Generation "DIY": Young Quebeckers are Hands-On, but are Blowing their Budget in the Process

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 specialist. 
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
        year
    --  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.

Data collection:

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 
maxime.illick@citoyenoptimum.com

SOURCE: Capital One

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/June2013/11/c7012.html

CO: Capital One
ST: Quebec
NI: FIN ECO ECOSURV 

-0- Jun/11/2013 11:30 GMT


 
Press spacebar to pause and continue. Press esc to stop.