Is Remodelling A Kitchen A Good Investment?

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When you’re making investments in your home, it’s essential to focus your attention on the right areas. Is kitchen Remodeling an intelligent investment, or would you be better off renovating other rooms in your home? Kitchen upgrades can significantly boost a home’s value, but there are a few things you should keep in mind.

But investing thousands of dollars into a complete kitchen transformation before listing your home for sale might not be the best investment. Unless your kitchen is extremely dated, dysfunctional, or damaged, the odds of you seeing a 100 per cent return on investment on a kitchen remodel is rare. However, giving your kitchen a mini face-lift can be enough to compete with other homes on the market without breaking the bank.

Types Of Kitchen Remodel

Remodelling magazine, an industry leader in tracking remodelling cost data, splits kitchen remodels into two categories: minor and significant, with major remodels broken down into mid-range and upscale, based on the extent of the project the quality of the finishes, and the time and money invested. We’ll dive into that data a bit more later.

Three factors can help you determine which scale of remodel is best for your home and your situation:

  • Home value: Your remodel should reflect the price point of your home. Does it make sense to install professional-grade appliances in a $200,000 home?
  • Local market: Are buyers in your area looking for brand-new kitchens, or would your home be the only one?
  • Budget: How much do you have to invest in your kitchen remodel without dipping too Much Into Your Home Equity?

Minor Kitchen Remodel

You work with much of the existing kitchen in a minor kitchen remodel, so you’re not gutting it, changing the layout or moving walls. Instead, you might replace cabinet fronts (but keep cabinet boxes), add new hardware, upgrade to granite or quartz countertops, get a new set of matching appliances, repaint, or put in new flooring.

Remodelling magazine puts minor kitchen remodels under the cost category of “midrange,” due to its limited work scope. At MJS Construction Group, we have the best home builders selection to make your house a dream come true.

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Major Kitchen Remodel

In a midrange central kitchen remodel, you’re likely overhauling the whole kitchen. You could be moving walls and rearranging the layout to improve functionality. You might add an island, semi-custom wood cabinets, energy-efficient appliances, a standard stainless steel sink and new flooring. The final touches might include freshly painted walls, trim and ceiling.

In an upscale central kitchen remodel, you may take many of the same actions. Still, the finishes will be higher quality — think top-of-the-line custom cabinetry, stone countertops, high-end appliances, and imported ceramic or glass tile backsplash, an under-mount sink, a faucet with water filtration, and upgraded lighting, which could include general and task lighting, as well as undercabinet LED lighting. The flooring material will be tile, wood-look tile or wood.

It’s Important to Know Your Neighbourhood

Are luxury upgrades the best choice for your kitchen, or would you be better served by mid-range upgrades? The easiest way for you to determine this is to look at comparable homes in your neighbourhood. Find out what type of kitchen upgrades are standard in your area. This will give you a clearer picture of what buyers are looking for.

If you make luxury upgrades in a neighbourhood where mid-range renovations are standard, you may not see a return on your investment. It’s best to research your area before you make any renovation plans.

Minor and Major Upgrades Yield Different Returns

If you make minor upgrades to your kitchen, it’s likely that you’ll see a total return on your investment. While you’ll also see a return on major upgrades, you may not earn back every cent that you spend. These upgrades can be expensive, which makes it difficult to recoup costs.

This doesn’t mean that significant upgrades are a poor investment. It can be challenging to sell a property that doesn’t have a recently upgraded kitchen in some areas. Take the time to assess your kitchen and determine what sort of renovations it needs.

There Are Many Ways to Cut Costs

You’re more likely to earn back the money you spend if you can keep the cost of your kitchen remodel down. Thankfully, there are all kinds of ways you can reduce what you spend. For example, instead of replacing your kitchen cabinets, you could paint or refinish them. Keeping your appliances in the same position is also an excellent way to keep costs down.

If you’re able to stay within a budget while you remodel your kitchen, you can expect to see an impressive return. Don’t let the cost of your kitchen renovations spiral out of control. Set a reasonable budget and work to stay within that budget.

It’s Smart to Work with Professionals

While you can save money by handling some renovations yourself, you’ll want to leave a significant kitchen to remodel to experienced professionals. Professionals will obtain the proper permits and complete the renovations perfectly.

Working with professionals is one of the best ways to ensure that your property will pass a home inspection in the future. Although hiring professionals costs more, you’ll likely find that it’s worth the cost.

Kitchen remodelling projects can be an excellent investment. If your home has a dated kitchen or is in poor condition, now is a beautiful time for a renovation. Learn more about your options for kitchen upgrades and decide how you want to proceed.

Things to Consider Before Remodeling Your Kitchen

Determine what you wish to achieve with your renovation

Kitchen remodelling is about more than just aesthetics. You can also focus on better utilization of space, add extra functionality or integrate your kitchen with other areas of your home. Determine precisely what you want to achieve before you start planning your kitchen remodelling project. This will help you to streamline the renovation process and ensure everyone involved is on the same page from the offset.

Set a realistic budget

Before you begin remodelling your kitchen, it’s essential to consider your budget against your property’s value. There’s no point in investing $20,000 in a premium new kitchen if your property is only worth $200,000 – you won’t get your money back. Equally, if you remodel on a low budget but your property is worth upwards of $500,000, you could end up devaluing your home.

Do your homework and try to arrive at an estimated cost before you go out and start buying stuff. Once you understand precisely how much you can invest and your return on that investment, you can begin designing your dream kitchen.

Plan your new kitchen appliances carefully.

It’s common for people to leave appliances to the last minute when planning their kitchen remodelling. This may mean you run out of budget or face unexpected costs, prompting you to opt for lower quality products. It’s essential to plan appliances carefully, as going for lower quality could end up costing you more further down the line.

When looking for appliances, consider:

  • Quality and longevity
  • Energy efficiency
  • Size
  • Features and technologies
  • Flexibility and ease of use

There’s no hard and fast rule for how much you should spend on new kitchen appliances. The quality and range of appliances you go for will depend on your overall budget. Built-in appliances are an extremely effective solution. They fit perfectly within the dimensions of your kitchen and give a more seamless, elegant finish. As a general rule, you should leave about 20% of your budget for new appliances. 

Decide how you are going to carry out your plan.

Doing it yourself is a more cost-effective approach to kitchen remodelling, but it is not without risk. It is, therefore, important to map out precisely what is required before you start your project. Think realistically about how much you can do yourself and what will require a professional such as a kitchen designer or a contractor. If you want to change your kitchen layout, you might need to carry the plumbing or the electrical and gas fittings. It is best not to attempt these on your own and instead seek the help of a professional.

Understand the critical elements of excellent kitchen design

According to our research, the most desired kitchens are connected with the dining room and include a central kitchen island. So, if you have the space to open your kitchen out and turn it into the hub of your home, it’s well worth the investment. If you decide to integrate your kitchen into the rest of your dining or living room, consider materials aligned with the rest of the space.  

It’s all in detail.

Small details make a big difference. From a backsplash or tiles to the faucet, make sure you consider every element of your new kitchen design. It’s also important to consider the material you choose for things like your kitchen island, breakfast bar or countertops. Materials such as Caesarstone is a good option. They are stylish, easy to clean and will stand the test of time.

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Decide on your colour scheme.

Neutral colours are always best, especially if you’re planning to put your property on the market soon after renovating. Light-coloured kitchens, especially white kitchen cabinets, are high in demand as they appeal to a range of tastes and appear clean and bright, which is a crucial concern for prospective buyers.

If you’re remodelling your kitchen because you feel like a change, you have more room to get creative rather than for selling. Decide on the overall look you’re going for. Have you always longed for an opulent, Italian style kitchen, or do you prefer something more modern and on-trend? The style you want will dictate the colour scheme. 

Decide on the best material for your work surfaces.

For a more sophisticated look, opt for wooden, marble or granite work surfaces. Wooden surfaces add character and charm without breaking the bank. Shop around for the best deals on the market or visit your local lumber yard.

Consider how best to use the space.

A butler’s pantry is high in demand as it hides a multitude of sins. As a general rule, the more storage space you have in your kitchen, the better. This is especially true for those with large families. If you have space, it’s definitely worth the investment. For those with less space, consider how you can effectively make the most of it. You can also check out our tips on how to design a small kitchen space or how to make your tiny kitchen look big. 

Save space by having built-in appliances that fit seamlessly into your new kitchen design. Good quality built-in appliances should have a sleek, modern appearance while containing the latest technology to make your everyday life easier.

If you’re short on space, a slimline dishwasher is a perfect solution. You can also save further space by opting for a combination washer/dryer instead of two separate machines. 

Design your space around your appliances

Thoroughly research your choice of appliances such as oven and hob, fridge, dishwasher, and microwave. The dimensions of appliances will play a large part in your kitchen’s overall look, especially if you are going for built-in appliances. Ensure all appliances fit perfectly in the space provided to avoid any unsightly gaps. For a seamless finish, consider integrated appliances that complement your kitchen design.

How Can You Save Money on a Kitchen Remodel?

Kitchen remodelling budgets have ballooned over the last several years. Not only have kitchens gotten more significant over time, they’ve also gotten fancier. Even modestly priced homes are increasingly demanding luxury features.

While you can include special features on a smaller budget, you may need to find a way to be frugal.

Shop smart

Start early and take your time to find bargains. First, research products so you can evaluate quality. Next, look online and at discount outlets for deals. Keep in mind that buy in-stock merchandise usually costs less. Finally, if you find a product you like that’s out of budget, look for similar styles at less expensive retailers. You could also try shopping at reuse centres and salvage stores.

Keep your current layout.

Anything that involves moving plumbing, gas, or electrical will hike up your budget. To cut costs, get a design that preserves your existing kitchen footprint or only slightly changes it. It is possible to move some appliances without moving their hook-up. For example, a dishwasher can usually be transferred to the other side of a sink.

Get free professional services.

CliqStudios offers free professional design services. Let your designer know that cost is a priority. They will use their expertise to help design your kitchen with cost in mind. The professionals at lighting, appliance, tile and countertop stores can also be valuable sources of advice.

Do-it-yourself or Manage-it-yourself

Even if you don’t have construction or DIY skills, you might consider managing your project as your general contractor. Being your general contractor could save you up to 30 per cent on your entire remodelling project.

Save on countertops

To give some relief to your budget, consider using single thickness countertops or opting for laminate. Choose less expensive countertop materials to save money. If you’re selling soon, keep in mind that many buyers look for stone surfaces like granite or quartz.

Is Remodeling My Kitchen a Good Investment?

“For potential buyers, the kitchen is the room that can make or break the sale,” writes Kristen Hampshire at HGTV. “An upgraded, attractive kitchen can make your home irresistible.”

Kitchen remodels continue growing in popularity. For one reason, they often give a huge boost to home resale value. In 2019, a $66,000 kitchen remodelled recouped an average of 62% of the cost upon the house’s sale. A smaller $22,000 remodel netted an average return of 80%.

More minor can have more significant ROI because they tend to aim at solving functional problems. They are often designed with more versatile styles. More expensive projects tend to place a high priority on personal style and aesthetics. Although potential buyers will care that the plumbing and appliances work, most will not need a highly ornamented kitchen.

Unless your goal is to sell your house immediately, it’s best to design a kitchen you’ll love. Ultimately, your kitchen is more than an investment. It’s where you provide for and nurture your family. The kitchen is where you entertain friends and guests. It’s the living and breathing hub of your home, where thinking, conversing, and resting happens.

If you’re living in your home for the years to come, then pick out what you want and enjoy it. The Research for Cooking & Kitchen Intelligence found that 40% of homeowners say they wish they had spent more money on their kitchen renovation. Their biggest regret was not adding more organizational features. 

A Kitchen Renovation Can Improve the Functionality of Your Home

Remodelling your kitchen can be highly beneficial if you’re planning to list your home shortly, but it can also be a wise decision if you don’t have plans to sell. The kitchen is typically one of the most frequently used rooms in a home. A newly-upgraded kitchen will be easier to cook and entertain in.

There are many kitchen upgrades you can make that would improve your overall quality of life. Smart appliances are a prevalent investment. Adding more outlets can make it easier to keep devices charged. It’s likely that you’ll greatly appreciate the upgrades you make.

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