Huge raises (for us)- no idea what we can afford for remodel

[Anonymous]

Anonymous wrote:

Anonymous wrote:Remodel has nothing to do with income, it’s about savings. Start putting money away and hopefully by the time you have saved enough prices will have fallen/this inflationary bubble will have popped.

This. Also, be aware that remodel costs are always more than you expect. Better to have a higher comfort level before jumping in to this.

Our $70k kitchen remodel cost $110k because we found structural issues that had to be addressed. Plus we were out of pocket to stay in a hotel during some of the renovation.

That is extremely high. You can do one for 1/2 the original cost.

[Anonymous]

If you were looking to buy a house, most people would say that you could spend more than $335k with an income of $250k + bonus. Since your house is so inexpensive relative to your income and it is a 1964! kitchen, I'd renovate if you think you are going to stay. It will take some time to get the plans in place, hire a good contractor, get permits, and line up all of the finishing items/appliances so pay down those student loans while you're waiting but life is too short to have a 60 year old kitchen.

[Anonymous]

How much do you have in your emergency fund and general savings? The economy is headed south, and layoffs are coming over the next 12-24 months. Give yourself a big buffer before you commit to a huge project.

[Anonymous]

Unfortunately, a 100k reno won't get you far in this market. As others have said, I would consider getting caught up on your retirement and other savings then consider the renovation. Inflation is real and even with large raises, some of this is eaten up by inflation. Plus, with a HHI of 250k, you now lose many of the benefits of being middle class such as the 10k student loan forgiveness. I would live with my new income for at least a year before I make a big purchase.