Done correctly, kitchen renovations can add significantly to the resale value of homes.
“It could increase the value of the home by 4-6%,” said Tom Storey, team lead at Royal LePage Signature Realty. “It’s really just a return on the money you’re putting in. If you’re putting in $50,000, it could get you $75,000-80,000 in pure ROI dollars, but it has to be done correctly. It’s not like just any renovation can add value to your home. If you do it the right way and don’t use cheap materials, it could make a difference. What a lot of contractors will tell you is to spend extra money on the things you will touch every day, like a doorknob, tap, fridge, because you will notice those things more as you live there.”
It’s easy to break the bank on a kitchen renovation and that might limit how much can be added. Andrew Hibbs, owner of Edmonton-based Kitch, noted that, much to the frustration of homeowners, there’s a substantial gap between expensive, tailor-made kitchen products and standard Ikea systems that can be bought off the shelf.
“The kitchen is the hardest to redecorate because you’re not just throwing down a rug. Having an older home or a newer home with new cabinetry that has a current look is the key to selling your house for top dollar, and selling it quickly,” he said. “More people are of the opinion that they don’t want to go full custom shop because the timelines are longer these days and price points creep up every time they want to add another nook and more detail.”
Kitch’s cabinetry and shelving are made for inexpensive boxes, which Hibbs says reduces both price and delivery lead time. Moreover, a good kitchen renovation, which would typically run $20,000-40,000, can even double the value of the room.
“I would say that for any kitchen reno, whatever you put into the kitchen you’ll probably see a double return on it, at least,” said Hibbs. “If you put $30,000 into your kitchen, you should see $60,000 back on the sale end, but it also depends on the rest of the property too. In general, you double your money.”
When you flip houses, you are not usually intending to live in the house; rather the strategy is to sell the property as fast as you can so as to avoid paying taxes and other expenses on the property. While there will obviously be initial costs that you will need to budget for, house flipping can be done with few resources and little experience.
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If you’re a newer house flipper, you have probably heard about the 70 percent rule. Here’s your guide to the investing rule that can prevent you from spending too much money on an investment.
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