How Much Should That Renovation Cost? How To Find Out If You're Getting Ripped Off

The idea: inform you of what you should expect before you sign on the dotted line.

"We tend to get calls after the fact ... We want to encourage people to call before," Michaels explains. "This launch is a more proactive approach to educate our consumers."

Homeowners can check up on a number of jobs including carpentry, plumbing and roofing. The new initiative hopes to ensure you know exactly how long a job should take - and at what cost - before entering into a contract.

Project Fix It will continue until Labour Day weekend. But you'll be able to continue to call after that date if you have any questions concerning future renovations. Want to know more? Call (416) 392-3082 for additional info.

A checklist when you're renovating:

• Check with Toronto Building to determine if a construction permit is required for the proposed renovation
• Get at least three quotations from licensed contractors
• Ask the contractors for their City of Toronto business license number and verify the information by calling (416) 392-6700
• Get references from other customers
• Enter into a written and signed contract
• Ensure that all work to be done (including site clean up) is clearly stated in the contract
• Ensure that the full price of the job is in the contract
• Pay the full amount at job completion or include a payment schedule in the contract (payments should correlate with the amount of work done by the contractor)
• Include in the contract the name of the company, the business address, phone number, a completion date, and a City of Toronto License number
• File a complaint if you come across illegal activity by calling (416) 392-3082 or e-mail the Municipal Licensing and Standards licensing mailbox at www.taxiline@toronto.ca.

List courtesy: City of Toronto

Renovation tax credit not yet approved: expert

View larger image Bob Whitelaw, a public policy consultant, speaks on CTV's Canada AM from Ottawa, Thursday, Aug. 6, 2009.

CTV.ca News Staff

Canadians planning to take advantage of the Home Renovation Tax Credit should know that it has not been passed into law, though one expert says it is almost a certainty that they will be able to file for it on their taxes.

The $3 billion program was introduced in January as an incentive that the government hoped would help stimulate the Canadian economy during the early days of the current recession.

The government estimated that as many as 4.6 million Canadian families would take advantage of the chance to complete home improvements, while saving up to $1,350 on their annual taxes.

Sales at home centers and hardware stores were up for the third consecutive month in May, suggesting that the incentive seems to be working.

But public policy consultant Bob Whitelaw told CTV's Canada AM that the HRTC technically cannot be claimed until it is approved by Parliament -- something that hasn't happened yet.

"This was introduced as part of the 2009-1010 budget in January, the credit is effective from January to next February, but subject to passing in the House of Commons and Parliament before you can really claim it on your taxes," he told CTV's Canada AM during an interview from Ottawa on Thursday morning.

And while Whitelaw believes it is highly unlikely that the tax credit will not go forward, Canadians should know that it has not been passed into law.

"Carry on with those expenditures, know that I'm sure our colleagues and people in government will be working diligently to pass this -- whatever party might be in power, within the next year -- so that it will be in effect...for the tax year," Whitelaw said.

The federal government has been heavily promoting the tax credit as part of its economic action plan, and only last week, Prime Minister Stephen Harper said "there has never been a better time to renovate your home," suggesting that the tax credit can help homeowners save on their taxes and increase the value of their homes.

Under the HRTC, homeowners can receive a non-refundable tax credit worth up to $1,350 depending on the expenses associated with eligible renovations or improvements made after Jan. 27, 2009 and before Feb. 1, 2010.

The renovations must be worth more than $1,000, but not more than $10,000, in order to qualify for the tax credit. Homeowners are required to provide receipts and appropriate documentation in order to claim it.

How much should Bathroom Renovation cost

In the long-run, your bathroom may no longer satisfy your needs. This can happen simply because the number of people living in your home may have increased. It may also be because the design is boring you that you no longer enjoy it. Or probably because it is almost on the point of crumbling down that you constantly experience problems when using it.

You can expect that this will happen to you. Your bathroom is just like any parts of your home. It could wear out eventually. When this time comes, you would have to resort to bathroom renovations. This turns your bathroom into a whole new facility while capturing your idea of comfort.

When you plan to renovate your bathroom, one of the most common questions that people ask is, "what is the cost?" It is quite understandable because renovation can be a major project that involves a lot of money. Some experts say that the typical cost of renovation would fall between 9,000 to 25,000 dollars. While others say it could cost around 12 to 15 grand for minor renovations; 15 to 20 grand for moderate changes; and up to 30 grand for top-quality renovations. However, there is no specific cost because there are different basis for pricing. Here are the bases:

1. The size of the bathroom- You need to know exactly how big your bathroom is. This will give you or your builder a clear estimate of the renovation based on its floor area or wall space. You may have to get an accurate measurement or a good estimate of your bathroom space to get a fairly accurate estimate.

2. The kind of materials used- You may be planning to replace the shower heads, sink, toilet, faucets and other stuff. If top quality materials will be used, expect the cost of renovation to rise. You also have to know what needs to be replaced as this can also impact the cost.

3. The complexity of your design- Some people may want to alter the surface of the bathroom. Tiles and walls may be replaced and new features may be added. This is inevitable especially when the walls are starting to rot or perhaps, the tiles begin to loosen up. When the overall layout of the room will be changed, it will also increase cost.

4. The contractor you hired- Different contractors have different estimates. To get the most economical deal, you need to get more than one estimate. You may have to shop around and find two or more reputable contractors. Pretty sure they will give you a copy of their written estimates.

Others would also think of renovating their bathrooms by themselves. This is a great idea because you can actualize what you have in mind for the design (given of course you know what you are doing). On top of that, the cost of renovation could also be cut down about 20 to 40 percent.

The cost of renovating your bathroom could really vary but it is controllable. Just make sure not to sacrifice the quality of materials just to lower the cost.

Your Rights When Dealing With Home Renovations

• Under the law, the final price of the goods or services cannot be more than 10 per cent over the original estimate. If new work comes up, your home reno contractor should discuss it with you and you should be asked to approve a “change order” that includes the new work and a revised estimate to cover new goods and services.
• The Consumer Protection Act establishes important protection for consumers in their home reno contract. Let’s say you make a purchase or sign a contract in your home. If the deal is worth more than $50, you have the right to cancel within 10 days. It’s best to do this by registered mail or fax, to get your money back. The only exception to this cooling-off period is in a case of emergency home repairs, where the consumer must have approached the seller and requested the services to be provided within 10 days of receiving the written contract.
• Consumers are protected against unfair business practices such as deceptive promotional and sales tactics. If an unfair practice has occurred, you can rescind the agreement within one year. One way to do this is by sending the seller a registered letter. If that doesn’t produce results, see our Consumer Protection Toolbox.
• Under the Consumer Protection Act, it is illegal for a home reno contractor to hold onto your belongings to renegotiate a higher price. Unless conditions change, the original agreement stands.
• If you want to complain about a home reno contractor, go to visit Your Consumer Protection Toolbox to find out how. If that doesn’t get you anywhere, contact the Consumer Protection Branch.

REAL ESTATE 1 Bloor condo dreams alive

August 20, 2009 Tony Wong
BUSINESS REPORTER

The condominium property site at 1 Bloor may have been sold, but the dream of putting a high-rise building at one of Toronto's most prestigious addresses lives on.

Industry speculation is that Toronto-based Great Gulf Homes is the likely buyer of the property.

``They are an established builder familiar with the area and with a good track record,'' said one source.

The company will likely commit to developing some form of high-rise condominium, although the hotel component may no longer be a part of the building, according to sources.

Calls to Great Gulf Homes were not returned yesterday. The privately held company is one of the largest home builders in the Greater Toronto Area.

The controversial 1 Bloor hotel and condo project was at one time supposed to be the tallest residential tower in Canada.

Developer Bazis International Inc. said late Tuesday that ``a well-established Toronto developer has entered into a binding agreement with Bazis International for the One Bloor property with closing in mid-September.''

The Kazakhstan-backed company said last month in documents filed in court it had intended to sell the property on the southeast corner of Yonge and Bloor streets.

Realtor Anna Cass was one of the first in line to buy a unit in the building. She purchased a 1,300-square-foot unit, and sold units to many of her clients.

``This wasn't just about making a deal; this is where I wanted to live,'' said Cass. ``This was my dream.''

Cass says she hopes the building will still be completed.

``I'm just a regular salesperson. It took a lot of hard work for me to get ahead – and this is what happens. It's been a difficult couple of years.''

Hundreds of buyers like Cass had lined up for weeks in 2007 to own a piece of the property, which featured units priced from $500,000 and up. The penthouse was reportedly sold for $25 million.

Jamie Johnston, a broker whose firm specializes in condominiums, said he warned investors to stay away from the 1 Bloor project when it was first marketed.

``I thought it was over-hyped and over-priced,'' he said.

Developer Michael Gold stopped making payments on a $46 million loan in December. When the loan continued to be in default, a consortium of lenders tried to place the project in receivership.

The group offered $50.5 million to Gold. But he ended up selling the property to someone else.

The 500 people who bought units in the hotly sought-after property are also waiting to hear what will become of the $70 million in deposits held in trust. A spokeswoman for Gold said her client was not granting interviews.

However, Audrey Loeb, a real estate lawyer with the Toronto firm of Miller Thomson and the author of two books on condo law, says deposits by buyers are held in trust under the Condominium Act.

``The funds have to be in place with the developer's lawyer or another law firm so they should be safe,'' Loeb said. ``Not getting back your deposit is not a typical problem that we would have.''

Bathroom Design

Wood Bathtubs are a luxury all on their own and can give any home, hotel or spa a very special talked about feature. The home spa is coming more and more into style as the baby boomer generation begins to retire. Affluent couples are looking towards luxury goods that they can have in their own home and use on a day to day basis. Wooden tubs can be a stunning feature. Numerous specialty companies are begining to make wood and/or solid stone tubs that embody the curves of the human form or the organic lines of nature making the spa experience more relaxing, gentler and bringing the user closer to nature in the comfort of a controlled environment.

Bagno Sasso Leaf shaped Bathtub

Laguna Spa Bathtub

WS Collections classic wood bathtub

Bagno Sasso Bathroom

Couple's renovation nightmare is demolished

City officials said the collapsed foundation rendered the entire structure unsafe. A close-up showing the damage to the home's foundation. Couple's renovation nightmare is demolished ctvtoronto.ca When Kyla Prashad and her husband started renovating their home in Toronto's east end, they hoped to finish the repairs themselves and re-sell the house for a modest profit. Instead, the young couple is facing a $100,000 demolition bill after city officials labelled the house unsafe. The couple, who have a young daughter, had yet to live in the two-storey house and invested tens of thousands of dollars into fixing it up. To make matters worse, the couple was told that since they did the renovations themselves, insurance won't cover the tab to take the house down. "This has basically been our dream, and it's all coming crashing down - and we have to pay for it (to come) crashing down," Prashad told CTV Toronto's Dana Levenson Tuesday. During the renovations, the couple made some excavations in the home's basement, but heavy rains over the weekend led to flooding water that weakened the supporting walls. On Sunday, the foundation walls collapsed in on themselves. Now, only the front and back walls are holding up the house, and city officials say the entire home is completely unstable and must come down. On Tuesday, a large gap was visible between the ground and the bottom of the home's side wall. "The entire foundation wall of the building has basically collapsed into itself, and we have a building that's in an unsafe condition," a city official told Levenson. The demolition was slated to start Tuesday morning, but was delayed until later in the afternoon. Prashad, along with her husband Jason Carey, planned on using the profits from the sale to pay for the renovations and to clear some debt. "I just hope that this is actually the right thing that's happening," said Prashad. With a report from CTV Toronto's Dana Levenson

Mike Holmes: Insulation has homeowners foaming at the mouth

Mike Holmes: Make It Right, Canwest News Service

Published: Friday, August 14, 2009

You might have heard the recent news about a $500-million class-action lawsuit against both the government of Canada and the manufacturers and distributors of RetroFoam, a retrofit spray foam insulation.

RetroFoam imported and distributed insulation that contains urea formaldehyde. On Feb. 3, 2009, Health Canada, under the Hazardous Products Act, ordered RetroFit to stop importing, advertising and selling the insulation and to recall all product, but not that it has to be removed from houses.

Urea Formaldehyde Foam Insulation (UFFI) has been banned in Canada for over 20 years because it releases formaldehyde gas into the indoor air over time as it cures. According to Health Canada, a small amount (0.1 parts per million) is a safe level of formaldehyde, but it depends on your sensitivity, age and general health. Homeowners who have had RetroFoam installed are having their indoor air quality tested.

We don't really know what the risk is to health from the formaldehyde in spray foam. There are trials still going on with UFFI and many of the tests show the off-gassing is minimal and safe. And, there is formaldehyde released from all kinds of building materials and furnishings, including MDF, carpets, flooring and cabinets. I'm not saying that's a good thing, but that is reality.

I'm a big fan of spray foam, but always use it when the walls are open so we can ensure we get intimate contact with the surface and no gaps are left. I recommend and use Walltite Eco, a proven eco-friendly product.

I understand the appeal of a retrofit spray foam insulation. But for homeowners doing a retrofit who don't want to have to tear out their drywall, it's pretty tempting to try a product that claims to do a similar job, at a fraction of the cost, since your installer just drills holes in the wall and sprays in the product.

The average homeowner doesn't know that RetroFoam wasn't legal for sale. But I guess the lesson is to make sure you know what's going into your house. Don't take for granted the products used are going to be safe. Ask questions. It is your home, so you need to take responsibility as much as you can.

RetroFoam of Canada is ultimately responsible to make sure the products they import and sell are legal in our country. And from what I know, the product hasn't been tested by the Underwriters' Laboratories of Canada (ULC).

In fact, RetroFoam is still legally sold and installed in many countries, including the United States.

But understand that every country has different acceptable standards for products. What the U.S. website for RetroFoam can claim ("no formaldehyde or other harmful emissions. . .") might be true there. But "no" might not mean "zero per cent." Or it might mean something like "meets acceptable standards" in parts per million, etc.

What's interesting to me isn't that the claim is about the health risks of RetroFoam. The lawsuit has nothing to do with whether the air quality is bad or not. It's to do with the fact that the houses may now be worth less.

The argument is that homes insulated with RetroFoam will now be stigmatized, and their property value will be reduced - just like in the UFFI scare more than 20 years ago. In recent years, homeowners have legally had to declare UFFI in any sale of a home.

The claimants are looking for recovery of the lost property value. I'm not saying it's not a real problem. If I suddenly couldn't sell my house, or was facing a big loss, that would be a huge problem to me!

The government of Canada is named in the suit because many of the homes were insulated under the federal government's ecoENERGY retrofit program. The claim is that because the insulation work qualified for the energy efficiency grants - that is, a homeowner had more insulation added and that increased the house's R-value - that implied that the government endorsed the products used.

Our government didn't specifically recommend RetroFoam to consumers, and the installations are done by independent contractors. But since the owner of RetroFoam Canada has filed for bankruptcy, I guess the buck has to stop somewhere.

So who dropped the ball on this one? And who's going to be left holding the bag?

I don't know how many times I've seen a contractor or company screwing up and walking away, leaving homeowners in the mess. At least if the government is named in the suit, someone will clean it up.

A real time and money saver

Multi Unit Residentail “There is no better place to start!! If you are contemplating ANY renovation work, or perhaps you are in the market to do a "flip", Reiner is the one you need to talk to. He will walk you through the process from start to finish, point out all of the issues that could arise when undertaking a renovation project..... In his consulting role, he acts for you in your best interest and makes sure that you understand your options. I highly recommend that you contact Reiner prior to starting your project. He has been an invaluable resource for me. Katrina” July 30, 2009

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Approximate cost of services:

$900,000.00

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Removed the Risk and Worry from the Project

Home Renovation The project was a complete home renovation, which essentially meant tearing everything down to the wall and re-building the inside. The project was done on time and largely on-budget, even with some relatively major changes about a third of the way through. The contractor Reiner suggested and that I picked was very competent and easy to work with. The door and windows I bought from Reiner make the house (along with the kitchen). All in all Reiner removed all the stress and worry usually associated with these kind of projects and allowed me to focus on my work and life instead of the project. Highly recommend Reiner's services without any hesitation.

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$200,000.00

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Underground renos to surge with HST

August 15, 2009 Stephen Dupuis

The underground economy in Canada's renovation industry grew as if it were on steroids after the federal goods and services tax (GST) was introduced in 1991 and there's no reason to believe it won't grow as quickly after the HST kicks in on July 1, 2010. Unfortunately, that's not the only downside of the pending tax increase on this key strategic sector.

While the provincial government has substantially mitigated the impact of the HST on new homebuyers through the rebate framework, the renovation sector was left outside the rebate structure, compounding the sin of omission by the federal government when the GST was introduced in 1991.

According to a report released by the Canadian Home Builders' Association last week, the residential renovation sector accounts for some $53 billion in spending in Canada, roughly two-thirds of which is paid to contractors.

Provincially, Ontario homeowners spend about $20 billion on renovation with $14 billion of that through contractors.

Drilling down further on the Ontario numbers, the $14 billion is split roughly two-thirds labour and overhead, which is currently PST-exempt, one-third materials, which is subject to PST. The PST on materials works out to 2.6 per cent of total cost of a typical reno.

By applying the HST to labour and overhead, it's obvious that we are looking at an instant cost increase of 5.4 per cent (PST is 8 per cent) with no value added. The CHBA/Altus report calculates the impact of that increase to be $757 million and that's a huge number that has legitimate, professional renovation contractors rightfully discouraged.

As one contractor said to me when the HST was brought forward, "prior to the 7 per cent GST, I had clients who would ask if I would consider a 10 per cent discount if they paid cash. After the 7 per cent GST came into effect, clients changed tactics. They disliked the GST as much as anyone and would ask if they could pay cash to avoid it. Bingo! The underground renovator no longer had to give a discount for cash – henceforth the government would do it. Clients were now happy simply saving the hated 7 per cent. On July 1, 2010 that incentive to pay cash will jump to 13 per cent!"

Unfortunately, foregone sales tax revenues are just the tip of the iceberg as far as the problems with cash deals go.

Contractors operating in the underground economy are also avoiding everything from income tax to workers' compensation premiums to building permit fees.

A 2008 report by the Ontario Construction Secretariat estimated that the federal government lost between $225 million and $298 million in GST revenues annually between 2003-2005 due to underground activity in the renovation sector.

Meanwhile, both levels of government are losing upwards of $1.6 billion in income taxes, and this is all before the HST kicks in.

The CHBA/Altus Report points out many other pitfalls of harmonization, including the fact that the tax increase undermines the federal Home Renovation Tax Credit and the federal/provincial home energy retrofit programs.

The report further notes that the HST will likely reduce the volume of reno activity, costing precious jobs, while exposing homeowners to the liabilities and risk of conducting renos without a contract.

The simple solution put forward by the CHBA is to maintain the tax rate on all professional renovations, not just "substantial renovations" as defined under the GST, at the revenue neutral level of 2.6 per cent.

We're calling on federal Finance Minister Jim Flaherty to heed that call and urge him to use this window of opportunity to get the HST right from a renovation standpoint.

Stephen Dupuis is president and CEO of the Building Industry and Land Development Association. The views expressed are those of the president. Email: president@bildgta.ca.

Toronto Star

Couple remove RetroFoam headache at huge expense

1

Mathew McCarthy

Christine Rito stands in front of her Kitchener home with c ..

BY ROSE SIMONE, RECORD STAFF

KITCHENER — Christine and George Rito have bought themselves peace of mind, but at great expense.

Concerned about the health of their children, the Kitchener couple is spending up to $20,000 to have all the RetroFoam insulation removed from their walls and replaced with an approved alternative.

Their baby Jackson is five months old. Their son Ben is three.

A giant pile of bricks sits in front of their modest home on Pattandon Avenue in Kitchener. It’s part of the expensive process of removing and replacing the insulation.

The Ritos are among more than 700 families in Ontario who were shocked in February when Health Canada banned the use of RetroFoam. The product contains urea formaldehyde resin, prohibited under the Hazardous Products Act.

Health Canada ordered Breslau-based Enerliv Inc. to stop installing the product. Enerliv and RetroFoam of Canada, owned by Paul Weigel, have since filed for bankruptcy.

The concern is that urea formaldehyde can give off a gas that can cause health problems, in large doses.

Like many families, the Ritos put the insulation into their house under a federal and provincial government rebate program for energy-efficiency. Their house was built in 1954 without any insulation.

They thought they were doing the right thing, encouraged by the program that covered the $3,500 cost.

“We figured you couldn’t go wrong, Christine says. “But it went wrong.”

The federal government contends it bears no responsibility for the legal and health mess. It says Natural Resources Canada does not recommend specific products in its Eco-Energy program, and that property owners are responsible for work performed and materials chosen.

A class-action suit is being launched by Sutts, Strosberg, a law firm with offices in Toronto and Windsor. It claims homes with RetroFoam have been stigmatized and property value has been substantially reduced.

The Ritos are part of that lawsuit but it could take years to settle. A judge of the Ontario Superior Court of Justice has yet to determine if this case can proceed as a class action. The motion date has not yet been set.

Meanwhile, families are taking air quality readings. The Ritos have had a couple of test results higher than normal.

Levels of formaldehyde can go down with time but they figure it isn’t worth the risk.

“We just don’t want to take a chance,” Christine says. “If we didn’t have kids we would have waited but with having children this young, it’s not worth the risk of them developing asthma or other breathing related problems.”

The couple had just finished major renovations when news broke about the RetroFoam ban. “We were falling over with outrage,” George says.

Christine says a number of neighbours were planning to install RetroFoam. “Thank goodness they procrastinated,” she says.

Now, the Ritos are living in a construction zone again. There are two ways to remove the faulty insulation, which was injected into the walls: take out all plaster inside the house or remove all the bricks outside the house.

Removing the plaster would have forced them to vacate their home and would have ripped apart their new kitchen. By removing the bricks they can live in the house while the work is being done.

Enerliv’s president, Weigel, has said in interviews that he did not know the product contained urea formaldehyde resin. The product was in use in the U.S. and he obtained the rights to sell it in Canada from an American supplier in 2007.

He applied in April, 2007 to the National Research Council of Canada to have the insulation certified as meeting National Building Code standards. But the process is lengthy and certification is not required to sell building materials in the province.

With no red flags from the government, he went ahead and began installing RetroFoam.

The Ritos are upset that governments are not offering help or taking responsibility.

George Rito says he tried calling the office of Kitchener Centre MPP John Milloy but “no one has even come to look or has said they will go to bat for us … they don’t care.”

For their children, the Ritos feel they are doing the right thing in pushing ahead and removing the insulation. “This gives us peace of mind that it’s done, and it’s done right,” George says.