Zero percent kitchen: n. a kitchen remodeled at the height of the real estate and credit bubble, between 2001 and 2006, featuring high-end details such as granite or Corian countertops; designer cabinets; stainless steel appliances and upgraded flooring (e.g. hardwood or travertine tile). Improvements were paid for with zero percent financing programs originated at home improvement stores.
When the dust finally settles from the collapse of the housing and credit markets, one indelible mark will remain: the zero percent kitchen. Prior to the run on home prices in the early 2000’s, and easy access to credit, solid-surface countertops, stainless steel appliances, and hardwood floors were appointments once reserved for high-end homeowners. With the advent of zero percent financing by such superstores as The Home Depot and Lowe’s Home Improvement, these upgrades became easier to attain for middle class America. Of course, this came at a cost to consumers. After six moths to one year, interest rates under these credit programs skyrocketed to nearly 30% on unpaid balances.
With short sales, foreclosures and other distressed sales on the rise, today’s homebuyer has a greater opportunity to purchase an entry level home with a zero percent kitchen. Although the return on investment is not as high as it once was for these improvements, it can give a home a big edge in the market place when competing with properties that still have the builder’s standard kitchen.
If you are a buyer looking at foreclosures, and the homes you like lack a zero percent kitchen, don’t worry. The FHA 203k rehab loan may still afford you the opportunity of having your dream kitchen.
And don’t get us started on the zero-percent bathroom.
DHW: Do you think the ‘zero percent kitchen’ will stand the test of time?
Did you know: The term ‘zero percent kitchen,’ originated on desperatehousewise.com