Should I spend the time and money on remodeling the kitchen?

I just bought my first little 2/1 starter condo. The place is pretty nice and spacious for 868 SqFt. Its in a great neighborhood. The living room is nice and the bathroom is descen but the kitchen is like a cave from hell. The kitchen is a boxed in 10x10 slum, pretty much the same as it was the day they completed it in 1987. Orange/yellow linoleum, old dark cabinets, beat up appliances and one dim light in the center. I have the money to put into remodeling the kitchen to be quite nice. New lighting, maple cabinets, granite countertops, stone floors and stainless steel appliances. Here in NorCal kitchens get the money on a resell. The dilemma is, do I want to sink that kind of money and effort into a place that will scare away "starter home buyers" or do I want to go for it and appeal to the higher end bachelor/bachelorette? Any suggestions? I do plan on living in it for about 5 years to build some nice equity. I would like to live with the nicer kitchen, but I would be content with a less extravagent ktichen that would cost thousands less.

Public Comments

1. You answered you own question when you said you were looking of resale value and want to have a nicer kitchen. Kitchens and bathrooms are the most expensive rooms to remodel but also have the most impact on buyer since they will not have to go to the expense after the purchase...like you are doing. Keep it tasteful and conservative in color of counter tops and cabinets and you'll be happy now and 5 years from now.
2. I would definitely invest in the kitchen. Check out different options, maybe not spend quite so much money in it. It sounds like this is what you want in the house you plan to build. It's not necessary to go thru all of that now, in a place you most likely will not be in for more than 5 years. But as a woman, I would not go for a kitchen that was dark. Most women/men spend time in the kitchen and hate the 70's/80's dark cabinets and orange/brown combinations. Maybe a compromise can do it for increased resale value. Dark kitchens and bathrooms decrease value, I think.
3. Kitchen remodels typically have the best return on investment of any remodelling job. If you will be using it for a few years then even better. Don't go overboard though. A $30,000 kitchen upgrade on a $100,000 condo isn't going to get a full return. If it is a $300,000 condo then you might get your money back. You don't want to be the most expensive home on the block, or in this case the most expensive condo. What are the other condos like, and are there others which have upgraded? It certainly does sound like your kitchen would benefit from some improvements. Brightening up the kitchen, new appliances and even just new laminate counters and vinyl flooring would increase the value and make it easier to sell.
4. For resale value, kitchens and baths are the best rooms in a property that you could invest money in if you take a look at Return On Investment. (ROI) The 2006 Cost vs. Value Report, published by the National Association of Realtors, lists that you could expect a 54.9% ROI on that kitchen remodel that you're considering. This percentage is actually the nationwide average ROI for a kitchen remodel. I detailed some of the highlights of the report on my blog back in November of last year when the report was published. Take a look at my post at http://neohiorealestate.blogspot.com/2006/11/remodeling-review-2006-cost-vs-value.html for more information and a link to the report which breaks down ROI based upon Metro areas. A kitchen remodel in your area might actually provide a better return on investment! If you decide to invest in the remodel be careful to select materials that will last in terms of durability and tastes. There's nothing worse than spending money on something that's very popular in Kitchen's today (i.e. granite countertops, color schemes, etc.) only to find out that tastes have changed when you go to sell at some later date!