Kitchens are King

When it comes to home renovation plans and dreams, the kitchen still reigns supreme, according to a national home renovation poll conducted by Leger Marketing for TD Canada Trust.

One-quarter (26%) of the 1500 poll respondents said they are planning to renovate their homes in the next year. Among this group, the main target was the kitchen (28%), followed closely by the bathroom (26%).
Three-quarters of poll respondents said they not planning a renovation but, if they were, the kitchen would be their first choice (26%) with the bathroom a distant second at 13%. If money were no object, this group's dream reno would be a "urmet kitchen" (22%) or a solarium (12%).

Of the one out of four Canadians (26%) who plan a home renovation next year, 56% will do it themselves and more than half (52%) will spend less than $5,000. As the size and cost of renovations increase, so does likelihood of hiring a contractor. For those spending from $10,000 to $25,000, 47% will do it themselves. For those spending more than $25,000, the percentage of do-it-yourselfers plummets to 8%.
The portrait that emerges of Canadians most likely to renovate in the next year, according to the TD Canada Trust / Leger poll, is that of homeowners between 25 and 64 years of age, with children under the age of 18 and with incomes of more than $60,000 per year.
For those spending from $10,000 to $25,000 on renovations, 16% will use unsecured credit (a credit card, bank loan or a personal line of credit) and 11% will use secured credit (a mortgage or home equity line of credit). For renovation plans over $50,000, half of homeowners will use their savings (50%), one-quarter (25%) will use unsecured credit and 13% will use secured credit.

The Canadian Home Builder's Association advises homeowners that the bigger the renovation project, the more likely it is they will incur unanticipated costs. Delays caused by the weather, hidden defects in the walls or changes to the renovation plan by the homeowner while work is in progress can all lead to higher costs. "For those who are planning to borrow for renovations," says Wisniewski, "my advice would be to sit down with your banker and look carefully at all the options to ensure you have built some flexibility into your financing plans. A home equity line of credit can offer you low interest rates, flexibility when you need it and easy access to funds"

Other significant poll findings include the following:

- Men (29%) are more likely than women (22%) to say they plan on renovating in the next year.
- Kitchens lead in planned expenditures for larger projects. 77% of Canadians who are planning projects from $25,000 to $50,000 will spend it in the kitchen, whereas only 27% who plan to spend less than $25,000 will spend it on that room.

In terms of adding resale value from home renovations, the Appraisal Institute of
Canada advises that kitchens and bathrooms have the greatest payback potential, followed by interior painting and exterior painting.

- We may spend about a third of our lives asleep in the bedroom, but only 16% of Canadians plan to renovate their bedrooms in the next year.

- The do-it-yourselfers who will conduct more than half of home renovations tend to be younger, with 25-34 year-olds much more likely to go this route (67%) than those age 55 or older (46%). They are more likely to be high school or college educated (64% and
63% respectively) than university-educated (44%). They plan to spend less than $5,000 (68%) and are most likely to pay for their renovations with a credit card (70%).

- 52% of Canadians will spend less than $5,000 on planned renovations, 27% will pend $5,000-$10,000, 13% will spend $10,000-$25,000, 3% will spend $25,000-$50,000 and only 2% will spend more than $50,000.

- Six in ten Canadians (60%) say they will rely on their savings to pay for home renovations, with those earning less than $20,000 a year the most likely (91%) to use their savings (versus 61% for those earning more). The main reason provided by those who will use their savings is to avoid incurring debt, followed by the fact that they
have sufficient savings to cover their renovations.

- Credit cards, at 10%, are a distant second to savings as a source of financing for home renovations.

- For almost three-quarters of Canadians not planning to do home renovations in the next year, the main reason cited is that they are not necessary (39%), followed by the fact that they recently renovated (15%), cannot afford the cost (11%) or have no time (3%).

- If money were no object, the number one choice of Canadians for a dream renovation is a gourmet kitchen. Women choose a gourmet kitchen somewhat more often than men (24% vs. 19%). Those aged 35 to 54 are also more likely to make this choice than Canadians over the age of 65 (26% vs. 14%).