Updating or replacing the kitchen is one of the top renovations for profit recommended by Dan Mulcahy, founder and managing director of Mulcahy’s Construction Group (MCG) in Melbourne, which specialises in pre and post auction renovations.
“Modular kitchens can be a cost effective and fast way to update the livability of a house or apartment,” says Mulcahy. “Although we suggest using a custom kitchen builder wherever possible as he will supply and install the cabinets as well as offer a warranty. Costs for a basic custom kitchen installed will all plumbing, electrical and tiling can be as little at $10,000. This can add enormous appeal and value to a property, with the increase in value sometimes being as much as $50,000 to $60,000.”
Builder Dean Harris who has been renovating homes for nearly 30 years in Sorrento, Victoria, agrees that well designed kitchens and bathrooms will bring a good return as “buyers don’t have to do any work, they can just move in”.
“The emotional connection between buyers and imagining living in the house they are buying is a big driver so when renovating it is vital to spend the money on the design of how the occupant will live in the area. For example kitchens are now a lot larger areas with bigger fridges and ovens for entertaining and more casual dining.”
However when setting aside a budget for renovating it has to be consistent for a good return. For example when renovating a kitchen it doesn’t work fitting a $9000 Smeg stove and having DIY cupboards. There needs to be consistency across the renovation. Be realistic and look at the big picture.