There are signs that Canadians are spending more on home improvements and renovations. Sales at building materials and gardening supplies centres and at home improvement and furniture stores were up in November, the third increase in four months, according to Statistics Canada. The increase was the biggest since mid-2014.

Another sign comes from home improvement retailer Loew’s, which announced that it was hiring 46,000 seasonal workers in the US and 3,000 in Canada. The Canadian hires will work in the company’s existing forty-two stores in Canada as well as at six new stores the company plans to open by the middle of the year. The positions include customer service, cashiers, loaders, stockers, sales specialists and assemblers.

In 2014, Canadians spent more money on renovations, $68 billion, than we did on new homes. One reason for the big spending is the fact that many homes are just getting older and need work.

Another factor is low interest rates. As long as rates stay low and even drop further, many people who renew their mortgages end up with a lower rate than they had. This can free up money to spend on the home.

After conducting a survey of home owners and their renovations intentions, real estate research company Altus Group forecast that spending would rise by 3 per cent in 2015 and 2016. A similar trend is underway in the US where home-improvement spending is expected to rise by 4.3 per cent in the first quarter of the year and 7.6 per cent in the third quarter (July–September).

Renovation spending in Canada accounted for 3.4 per cent of the country’s GDP in 2014. Most of that was spent on improvements and alterations, the rest on repairs.

In Ontario, the government announced a renovation tax credit last year for people who make permanent changes to their homes in order to accommodate age-related needs. Installing grab bars in bathtubs, handrails in corridors, walk-in bathtubs, wheelchair ramps and hands-free taps can be eligible for the tax credit of $1,500 on $10,000 of eligible expenses.

Consumers are strongly advised to be clear about why they wish to renovate, whether it’s to improve the resale value of the home or to make it more comfortable for themselves. This could affect what they choose to spend money on. Improvements to the kitchen and bathroom, for example, tend to provide the greatest payback.

The president of the Building Industry and Land Development Association (BILD), Bryan Tuckey, also advises that consumers find a professional renovator and avoid dealings with the “underground economy.” It is especially important for condo owners to hire renovators with experience working on condos. They will be familiar with typical condo rules and regulations about work hours and noise, and with the permits required under the Ontario Building Code.

Most important is to get a detailed written contract, with the scope of the work, the timeliness, payment schedules and warranties spelled out. Tuckey recommends that consumers use Renomark (renomark.ca) to find qualified, approved professional renovators and trade contractors. All Renomark contractors offer a minimum two-year warranty.

Home Improvement | Reno Season is Fast Approaching by Josephine Nolan | condo.ca