Don't let the title fool you: the new reality TV show House Poor isn't another of those Extreme Home Makeover-type of shows full of over-the-top efforts to make you cry.
No, House Poor, which premiered Sept. 28 on the HGTV cable channel stays true to its practical, sensible, Canadian roots.
Couples on the show could be your middle-class neighbours who live a little beyond their means, carrying credit-card debt and dining out too often. They range from first-time homeowners who paid more for their home than they can afford, to those who bought a fixer-upper without realizing just how much repairs might cost.
They make a decent living, though, so their bad financial habits only catch up with them when they try to renovate. All share a failure to budget that combines with inexperience in home renovation costs and a penchant for luxury to stall their plans.
That's when they call in the House Poor team for help. Certified financial planner Suzanne Schultz and home contractor Frank di Leo help one Canadian couple in each of the show's 13 episodes to renovate not only their home, but their finances. Schultz has $10,000 to offer each couple toward their renovation bills. But the money isn't automatic.
"I definitely don't see it as charity," Schultz says. "I'm putting them on a tight budget."
Before Schultz gives out a cent, she delves into each couple's income and spending. Couples on the show invariably have little idea where they're spending, so she has them break it down. Every family also had some sort of "dirty little spending secret," such as gambling or trips to the salon.
Using her 15 years of experience, Schultz shows each couple where they are wasting the most money -- typically on toys, tools and takeout. She even discusses how they might supplement their income through career choices. Her tips can easily translate to savings for viewers who may be making the same mistakes.
"We want it to be entertaining, but we also want it to be educational to viewers' everyday lives," Schultz says.
She then challenges the family to show they can use her advice to get their financial house in order before they resume renovating. Depending on how well they stick to their budget, she can award them up to $5,000 toward renovations.
From there, it's up to di Leo to help the couple make renovation choices that stay on budget. If the couple fails to keep their renovation budget under $10,000, they risk losing part or all of the second $5,000 Schultz has to give.
"We're not giving them the money unless they actually follow my advice," she says.
This is where the show gets really interesting, as couples with big ideas negotiate real-life solutions with di Leo. With years of experience as a carpenter, contractor and designer, di Leo comes up with creative ways to keep renos on track.
Sometimes, this means vinyl flooring in the kitchen instead of hardwood and ditching the expensive pot lights. Or adding some of the couple's own elbow grease to reduce labour costs.
Despite this, some couples just can't rein themselves in, missing out on some of the possible reward money. But don't expect any hissy fits. "Usually, they're just disappointed in themselves," Schultz says.
"The rooms we've done, every single one of them was beautiful," Schultz said. "And people always had to cut back to get them. So everybody can do it."
-- Canwest News Service
Tips on planning your renovation
Planning your upgrade: Can you afford your reno? A $10,000 renovation is a daunting financial prospect, but there are ways to make it affordable: Canwest's DIY Chick Yvonne Jeffery offers these tips:
First, assess your budget. How much can you save toward your reno?
Next, cost out the materials and labour involved in the reno -- every detail, then add 20 per cent for the unexpected.
If your finances are in good shape, talk to your financial institution about a home equity-linked line of credit or renovation loan.
Consider six- or 12-month no-interest store plans only if you have the self-discipline to save or make payments monthly so that everything can be repaid before the term is up.
Don't try to save money by paying contractors in cash for a "better" deal. This offers you zero protection against poor workmanship and materials: get your contract in writing.
Work only with people who understand your budget and won't push you for expensive extras.
If you're working with a contractor, limit the changes to the reno plan after work has started: changes cost big bucks.
Consider doing part of the work yourself only if your skills and time are up to it: fixing a mess always costs more than doing it right the first time.
