justify an upward reappraisal → recoverable appreciation via refinancing (equity withdrawal) or a HELOC (home equity line of credit).
**Renovation financing**: - Home equity line of credit (HELOC) - Mortgage refinancing - Non-mortgage renovation loan - Rénoclimat program (eco grants QC)