Generation "DIY": Young Quebeckers are Hands-On, but are Blowing their Budget
in the Process
New survey from Capital One Canada finds Quebeckers would rather renovate than
move this year.
MONTREAL, June 11, 2013 /CNW Telbec/ - A new study released today by Capital
One Canada shows home renovations can be a risky endeavour for young
Quebeckers (18-34 years) who are the most likely to get themselves into money
troubles compared to other age groups when faced with a renovation project.
Working with CROP Research in advance of the upcoming July 1 moving day, the
study found over a third (37%) of Quebeckers spend more than they planned to
when renovating, with young Quebeckers admitting to being the most likely
(39%) to go over budget, with almost one-fifth (17%) having no budget at all.
This higher-than-average propensity to overspend is likely linked to the fact
that Generation Y renovators tended to have the highest budgets ($7,380 on
average, almost twice the amount of renovators aged 35-54). A lack of proper
skills could also be the culprit: even though only 5% of young renovators
would call themselves "experts," an overwhelming 68% of those planning
projects in the next 12 months will do the work themselves, opting not to hire
A misguided tendency to "DIY" without the necessary skills or experience can
be a budget-busting combination.
"Although it might be tempting to try to save money by doing everything
yourself, it's important to keep in mind that hiring a professional for the
more difficult renovation tasks will actually help you save more money in the
long run," said Brigitte Poitras, home staging expert.
Although the majority (85%) of Quebeckers consider home renovations to be a
positive investment, there are clear indications that they may also be a
financial burden for the province's younger generation of renters and
homeowners. Almost one-quarter (24%) of Quebeckers aged 18 to 34 who have
renovated their home in the last year admit that the experience caused them to
spend beyond their means, compared with 19% of those aged between 35-54 and
only 8% of renovators aged 55 and over.
"While it's a positive sign that young Quebeckers are choosing to invest in
their homes, it is disconcerting that they are having so much trouble setting
a budget and sticking with it," said Pascal Bricault, Director, Capital One
Canada. "When you compare their behaviour with that of their parents'
generation, it is clear that they face a significant learning curve for how to
properly budget for and plan a home renovation project."
Quebeckers listed credit cards with no annual fee (27%), cash rewards (22%)
and fraud protection (22%) as those that are most beneficial for their home
renovation projects. When it comes to financing their projects, a quarter of
home renovators aged 18 to 34 planned on using their credit cards.
"In order to reap the full benefits of credit card rewards, it is imperative
to use a card responsibly," said Mr. Bricault. "My advice to younger people
planning a home renovation project is to only use a credit card to finance
their project if they have enough money saved to pay off their balance in full
by the due date to avoid interest charges."
Other key study findings:
-- Outaouais is the region in Quebec with the highest number of
planned renovation projects in the next 12 months (37%),
closely followed by Estrie (36%) and Mauricie (34%).
-- Saguenay residents spend the most on average for home
renovation projects ($5,446), closely followed by Estrie
($5,441) and Montreal ($5,231). Outaouais renovators spend the
least on average ($3,166).
-- Cosmetic renovations like indoor painting (49%) and curtains
and blinds (26%) were among the most popular home renovation
projects carried out by Quebeckers in the last 12 months. When
it comes to more intensive renovations, the most popular
projects were flooring (27%), the kitchen (20%), patios and
balconies (19%), and the basement (17%).
-- While the bathroom was the area of the home most targeted by
Quebeckers who renovated in the last 12 months (22%), the
kitchen is overwhelmingly the space that the highest amount of
respondents (42%) would renovate if they had $10,000 to spend.
-- 27% of Quebeckers plan to pursue home renovations in the next
-- Young (18-34-year-old) Quebeckers face the most challenges
related to financing their home renovation projects, with
one-quarter getting into financial trouble.
-- The myth of moving day? Only 4% of Quebeckers plan to move on
July 1, and 83% of Montrealers intend to stay in their current
residence over at least the next six months.
Online data collection took place from May 16 to 24, 2013 via web panel.
A total of 1,423 questionnaires were completed among Quebeckers.
Weighting and representative nature of the sample:
The results were weighted so as to reflect the distribution of the adult
population in Quebec according to the gender, age, administrative region
(Saguenay-Lac-Saint-Jean, Estrie, Outaouais and Mauricie/Centre-du-Québec),
mother tongue and level of education of the respondents. In addition, a series
of questions drawn from Panorama (3SC), the major CROP Research annual study
on consumer values, were added to the questionnaire. This allowed CROP
Research to weight the sample according to the personal values of respondents
based on a probabilistic sample.
Finally, please note that due to the non-probabilistic nature of the sample,
calculation of the margin of error does not apply.
About Capital One
With offices in Toronto and Montreal, Capital One has offered Canadian
consumers a range of competitive MasterCard credit cards since 1996, when the
company first introduced the Platinum MasterCard in Canada. Capital One Canada
is a division of Capital One Bank, a subsidiary of Capital One Financial
Corporation of McLean, Virginia (NYSE: COF). Capital One believes in
empowering Canadians to take control of their finances through programs and
resources like Understanding-Credit.ca, Credit Education Week Canada and the
Capital One SIFE Financial Education Challenge
Maxime-Elisabeth Illick Citoyen Optimum T 514 282 4832
SOURCE: Capital One
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-0- Jun/11/2013 11:30 GMT
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