How much can a Kitchen Renovation Increase Your Home’s Value in Australia?
Answer: A kitchen renovation can have up to a 150% return on investment in Australia, however this is dependent on a variety of factors including market conditions, quality of work and design.
Knowing how much a Kitchen Renovation will increase your home’s value can be a tricky question, however today we will share the things we here at Kitchens Perth look for in order to give our clients a strong return on investment in their kitchen renovations.
Why does the kitchen have the best ROI?
A kitchen renovation is typically considered one of the best internal renovation options for increasing a home’s value due to its both practical and social applications. A kitchen acts as the centerpiece of the home, allowing owners to easily and quickly prepare good quality meals through an ergonomic and effective kitchen design. This in combination with a strong, timeless design solidifies the space as the hub of the home.
Practical and social applications for the kitchen are crucial factors that make kitchens beloved by many; however, it is the potent emotional connection which is conveyed to possible homebuyers that gives kitchens their return in value. Potential home buyers look at a fresh kitchen renovation and imagine all the amazing benefits that come with it, children unwinding at the breakfast bar, talking to the cook about their day, social occasions with neighbors and friends, cozy and relaxing romantic dinner nights with their partner.
A strong emotional connection can be simply established in a new kitchen renovation as-long as a variety of critical design steps are followed:
- Strong principles of form follow function.
- Long lasting timeless design
- A complimentary design to the rest of the house
What determines the return of investment in a kitchen renovation?
There are a variety of factors that can directly impact on the return value, the most important being the market. When the market is strong houses are valued well, this is where you will most likely get your highest return on investment. In a competitive market a kitchen renovation of $50,000 can increase a property value by over $150,000 in the right market.
Although there are reasons to renovate in a weak market, (selling competitiveness and price of services reductions) it is best to stick to a budget and only invest what you can comfortably pay off.
A timeless & relevant design is very important in order to regain investment value upon your kitchen renovation. A kitchen renovation must be tailored to both the client and the house it is situated within; a true timeless design complements the house while pushing it in a compatible direction for the future. For example, if you were one of the many people in Australia with an older federation house, you would not design a hyper-modern kitchen, but one with desirable contemporary elements with a strong connection to the house, this can be done through cabinetry, finishes and so much more.
Here at Kitchens Perth, we strive to give levelheaded design considerations to our clients who are looking for a strong return on investment. That is why in our design process we go over these key considerations and many more to ensure that the kitchen renovation increases the house’s value as well as being personalized for the clients’ needs.
