What percentage of a property would you say makes sense to spend ?

[Nothappyatwork]

Just as an example in a previous house that I honestly thought I would be leaving feet first in a wooden overcoat we spent over 100 grand remodelling. This was nearly 30% of the eventual sales price so we literally didn’t make a penny, in fact if you looked at it in cold hard profit and loss it was definitely a loss.

so keen to not do the same again I’m sure I read somewhere that they were like maximum percentage is that you should spend for example no more than 10% of the purchase price on the kitchen and bathroom.
what do you think ?

I would look at comparable properties that have been done up and sold recently to get an idea of the end value. I've never heard of the 10% spend but it must depend on how bad a state the house is in when you buy it. If the house is very dated then 10% doesn't seem like a lot.

I've not heard the rule about percentages, but I think common sense applies. You're never going to out laminate flooring in a million pound house, any more tha you'd put Italian tiles and marble worktops in a 50k bedsit.

It also depends if you're going to stay there long term, what the ceiling prices are etc. If the rule is 10% for a kitchen the surely the bathroom would be more like 3%?

Sorry no help at all really, but an interesting thread.

Percentages are a nonsense. By that measure if you have a terraced house in London worth a million quid, you’re spending £100k on a kitchen. Clearly you wouldn’t spend anything like that

I don't think it's about percentages, more about what's appropriate for the house and what state it's already in. And whether you can afford to do the work.

We bought a fixer upper for a bit under £450k and spent £40k initially on the basics (central heating, plumbing, roof, bathroom), then another £60k over 11 years gradually improving things - kitchen, garden, windows, driveway. We didn't buy ridiculously expensive products, the kitchen was from Wickes and the bathroom from local plumbers' merchant. We didn't extend it at all. We sold 12 years later for £700k, so more than made back what we spent on it.

We've just bought another fixer upper at around £550k and are planning to spend about £120k doing it up. Again, not extending but making the space flow better, repairing some damage highlighted in survey, replacement bathrooms and kitchen as these are in daft locations and very elderly. We also want to put in solar panels and a heat pump. We have a kid now so want to get as much of this done before we move in as possible!

We're aiming to stay 15-20 years at least, which means the savings on energy will cover the cost of those things.

I’m pretty sure I heard it on one of the Sarah beanie type shows, there definitely are hundred grand kitchens in London three bed terraces I have seen them.

I have heard about the 10% rule for kitchens too but it was a few years ago and house prices have increased a lot since then. I think I spent about 5% on my kitchen but intend to live with it for a long time so wasn't worried about resale value.

You spend most of your time at home: rather than think of improvements you make about adding value in cold financial resale terms, try to look at it as the value they bring you in terms of the enjoyment you get from seeing them every day and loving the way your home looks.

That’s not to say go mad and put a £100k kitchen into a house which will never top more than £300k; but that if there’s something which would bring you joy, have it. I will never regret having had proper solid oak parquet fitted throughout our house, even though it’s probably way above the “price point” for a house like ours: I love the way it looks, the way it feels beneath my bare feet, and there’s also a somewhat sentimental reason for it which is priceless.

Also, things change. We spent about 15% of total purchase price renovating our whole house - new kitchen, bathroom, internal and external doors, flooring throughout. At the time, we thought this was going to be our 3 or maybe 4 year stopgap home; we’ve now been here two years (today is the two-year anniversary of exchange!) and it’s likely to be our home for much longer than that: our neighbours are wonderful, and since Covid our lives are no longer so oriented around being in central London most of the time, and moving closer in was always the goal which now may never happen. I’m definitely glad we didn’t scrimp on the things we now love.

London 3 bed terraces can fetch in excess of a million pounds depending on location. I think it’s a bit crazy to spend that much on a kitchen personally unless there is extensive building work going on to enlarge the kitchen say.

You could definitely spend £100k on a kitchen in a London terrace if it involved extending it!

Well yes if extending it but that’s a different thing. The percentage thing might work to a certain point in lower value houses but there comes a point where it doesn’t make sense

we bought our doer upper three years ago for £108500 (done up price at the time on this street was £130000) we have spent over that time £12000) kitchen bathroom decorating new garage roof patio etc so total spend £20000 (no mortgage) and now the houses on our street are selling for £150000 so has been well worth it but we are in our sixties and dont intend to move this house will be my partners daughters inheritance