The industry experts will say that a kitchen remodel yields the highest return on investment of any room in the house. The problem is when you are doing any renovation project, especially a kitchen remodel, it is very easy to get carried away and go way over your estimated budget. The average kitchen remodel costs somewhere around $40,000 but can be as high as $100,000+. So how do you know if you are over spending on your kitchen renovation?

The first step is to take a look at comparable houses in your neighborhood. Try to determine the value of your house relative to the other houses in your neighborhood. If the average house in your neighborhood is worth $300,000 putting in a $100,000 won’t produce the return on investment that a $20,000 kitchen would. So it is important to know the value of your house and the average selling price in the neighborhood. While a high dollar kitchen may work well for you now, it may end up costing you money when you go to sell the house.

Take the time to research contractors and materials. Labor is going to be one of the most expensive components of your kitchen renovation. Price it out to several different reputable contractors and try to bundle projects were possible to maximize the savings. Any work you can do on your own will just add money to your bottom line. Depending on how high end you are planning on going, the cabinets and countertops are going to be the next biggest investment (really high end appliances can also be up there). Shop around for your cabinets, and don’t snub your nose at lower priced cabinets. Focus on the features and the quality of materials. Ironically, some of the lower priced cabinets will have the same, if not better, quality as the name brand (the difference is, you are not paying for the high overhead).

When all else fails, call in an expert. There is nothing wrong with calling in a real estate agent to get an idea of what your house is worth and what a remodel will do to the value. A good real estate agent will be able to tell you a ballpark of what you should spend to stay within the price range of your local area.

So before starting your kitchen remodel, take the time to do some research, come up with a solid plan, and stick to your budget. If you can do that, you will not only get a great kitchen, but you will also add value to your house.



Sell House Quick

I am a property developer and i would like to look for cheap property abroad. I will consider any country so if anyone knows any websites that would be of interest to me, then i would be very grateful.

Real Estate Professionals

A landlord has the property next to my semi detached and has got workers in to redo it all up. from scratch they drill away and bang and saw all day long and carrys on until about 7-8 at night!!Its driving me mad and is really heard through the walls and no matter where I go in the house I cant get away from it !! What can I do legally about it? Its horrible hearing loud drilling sawing etc.. all day long and part of the evening

Passive Income

Renovating your home is a stressful process but it is a great way to improve its appearance and make it a more enjoyable place to live. A home renovation can greatly improve the way you and your family live, and once it is completed it will increase the value of your home. Renovating your home is probably one of the biggest financial investments you will ever make but if the financing is properly structured you can save thousands of dollars in interest charges. There are many different options available when it comes to financing a home renovation and we will examine three different options to see which is the most cost effective.

One alternative that many homeowners use for financing a home renovation is their credit cards; this is probably the most expensive way to go. Most credit cards charge approximately 18%-30% interest and if you consider the monthly compounding the interest charges are phenomenal. If you were to use a home improvement project of thirty thousand dollars as an example, with a credit card that charged 19% interest the payments would be approximately $459.00 per month for interest only payments. That means if you paid only the minimum payment every month you would never bring down the balance.

Another option is an unsecured loan such as a line of credit or bank loan. An unsecured loan is a loan that the bank gives you based solely on your credit history and since there is no collateral for the bank, this type of loan is a higher risk so the interest charges are higher. The average unsecured loan charges an interest rate of 10% -13%. Using the last example of a thirty thousand dollar renovation and a ten year term with an interest charge of 10% the monthly payment would be $383 per month. This is a much less expensive way to go to finance a large project.

The third alternative is a secured loan such as a secured line of credit or a refinance. The difference between a secured loan and an unsecured loan is that the bank uses the equity in your home as collateral. This type of loan is much less risky, so the homeowner is rewarded with lower interest charges. Interest charges range depending on the type of secured loan you decide to go with, a secured line of credit generally fluctuates with the prime rate. The least expensive choice is a refinance, what this means is that you take your renovation and combine it into your current mortgage.

With a refinance you are increasing your current mortgage amount and monthly payment but by doing so you are saving a loan payment and getting great rates that range anywhere from 4%-6%. A homeowner whose house is worth $250K and they owe $180K has a monthly payment is $1062. If they were to consolidate the $30K renovation into their current mortgage the payment would be $1239/month. That would save the homeowner $206 per month when compared to a traditional bank loan. It is apparent that the most cost effective way to finance a home renovation is a secured loan, now deciding on which type of secured loan that is best for your personal situation.

There are many factors to consider and each homeowner’s situation is different so the best thing to do is to get some help from a professional. A specialist at the bank will recommend programs offered by their bank, not necessarily what’s in your best interest. Using a mortgage broker will offer you unbiased advice because they are familiar with all of the different banks and their programs and they have access to the best rates available. Whichever way you decide to finance your renovations be sure to consider all of your options.



Sell House Quick