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[quote=Anonymous]For all your property brothers fans - I've been watching & enjoying since I discovered the show last month but I have a fundamental question. With the larger renovations, like 100k+, does the value of the renovation proportionally increase the value of the home? I just watched an episode in which they proposed a 250k renovation on a 400k home, which was in a good neighborhood and it would have fundamentally transformed the home, but I have to wonder - what if the family unexpectedly needs to sell in a few years for whatever reason? Will they be able to recoup 650k to cover their loan? Or even just break even with whatever amount remains on their loan? I'm guessing that's a pretty big gamble.

Also, how do you pay for a 100+k reno? Is it part of the regular mortgage or are there separate loans for that? The families always just state their final number budget but that kind of assumes the bank is willing to fund any amount of renovation and I'm always wondering would the bank be willing to lend out that much if it won't proportionately increase the value of the home? Why would they lend out more than what the collateral is worth?

I wish the show was a little more educational about the risks and how they finance the renos! Although I am learning a lot about DIY options. [/quote]

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