Generally speaking, an investment in a new kitchen or remodeling an existing one is money well spent, because the return on that investment has historically been significant. Remodeling a kitchen adds great value to a home, and much of the cost of that remodeling can be recouped when the house is sold at a later date, perhaps even as much as 80% of the cost.
But can that same kind of return be realized with an investment in an outdoor kitchen? Many real estate experts believe that an outdoor kitchen investment can bring an even greater return, with a ceiling approaching 200% of investment, although a few considerations must be borne in mind which would heavily influence specific cases. Some of the factors which might act to reduce your return are discussed below.
Scope of the kitchen project
Do you plan to run plumbing for a sink to the outdoor area where your kitchen will be setup? Will you have an electrical hookup for a stove, lighting, appliances and other electronics? How about running a gas line, if your primary kitchen has a gas stove? One very popular inclusion is a brick oven for pizza and other outdoor baking. These basics will add functionality to your outdoor kitchen and will increase return on investment later.
Other features like special landscaping, furnishings, plants, and entertainment ideas can really run up the price of the project, but may also bring considerable payback in the future. If you put your home on the market at some point, it is entirely possible that the outdoor kitchen could be listed as a second kitchen with additional living space that increases its square footage dramatically.
That brings up another point worth considering – apart from the features to be included in your outdoor kitchen, you’ll want to give some thought to just how big it should be. Obviously this will have to take into account the available space in your yard, and if possible you’ll probably want to situate the outdoor kitchen somewhere nearby the primary kitchen for the sake of convenience. Don’t let this planning phase overwhelm you – consulting with an expert is worth the cost in order to be made aware of important design considerations. It can also head off the possibility of major rework due to something unforeseen or poorly planned.
Location, location, location
These are not only the first three rules of real estate valuation, they are critical factors when considering the installation of an outdoor kitchen. For instance, this kind of project would be a little more difficult to do in the Northeast section of the country, and somewhat limited usage could be expected, since there is a fairly long and protracted cold season.
Greater care would also have to be given to protecting the kitchen during winter extremes of temperature and snowfall, such as through coverings, fireplaces, and space heaters. For all those reasons, the appeal to a future buyer of an outdoor kitchen at a home located in Maine for example, might be lower than in a climate which is warm all year.
A second aspect to the location theme is the neighborhood that you live in. If all the houses in your immediate area are valued at $100,000 for instance, and an outdoor kitchen increases your home’s value to $150,000, you’ll probably have a hard time getting full value for your home, just because it’s far above the local average price. Homes in the same geographic area are generally valued and taxed in fairly uniform groupings, regardless of home improvements.
Other value considerations
If a major improvement like this is made to your home, the tax assessment on the home is likely to increase as well, and that should be factored into your calculations for return on investment. Totally apart from the dollar value of the investment, and the increased dollar value of the home itself, there is the intangible value to you and your family.
How appealing is it to the family to have an area outside the house where everyone can come together and spend quality time enjoying the outdoors? And how about the appeal of such an area as a venue for hosting outdoor parties with friends and neighbors? A fenced-in setting under a sunny sky with loved ones may be something that has value to you far beyond its dollar value. Then too, if you’re a person who appreciates aesthetics, an outdoor kitchen can be designed to include touches that offer powerful appeal to your sensibilities, and make the project worth the investment regardless of dollars.
Contact Increte of Houston online or at 281-499-3990 so we can help not only increase value to your home, but also give you a great area outside to spend time with family and friends!