Homebuyers are snapping up older homes at lower prices in neighbourhoods they might otherwise be priced out of, then investing in renovations to boost property value. Between 2019 and 2023, renovation spending in Canada surged by $300 billion — an 8% increase from the previous five years — driving up the prices of listings in the process. If you’re thinking about buying a fixer-upper, make sure you’ll actually see a return on your investment. You can determine that by tallying up all your renovation costs and subtracting the total from the home’s estimated worth after the work is done. Remember to include an extra 10% to 20% for any surprise expenses. It’s important to choose renovations that will give you the biggest returns: kitchen and bathroom remodels, along with fresh paint, typically offer the best bang for your buck, offering over a 60% return in most housing markets. If you need financing, think about a home equity line of credit or adding renovation costs to your mortgage. Just make sure to always have a healthy emergency fund to be able to fall back on.