4 Reasons Why You Should Get Into the Home Renovation Business
Home renovations have become an important part of the Canadian economy. Canadians are making a shift away from buying new homes in favor of renovating their existing spaces. There are a number of possible reasons for this, including low interest rates, old homes, and a changing real estate market.
Regardless of the reasons, the home renovations industry is booming, and now is the time to get involved. Joining this industry as a business owner, contractor, or designer is a great way to take advantage of this huge moneymaker of an industry.
Here are four reasons why working in the home renovation business is a good idea.
#1 Fixing Homes Vs. Buying Homes
According to an article by the Financial Post, Canadians are spending more money fixing up their existing homes than they are buying new ones. A number of reasons my cause this flip in spending, including low interest rates.
One expert cited in Post article suggests that low interest rates are beneficial for people who wish to renovate their homes. With interest rates as low as they are, homeowners who renew their mortgages are almost all getting a lower rate, leaving cash in their pockets. That cash can go toward home improvements and adjustments.
In addition, there is a high number of homes across Canada that are fifty years old or older. Homes that are this old are dated in both style and construction, so buyers of these homes are investing in renovating them. The average renovation cost after a home purchase is nearly $10,000.
#2 Renovations Follow Real Estate
The real estate market in Canada is also influencing the number of home renovations that homeowners are undertaking. There is a huge discrepancy between the cost of a starter home and a luxury home, which seems to be driving more people to upgrade their existing spaces.
The majority of spending on home remodeling is going toward cosmetic alterations and improvements. Indeed, 75% of spending in the industry is dedicated to adding square footage, bathroom remodeling, kitchen remodeling, granite renovations, and other similar changes.
That means that only 25% of home renovation spending is dedicated to structural repairs on homes.
#3 Growing Renovation Market
It should come as no surprise, after reading about the increase in home renovations, that the industry is growing. In 2014, Canadians spent $68 billion on remodeling their homes, an increase of a whopping $20 billion over 2013.
Altus Group, a real estate research company, told the Financial Post that their research suggests that home remodeling is projected to grow by 3% in 2016, which is a rate faster than the Canadian economy as a whole. In fact, home renovation is a key component for the economy, making up 3.4% of the GDP.
#4 Opportunities Are Everywhere
The number of opportunities in the home renovations industry is incalculable. There are so many aspects of this industry—interior design, construction, installation, demolition—that finding a niche in this industry that fits your skills and interests is easy.
One of the easiest ways to get involved in the home renovations industry is to invest in a franchise opportunity. There are franchises for kitchen remodeling, bathroom remodeling, or even more specific parts of the industry, like flooring updates or granite renovations.
As the real estate market in Canada changes, so does the home renovations industry. The way interest rates, income disparities, and real estate markets have evolved indicates that the home renovations industry will be strong for many years to come. So find the area that interests you, and get involved!
What is your personal opinion? Can you give any more reasons why a person should get into the home renovation business? I would like to read your opinion in the comment section
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