I was working with a wonderful client recently who had to purchase a new car right before purchasing their new house.  Eek!!  Talk about stress.  The new home, a charming 1940’s Georgian, hasn’t been updated since the ’70’s!!  Double eek!!  GREAT potential but will certainly require additional investments to align with her vision. 

Like most, when it was time to buy a car, she was fairly well-versed in what it would cost and simply went about the purchase.  The kitchen renovation, however, was a different story.  As this is her first home – and first home renovation – she had no idea the investment of time and money required to design and execute her dream kitchen. 

Kitchens are one of the biggest and best investments you can make into your home.  Like the old adage goes, it’s the heart of the home.  A well-designed kitchen will serve you well for years to come.  Similar to my client, most consumers are not as well-versed in the costs of large-scale home renovations and I thought it would be fun and useful to compare other common consumer items. 

cost-benefit analysis: cars, kitchens & coffee

Each category is assumed to be used daily and we’ll look at it’s impact on your overall health, overall costs as well as potential return on investment. 

Item	Kitchens	Cars	Coffee
Usage	Daily	Daily	Daily
Health & Safety Impact	High +	High	Low
Average Up-Front Cost	$62,000	$49,388	$5
Average Annual Maintenance	$300	$900	N/A
Average Lifetime Purchase Volume	4	6	52,200
Return on Investment	Up to 10% increase in home’s value	Immediate depreciation	N/A
Cost Over Lifetime	$260,000	$324,000	$261,000

As you can imagine, costs will swing wildly from entry-level to high-end luxury items so I went with averages.  For the purposes of this exercise I assumed  40 years to calculate lifetime purchases, with coffee being the only outlier of 5 days/ week rather than 7.

Were you surprised to learn that your kitchen is actually one of the best lifetime investments you could make?

Let’s take a look at one of the most interesting findings in this research, which is the impact new and well-designed kitchens can have on your health.  Take a look at this graphic from ramseysolutions.com:

• 33% had a healthier lifestyle after renovating their kitchen which means less trips to the doctor
• 50% cited more family time which I absolutely LOVE since this can have a major positive impact on the mental health of every family member
• 41% said they cook more at home which means savings on food costs

In addition to health benefits, a new and improved kitchen will go a long way if you are looking to sell your home. Since it is one of the most used and most expensive rooms in the home, home buyers that don’t have time for a gut renovation will pay a premium for a newly remodeled kitchen.

When considering a renovation, ask yourself these questions:

• Is your kitchen more than 10 years old?
• Do you want to add immediate value to your home?
• Have you outgrown some of your kitchen’s features or technology?
• Do you simply wish the space looked or felt different?

If you answered yes to one or more of these questions, it might be time for an upgrade. 

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