The Adjusted Cost of a Kitchen Remodel: A Look at ROI
Are you ready to remodel your kitchen? Your wallet is, there’s a high return on investment on the cost of a kitchen remodel. Learn just how much.
As the number of listings has dropped, the cost of homes is rising all around Toronto. This means it’s a great time to get a high return on investment for your kitchen remodelling, a notoriously good place to invest your money as a homeowner. If you’re thinking about the real cost of a kitchen remodel, you need to assume that you’ll lose 20% if you buy all brand new elements and pay to have them installed.
Here are four ways to help mitigate that ROI so you get a little more than you paid for in the end.
1. Decide What You Need
Before you start taking a sledgehammer to your walls, you need to start thinking about what work you need to have done. There are a wide variety of things that go into a kitchen remodel. Some people spend their money trying to collect their ideal appliances in advance of a remodel while others save for one big purchase.
Make a list of the problems you have with your kitchen as it is now. If you’re unhappy with cosmetic issues, that’s going to be less costly to fix than structural or functional issues. Repairing a gas or water line that is going to cost you a lot more than a new coat of paint.
Don’t think only about which investments are going to bring you the biggest return when you’re trying to fix your kitchen. Think about whether you’re looking to build a home to stay in for a while or one that’s going to be easy to sell in a few years. Deciding what to build and what to repair should have something to do with how long you’ll live in your space.
If your kitchen is part of the family’s day to day gathering and cool down space, then you need to consider what working on your kitchen is going to do. By taking your kitchen out of commission, you’ll make it harder for your family to have that space and time together. There are costs that are material and less material that you need to consider.
2. Costs Versus Return
When you’ve decided that the remodeling of your Toronto home is to help build value, then you need to balance the costs with the returns you’re hoping for. The costs of new cabinets versus a new microwave are going to be different. If you seek out refurbished or used elements, you could save a lot of money.
If you’re considering replacing your cabinets, you could get yourself a factory model or a refurbished set of cabinets for less than you’d pay for new ones. Think about whether you need to replace your cabinets in general. If they only need a new coat of paint or refinishing, you could save thousands.
When you’re looking to put in some new wood flooring, they’ll cost you over $5,000. If you decide to choose ceramic flooring instead, you’ll be able to spend less than half of that. The materials you choose make a big difference when it comes to how much you spend.
Reclaimed wood is a great way to build a unique and strong kitchen table. Getting a piece of reclaimed or damaged granite is a good way to save money and a way to get something unique.
Each of these elements is going to bring a different return. When you buy good materials, you see a higher return than you would for cheaper materials. However, unless you get all reclaimed or used materials that you install yourself, you’ll lose a percentage on what you spend versus what you get.
3. Account For Issues
When you’re calculating how much it’s going to cost you to do this job, you’ll come up with an estimate that includes materials, labor, and incidentals. Those incidentals can be a real pain in the neck if you don’t account for them in advance.
It’s recommended that you add around 25% of your budget on top of what you anticipate spending. This ensures that if something comes up, you’re prepared.
You could pull back a piece of floorboard to find that you’ve got a slow leak or some electrical work that’s fallen apart. If you’ve accounted for only the cost of the specific repairs you’re doing, you won’t be able to deal with these problems. If your estimated cost is $5,000, then you need another $1,250 on top of that.
While it might stretch your budget some, it’s vital to have some room to move when you’re trying to afford your new kitchen. If you spend too much and you’re looking to get a return, you’ll put too much pressure on yourself for that return and stress out. Make sure you’ve got room to move.
4. No Need To Splurge
While you might be the type of person who is particularly sensitive to an upsell, you need to keep yourself from getting out of hand. You don’t need to splurge on every single element of your kitchen. There are some things that you could save money on or go used with.
Think about what you use your kitchen for the most. Not everyone loves to cook but instead uses their kitchen to socialize in. This means you should be spending much more on your seating than on a brand new stand-up dough mixer.
If you like to come up with new dishes in the kitchen, consider splurging on a high-end stove. Make up the money by saving on cabinets and refinishing the ones you already have. And think about which materials could be cheaper to install and maintain.
The Cost of a Kitchen Remodel is Up To You
When you’re trying to calculate the cost of a kitchen remodel, think about which elements are really up to you. Even if you’re not handy and need to hire people, you could get materials that are high quality and still don’t cost too much.
For more tips on what you can handle on your own, check out our guide for more info.