Thinking of remodeling your kitchen? You are not alone. Kitchen remodels are the most popular home renovation in readiness for sale, accounting for 78% of projects last year.
It makes sense when you consider the fact that your kitchen is likely one of the most-used rooms in your home. It’s the site of cooking, eating, food preparation, family dinners, and as of late the homework spot.
But a kitchen renovation isn’t a small project by any means. In fact, the national average of remodeling a kitchen is around $23,166, or at about $715 per square metre.
But there is definitely a range when it comes to expected spends or a kitchen remodel. Kitchen remodel projects can range on average from $12,545 to $34,423, depending on the size of the kitchen, materials needed, the level of finishes, cost of appliances, and if any other major spends are expected, such as installing new flooring or purchasing new appliances. Materials usually account for a majority of your budget, so keep that in mind if you find yourself having to cut costs.
Help – I don’t have that budget range!
If you would like to stay at the lower end of this range, consider refinishing your existing cabinets, keeping the original footprint of the space, and incorporating your old appliances into the design. Buy materials such as tile and hardware from a wholesale retailer or do some of the work yourself. Though, you will need professionals for the plumbing and electrical.
But if you plan to knock out walls, install custom cabinetry, and finally splurge on that high-end ranges, then expect to spend the big bucks.
You’ll also pay for demolition unless you feel you can do it yourself. Though with a kitchen the margin for error is high. If you are designing a completely new space, you may also hire an architect.
Before you begin a large-scale project like a kitchen renovation, you’ll need to set a budget. This area of the house can be tempting & easy to bust your budget. Chances are, some unexpected costs will inevitably pop up that you’ll need to cover. For example, electrical switch boards to ensure the correct circuits to run your appliances safely.
Start by creating a budget of how much you can spend. Say your home or apartment is worth $400,000. A good, middle of the road budget for a kitchen renovation would be around $10,000 – $15,000. Then decide how you’ll fund this – from cash flow, from your savings, maybe your rainy-day fund.
Regardless, be sure you have the bulk of these funds set aside before you begin work in an easily accessible, fairly liquid account.
When you pay contractors and other workers, you’ll likely pay a portion of their works cost up front (usually 30%) and then the rest upon completion of the job. So, if you are paying out of cash flow, be sure to keep your timeline in mind.
And before you jump headfirst into your remodeling project, be sure to do your research. After all, you want to make sure you are getting a return on your investment (ROI), especially considering the cost of your average kitchen renovation.
Experts suggest spending between and 3 – 8% (with the higher percentage for luxury homes) of the home’s value on a kitchen renovation to ensure you do not negatively impact resale of your home.
This will give you the greatest potential for ROI on your investment.
It is really helpful to get advice on this from your real estate agent who will be able to give you a fuller picture of the market in your area, as well as what type of renovations will procure the best ROI.
Contact us today if your pondering to update that kitchen!
(Note: The estimated costs in this article are based on kitchen renovations paired with live pricing data from online quoting engines.)