To spend an eye watering sum on kitchen or not?

[TerraMirabilis]

Appreciate that this is a very first world problem but it's keeping me up at night so I'm turning to the wisdom of Mumsnet.

We've lived in our house for nearly a decade and the kitchen and dining room were far from newly decorated when we moved in. For example, I know the dishwasher is from no later than 2005 because that's when they stopped making that model. Everything works - just about - but it's very shabby, not just dated. High time for a renovation.

For most of the time we've lived here, DH has been getting a doctorate which finally finished a couple of years of years ago and he's now working and earning well. While he was studying there was no question of being able to afford renovations but now our financial situation is much better.

DH is making a very good wage and is likely to make much more over time. I'm doing pretty well too and have had several payrises in the last couple of years. I say this not to boast but to explain that we do have the income to afford an expensive kitchen renovation that will give us a stunning kitchen and dining room that's high quality and will last for many years.

My dilemma is whether to pull the trigger on the plans we've been working on with a local design/build firm. We have to decide very soon. I've already refinanced the mortgage and borrowed extra money to cover the cost of the work. If we don't go ahead I can return the excess to the bank without penalty.

I'm just really struggling with committing to spending the money. The renovation will make a big improvement to our home and we plan to stay here long term. It'll really upgrade the house. But it's soooo much money.

It's really messing with my mind to think of spending so much and to be paying it back for the next 15 years. I didn't grow up in a family that could or would spend this kind of money and it makes me feel a bit strange, like I'm not the sort of person who does this. Even though logically we can afford it and it is high time that we spent some real money on the house. DH wants to go ahead but he's not as sensible about money as I am.

Any helpful advice?

It's not just a kitchen is it though? You are presumably remodelling to create better space etc.

If this is your forever home go for it.

I spent a lot on my kitchen (and it was just a kitchen) and it gives me pleasure every day.... I'm now contemplating moving and one of the things stopping me is the knowledge that I'd have to leave my beautiful kitchen behind...

@Alfixnm

We did something similar and it transformed our house and how we live in it. It was worth it totally.

You need to reframe your thinking here. It's not 100k on 'a kitchen'. It's 100k on a major home renovation. Which will presumably not only improve your experience of living in and enjoying your home, but will also add a lot of value to your house long term.

You're both high earners who expect your incomes to keep increasing, you've planned this for years, you have already got loans arranged and the plans drawn up. It sounds like literally the only thing stopping you is giving yourself "permission". And if you don't do it now, what's the plan then? Never do it? It sounds like that's not an option either.

Swallow your childhood guilt, enjoy the fact that you've worked hard and earned this, and absolutely do it!!

@TerraMirabilis all of that ^

@waterlego

I wouldn’t want to be paying off home renovations for 15 years, personally. That seems out of proportion.

Why?

I mean I'd over pay the mortgage afterwards when I could, to get the extra paid odd sooner, but how is it any different than spending more money to move to a bigger/better house?

100% it's worth doing. so long as you've fixed your mortgage rate repayments are reasonably low on 100k and you'll most likely make far more than 100k in the long term on the improvements to the house and therefore you'll be making money rather than spending it.

If you can afford the repayments, are going to live there long term then I would do it

Ok, a kitchen and taking out a wall. I still wouldn't spend that.

If you can afford it then I would say go for it. We spent £70k renovating our kitchen / dining / living room area. Best money we've ever spent as it's where we spend 85% of our time. We don't plan on staying in the house for more than another few years. But we do know that it's added significant value to our home that we will get back when we sell

Any construction work is costing a premium right now due to the increase in raw material prices. The cost of concrete, steel, timber etc has sky rocketed due to Covid, supply chain issues and Ukraine/Russia. It is expected that these prices will reduce back down to “normal” levels but no-one is sure when…they thought this year but that was before Russia invaded Ukraine. It’s always a gamble as to what prices will do but I’m waiting a bit longer before I do my kitchen.

I'd do it, I had the guilt too but that's far out weighed by the joy I get from it
It's made it into a properly sociable room and the heart of the house

That sounds like a lot. We are doing similar. Knocking one wall down and putting in a steel support, putting in bifolds across the back, ripping out old kitchen and installing a new kitchen, new wooden flooring, etc and it is coming to around 50k

£100,000 isn’t much of the house is worth £1m plus. If it’s £350,000 then it’s not worth it.

How does the 100k renovation cost compare to your salaries? How many years salary is that? How much is the house worth? Those are the important factors in making this decision.

100k sterling is probably less than a year's income for our family. It's difficult to be precise because DH is self employed and his business is growing.

House is worth about 500 k sterling. Prices are rising and the projections for our area are continued population growth long term. If we do this project, we'll be staying out for years.

If we moved and put the extra $ into a more expensive house, from the looks of what's out there we'd struggle to find anything significantly better once we account for all the fees. So I'm dubious that moving makes sense.

What’s it worth after you have spent £100,000 on it? If it’s £600,000 go for it. If it’s not going to better that due to ceiling price in your location, then it’s not currently worth it. If something bigger and better is £600,000 then do the work. If the area is to get lots of new homes, be careful.

DH was self employed. Incomes can go down as well as up. My DH was very successful but being self employed means you need to pay more for pensions and there’s no sickness safety net.