BMO's Financial Tip of the Week: Focus on Renovation Projects with the Greatest Return and Avoid Overextending Yourself
TORONTO, ONTARIO--(Marketwire - Oct. 16, 2012) - As part of BMO Financial Group's ongoing commitment to financial literacy and 'Making Money Make Sense' for Canadians, BMO is releasing a financial tip every week in 2012.
BMO's Financial Tip of the Week: Focus on renovation projects with the greatest return and avoid overextending yourself financially.
The fall season is traditionally a busy time for home renovations. As Canadians finalize their reno plans and projects, many will be focusing on projects that will add the most value to their home.
In fact, a BMO survey revealed that half of Canadian homeowners (51 per cent) plan to renovate in the next year, and are choosing projects with the greatest returns - a sign that consumers are taking a strategic approach to their reno investment.
"When planned strategically and with the advice of a professional, renovation projects have the potential to add significant value to your home," said Laura Parsons, Mortgage Expert, BMO Bank of Montreal. "However, it is important for homeowners to consider the financial implications involved to avoid overextending themselves - regardless of the scope of the project."
Ms. Parsons added that renovation projects come in different shapes and sizes and can vary in return on investment.
BMO offers the following advice for Canadians considering home renovations:
- Understand how a renovation will impact the value of your home by researching which renovations create increased value and are popular selling features.
- Think long term when making financial decisions - whether you are using savings or borrowing to renovate, take the time to meet with a financial expert to ensure your renovation meets your long term financial objectives.
- Expect the unexpected - be financially prepared for the unexpected such as a leaky roof, broken pipe or other course corrections that may occur during the project.
- Get renovation quotes in writing and understand what guarantees they provide - for example; if the cost of the plumbing in your renovation is more work than expected, will the quote go up?
To learn more about how BMO can help with your home renovation plans, visit a local BMO branch today.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at July 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
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