ADY - Trend - Yellow

Canadians Would Rather Improve than Move

Eighty per cent of Canadian homeowners say that they'd choose to renovate rather than sell and move if their home needed major improvements, according to the 2006 RBC Royal Bank Renovation Survey. Although renovation intentions are slightly lower (by six per cent) than they were last year, a significant 70 per cent plan to renovate in the next two years. "Canadians continue to consider any investment in their homes to be a very good investment indeed," said Catherine Adams, vice president of home equity financing for RBC.

The most popular renovations being planned are bathrooms (36 per cent), followed by kitchens (28 per cent) and basements (27 per cent). Of those planning home improvements, 48 per cent will undertake the work themselves and 40 per cent - a higher proportion than in 2004 - will hire a contractor. Only 15 per cent plan to enlist the help of family members.The highest intentions to renovate are in the Atlantic region, where 80 per cent plan to renovate in the next two years. Next are Alberta and Saskatchewan/Manitoba, at 75 per cent each. The lowest intentions are in British Columbia (65 per cent).On average, homeowners anticipate spending $8,982 on renovations, up slightly from last year, and 48 per cent (compared to 69 per cent in 2004) will tap into cash or savings. Another 38 per cent will use lines of credit while 26 per cent use credit cards. Only 13 per cent would consider a home equity line of credit or a homeline plan, the lowest cost of all the borrowing options, according to RBC.Establishing realistic renovation budgets continues to be a problem among Canadian homeowners. The RBC survey showed that, over the past two years, 40 per cent of those who made budgets went well over their budgets - by an average of 88 per cent.