I live in a Victorian terraced house. The house has loads of character, but the road/area is not regarded as particularly 'desirable' (slightly tatty, though not awful), and the ceiling price for a house on our street would only be about £130,000. I've been quoted £7,500 for a lovely traditional handmade solid wooden kitchen, painted and with thick oak worktops. The price includes installation, (but not tiling, appliances etc.) The kitchen is a good/medium size.
My Dad thinks I shouldn't spend so much money on the project, as I'll never get it back when I sell it, and it's taken me a long time to save up so much money. We won't be able to move to a nicer area for at least 7 years though, until after the children have left school, so we'll have a long time to enjoy the kitchen. Also, the salesman told me the kitchen is "fully maintainable", so can be made to look as good as new again when the time comes to sell, unlike a cheap vinyl/chipboard kitchen.
So would it be extravagant and stupid to spend so much money on a kitchen in a house on a slightly tatty road with such a low ceiling price?