The kitchen is usually one of, if not the main focal point in a home. When it comes to renovations, kitchen remodelling tends to have a greater impact on the overall value of a property, than changes made to any other room. It’s not a job you want to get wrong. As kitchen remodelling has become more and more popular across Toronto, owners have been presented with an increasing variety of interesting options, each with their own price tag attached. Knowing how much to spend on your renovation is key to maximizing the value you get from it.
How to Work Out How Much To Spend On Kitchen Remodelling
You will already have an idea of how much money you can actually get your hands on for your kitchen remodelling project, whether you’re planning to use your saving or take out a loan. If you intend to do the latter, make your calculations using the total cost of the loan, rather than the amount you borrow. Once you know what your absolute maximum spend is, you’ll need to make the following considerations:
- Consider the Overall Value of Your Home – Your budget should represent between 10-15% of the overall value of your home. If you have recently had a valuation of $500,000, for example, you should aim to spend between $50,000 and $75,000 on your remodelling project. Spending more is likely to mean a waste of money; spending less could harm the value of your home.
- Set Some of your Budget Aside for the Unexpected – Kitchen remodelling is a major project which can go wrong in many ways. It’s advisable to put around one-fifth of your budget to one side for unexpected costs, such as replacing wiring, delays, accidents, replacing uncovered rotten wall or floorboards etc.
- Divide The Remaining Budget Into Items – Remember that your costs are not limited to what you see in the showroom. You should set aside at least 20% of your budget for labour costs, and up to 7% for transportation costs, if you live in a rural area away from Toronto, where materials, units will have to be transported and contractors will have to travel to. Only around 35% of your budget should be spent on cabinets, plus a further 20% on appliances. If you are having new windows, set aside 10% for this. Allow for an extra 10% to be spent on fixtures and fittings.
- Be Responsible – Don’t try to do too much with your money. Try to over-budget wherever possible. It’s easier to spend any surplus you may have at the end of the project, than it is to find the extra dollars you might need if you try to push your money too far, and end up running out.
- Know Your Priorities – Even if you find yourself comfortable with your budget, it is worth making a priority list, as it will help you to decide how to spend any left over money. If you’re struggling to get money together, you might just want to focus on the most important items and then leave others until a later date. Ask yourself what you really need – is it new appliances? New cabinets? New fittings? Take a look at the main reasons for going ahead with your project, plus what you hope to gain from it.
The last thing to remember about your project is not to compromise too much. You may be tempted to take on work that you are not confident in doing, or settle for materials you don’t really like. Doing so could even end up costing you money in the long run. It’s a much better idea to wait until you can get the job done properly.