Thinking through the kitchen remodeling process

You may think setting up your kitchen and giving it a new look wouldn’t be much of a task, but it can pose a headache than you’d dare to imagine.

For how long do you plan to occupy the building?

You need to put into consideration how long you plan on staying. If you have plans of selling the house anytime soon, the remodeling of the kitchen should be done from an investment point of view with hopes of future returns in terms of real estate. Your spending should be done with the mindset of the estimated future cost on the sale of the house. However, if you plan to stay in your home permanently or for a long period of time, it is advised to redesign to get as much comfort as possible.

Type of Environment / Neighborhood

You also need to factor in your neighborhood. Do you stay in an upscale environment or is it a modest one? For example, if you decide to put up a very expensive kitchen setup in a middle-class neighborhood, you are most probably going to run at a loss whenever you decide to sell the house. Don’t over-remodel!

Be prepared for Surprises

In the course of remodeling, you are likely to encounter some unplanned expenses, especially in an older building. It could be out-of-date wiring lying behind the wall, or a rotten floor when you pull out the dishwasher caused by a leak you weren’t aware of. Hence, it is always safe to set aside some extra cash in the budget to handle such surprises.

Set a Scale of Preference

Write down a list of work to be done ranging from the most important to the least important. In Economics, this is referred to as the scale of preference. Noting down your priorities can help get things on top of your scale of preference done, even if unexpected costs hit your budget.

Beautiful kitchen design with custom brown cabinets and white quartz countertops

Make Decision on Payment Plan

A kitchen remodel can be paid for in various ways, but home equity still remains the most popular because its interest charge is tax deductible. There are other payment options too, such as taking out a personal loan or taking a loan against a retirement plan. When getting a loan, interest costs, and loan origination fees need to be considered. Deposits need to be made with contractors, and an upfront payment for materials need to be made to, so it’s important to know when the funding from the loan applied for will be made available.

Planning to move out during the remodeling?

Taking shelter elsewhere during the course of remodeling sounds like a good idea as it will relieve you of stress, but you also have to consider the monetary effect of getting another apartment or a hotel room, plus the cost of moving. However, if you decide to stay, you can set up a temporary kitchen in the house. But you should know, it also comes at a price.

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