A New Kitchen

Has anyone else heard all those home equity line and home loan radio commercials? They say that renovating your home's bathrooms or kitchen is the best investment that you can make. I say bollocks to that. As a former mortgage person and the recipient of a new kitchen I can tell you that this is not true.

If you research on the web, you will see the return on kitchens and bathrooms varies by geography, price range, etc., but it is almost never even 100%. This means that you generally don't even get all of your money back. Despite those statistics, I know of instances where a strategically done cosmetic fix can give you a positive return. Also, there are instances where a kitchen is so bad and such a price drag that a renovation can have a positive return.

With this in mind let's forget the statistics and say that you could get a 5% positive return. This does not factor in the enormous amount of time and aggravation that are involved. If you value your time, the return goes negative again.

You are much better taking your 6 to 12% return in the stock market or higher return on a rental property. If you want a renovated kitchen because you will enjoy it, then do it. Don't do it because it is a great investment. It is not. If you do decide to renovate, don't forget all the great new energy efficient appliances.