Kitchen remodel financing: Your dream kitchen right now

Article summary

• The kitchen is the heart of the modern home, so it should be a priority for investment.
• Form a clear idea of what you want to achieve with kitchen renovations by taking into account lifestyle choices and optimal kitchen design.
• Once you’ve determined what you need to spend, you can finance the alterations using your existing home loan, or by taking out a second loan.

From its humble origins as a room where the stove was kept, the kitchen has evolved to become the heart of the modern home. No longer just a place for cooking, it is also a place for eating, hosting guests, and even working.

As such, the kitchen should receive the most attention from homeowners looking to increase the value of their home.

But what is it going to cost you? Kitchens are the most valuable part of the home, but also the most expensive to renovate. Here are some ways you can finance a kitchen remodel.

3 Steps to kitchen remodel refinancing:

1. Determine what you want.
2. Determine how much it will cost you.
3. Determine how to finance the kitchen remodel.

1. Determine what you want

Take into account the following factors:

• Lifestyle choices; in other words, do you intend to do a lot of entertaining?
• Whether you plan to eat as well as cook in the kitchen.
• Whether the kitchen needs to be kid-friendly (particularly important as you’ll want to make sure sharp instruments are out of reach, and that children can’t accidentally knock heavy or hot objects off the countertops).

2. Determine how much it will cost you

The cost of renovating a kitchen ranges from R10 000 to R250 000+, depending on the size of the kitchen and the extent of the remodelling project.

Plumbers Cape Town puts the national average cost at around R210 000, though they break it down into more detailed price ranges:

• Small kitchen remodel: R10,000 – R150,000
• Mid-range kitchen remodel: R150 000 – R250 000
• High-end kitchen remodel: R250 000+

Essential Kitchens, a Cape Town-based kitchen renovations company, further breaks it down into an individual cost for each feature of the kitchen:

• Kitchen cupboards: R75 000
• Building work: R55 000
• Worktops: R24 000 – R28 000
• Electrical: R19 000
• Plumbing: R18 000
• Gas point: R5 700

3. How to finance the kitchen remodel

1. Readvance on your existing home loan.
2. Apply for further lending.

1.Readvance on your existing home loan

If you’ve already paid a portion of your home loan, you can borrow against the difference between your registered home loan amount and the outstanding balance.

2.Apply for further lending

You can take out a second loan on your property, over and above your existing bond. You can only do this if:

• The additional amount exceeds your registered home loan amount.
• The value of your existing property has increased since you purchased it. Your bank may need to complete a new home valuation.

Whatever choice you make and however much you spend, real estate experts agree that kitchen renovations are the way to go if you want to boost the value of your home, as well as improve your own living standards while you’re there.