Smart investors know that remodeling during a recession has its advantages. Renovating during a recession is preferable to selling and buying another home. Renovations are typically more affordable during recessions. Renovations during a recession are generally easier to schedule. And better workmanship is easier to obtain during a recession. Here is a 30-day game plan for your next kitchen design project, for those willing to step outside your ‘economic comfort zones’ and remodel during an economic downturn.
If news about the economy has you canceling your kitchen remodel, keep in mind we are not officially in a recession. The National Bureau of Economic Research has not declared that yet.
Historically, recessions have proven to be a good time for home improvements, often inspiring us to do the work and make the improvements while staying in homes we may otherwise have sold.
When remodeling during recessions or economic downturns, focus on high return improvements like lower to mid-range kitchen remodels around $30,000 to $50,000. Unless your home is in a city with higher-than-average property values, high end, luxury kitchen renovations won’t typically see a great return during a recession.
When planning your next kitchen design project, several factors will be considered including:
Kitchen remodels vary depending on where you live; the size or scope of the project; and the product brands you choose but typically you can budget anywhere from $25,000 to over $100,000. Use the Good, Better, Best method as a guideline when pricing products and materials.
As a general guideline, you can expect your budget to go as follows:
If you plan to sell your home within a five-year period, then consider remodeling your kitchen an improvement on your home investment and only spend what you can recoup.
There are several ways to fund your kitchen remodel, each with its own pros and cons. Consider in your decision making, things like interest rates, tax deductions, loan fees and deposit dates due to your contractor.
Start by getting personal referrals from neighbors and friends. Next, check out membership sites like NKBA and NARI. Search reviews online. Once you have three to five candidates, reach out to each one individually.
It’s always best practice to hire a general contractor for large projects that require multiple permits and subs, as with a major kitchen remodel.
I love helping you weave through all the challenges building a nest can bring your way, so dig a little deeper and grab a premier copy of my download “Good, Better, Best Budgeting for Your Kitchen Design and Remodel“.
That’s it for today! Bye for now, Shiree’
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ing during a recession may seem counterintuitive, but there are definite advantages for those who are willing to venture outside their ‘economic comfort zone’, when others are not. To help you find your own comfort zone, use this 30-day game plan for your next kitchen design project.