Renovation tax credit boosts home improvement projects in Canada: RBC survey
Budget savvy renovators choose cash and savings over credit to pay for projects
The survey, conducted by Ipsos Reid, also found that three in four Canadians (76 per cent) who are planning to renovate will pay for most or all of it with cash or savings, compared with 70 per cent in 2008, signaling a shift in the way Canadians view home improvement financing. Fewer renovators, 24 per cent, plan to use a credit card to finance their renovation this year, compared with 32 per cent in 2008.
"It's not surprising that Canadian renovators are getting smarter with their renovation financing and avoiding debt in light of the current economy," said
Although more homeowners say they have completed renovation projects this year as a result of the tax credit, the RBC Renovation Study found that fewer Canadian homeowners (66 per cent) intend to renovate over the next two years (compared to 70 per cent in 2008). While intentions to renovate are down, potential renovators anticipate spending more on their renovations with the average amount moving up steadily to
Many renovators (35 per cent) plan to focus on upgrades only including exterior renovations (67 per cent), general renovations such as painting and floors (64 per cent), bathrooms (41 per cent) and kitchens (36 per cent).
As for the biggest renovation headache, most homeowners complained of going over budget (30 per cent) and almost one third (32 per cent) said the time it took to complete the renovations was worse than expected.
"Renovating is often fraught with frustration and it's easy for costs to rise by adding small projects until you're over budget and behind schedule," added Moffat. "The best course of action is to expect the unexpected and prepare with advance planning, a realistic budget and flexible financing options at the outset."
Renovations by the Numbers Intentions among Regions Average Spend ------------------------ ------------- B.C. - 65% $10129 Alberta - 64% $12374 Sask/Man - 73% $15133 Ontario - 67% $12428 Quebec - 65% $ 7734 Atlantic Canada - 72% $12586 Renovate or Sell/Move --------------------- Region Renovate Sell ------ -------- ---- B.C. 66% 25% Alberta 67% 27% Sask/Man 72% 22% Ontario 69% 25% Quebec 78% 16% Atlantic Canada 78% 15%
These are some of the findings of an RBC poll conducted by Ipsos Reid between
For full tabular results, please see the Ipsos Reid website at www.ipsos.ca.
For further information: Media Contact: Matt Gierasimczuk, Media Relations, (416) 974-2124; Jacqui van der Jagt, Corporate Communications, (416) 974-1756
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