The following is an excerpt from Cherie Barber’s book, Renovating For Profit.
So, we’ve come to the kitchen, which just happens to be the most important room in your home for adding value … no pressure! The heat is on because this room has so many elements and is heavily used every day. Given how hard this room has to work, it shouldn’t be a surprise that a well planned and executed kitchen will add enormous value to a home. Basically, this room is your money maker, according to bank valuers – it’s the one room they pay particular attention to (along with your bathroom). These two rooms also happen to be the most expensive to renovate, and rightly so. They have a lot of stuff in them!
For your kitchen, allocate a budget of no more than 2 per cent of your home’s current property value. Not what you bought the property for, but what it’s worth today. If you don’t have any idea what your property is worth, simply look at real estate websites for local comparable sales.
For example: if your home is currently worth $600,000, your kitchen renovation budget should be no more than $12,000, fully finished, inclusive of all materials, fixtures and fittings and trade labour. Everything, basically! If you’re disciplined enough to stick to this formula, you’ll greatly minimise your chances of overcapitalising.
Once you’ve set your budget, breathe easy … I’ve got some great money-saving ways to make your kitchen look great, without costing the earth. I’m all about maximum impact with minimum spend. And that doesn’t mean bad quality either. You should take immense pride in the quality aspect of any place you’re renovating. It is, after all, someone’s home.
Believe it or not, you can transform an entire kitchen for less than $2000. I’ve even done a fully finished kitchen makeover for just $991! See my kitchen reno on pages 124 and 125 for a kitchen that was transformed for just $2021. So I don’t want to hear any excuses, OK?
In with the new
The cost of a new kitchen can spiral out of control pretty quickly. It can balloon past $10,000 to $30,000, without you even blinking an eyelid. So, it pays to be a good researcher, or at least buy a book by a good researcher: me!
Three ways to get a kitchen installed:
1. DIY, and bring in specialist trades as needed.
2. Get a cabinetmaker to do most of the installation.
3. Hire a kitchen showroom company to handle the whole process for you.
Option 1 is the cheapest option, option 2 is middle of the road and option 3 will be the most expensive (at least double or triple the cost of option 1; but it may be the safe path to go if you’re completely clueless about construction).