Reviewing: Mike Holmes' article "8 Tips for planning a reno in 2014"

Hey everyone. I've been blogging a lot lately about renovations. I came across an article that might be of interest to folks. The Montreal Gazette published an article written by Mike Holme's entitled "8 tips for planning a reno in 2014."

In a nutshell, here are Mikes main renovation tips:

1. Right off the bat, Mike states, "Make decisions before you start. I've said it a million times. It takes longer to plan a renovation than to do it. The more time you spend making decisions before construction starts, the less time will be spent on actual labour, which helps control costs and work schedules."
2.  Find qualified pros: Mike suggest that you not rely on friends or family for recommendations and that you get 10-20 references for any contractor. He says, don't only look at recently completed projects and to check out work sites in progress.
3. Do a background check: Here Mike suggests that you do a background check. Bad contractors change incorporations to cover their tracks. Try speaking with the Better Business Bureau.
4.  Get a detailed contract: Mike states the more detail in the contract the better. It should review and specify every task. 
5.  Set up a payment schedule tied to project milestones: He also recommends that milestones be specified and that stages be completed and inspected before moving onto the next part of the reno.
6.  Discuss changes: Every time there is a change, Mike states, this causes delay and can increase costs. Speak openly with your contractor to ensure whether the change is worth this effort and delay.
7. Know the work schedule: This includes the daily work hours of the workers. Mike states if the workers visit the work site here and there at random hours then this will throw the timeline off track.
8. Should you stay or should you go? Mike suggest that during major renovations you should move out temporarily. Living through construction is never easy especially with young children and a busy work-life schedule. If you stay in your home Mike states that the workers will also spend more time cleaning daily at your expense rather than working faster towards project completion. 

Mike's tips are excellent. Like Mike, I am a huge fan of planning ahead before starting any project. The one part that Mike doesn't mention is financing. Here it's important to know what is your budget and how will you finance the renovation. Your dream project may need to be scaled down if it cannot be financed.

You may have the money in hand which helps tremendously or you may need a mortgage. Your two options here would be: 

(A) Auto-construction financing where the bank will give you a special mortgage that disperses funds (up to five dispersals) for the contractor at various milestones in the project. Here the bank will need to approve your contractor and project plan. 

(B) Refinance and use the net proceeds towards the construction. Here you will be in charge of the all the funds at once. Here the the bank may not need to see plans and budget. In both financing scenarios, it's important to stay on budget as the bank won't give you additional funds once the mortgage is notarized. 

Ready for 2012 & Habitat for Humanity Announcement

I hope everyone has slowly gotten back into gear and that2012 is off to a good start. I took some time over the holidays to relax but also met with a few clients. One family that I met with had decided to take the plunge and build their own house five years ago in Saint Lazare. Now they were looking to renew their mortgage and pay off some debts. Let me tell you the house was very impressive and a good example how building your home with a contractor is possible! My client went to the bank herself to get the construction mortgage. She said her experience was mixed and she didn’t get the guidance she expected nor was the process clear.  Speaking to a mortgage broker about a new construction helps with not only planning but understanding all the steps involved in building a home in phases. 

Secondly, I wanted to take a second to announce a new initiative that we at North East Mortgages are working on. We have partnered with Habitat for Humanity Montreal and the Habitat for Humanity Montreal ReStore(http://habitatmontreal.qc.ca/en/restore).Many people know about the valuable contribution Habitat does in building homes but few have heard of the ReStore. Yes, I know it’s based near Atwater Market in Montreal but it’s worth the drive from the West Island, Saint Lazare or even Hudson. The ReStore is one of Montreal’s best kept secrets where manufacturers and hardware stores donate hardware goods from paint, sinks, and anything else you can think of when renovating.  The prices are incredible low and proceeds get pumped back into Habitat so they can keep helping people. Please check out their website and location.