Here’s How You Need to Plan Home Renovation Budget to Avoid Unwanted Surprises

Posted on: Feb 2, 2022 | | Written by:

Here’s How You Need to Plan Home Renovation Budget to Avoid Unwanted Surprises

Published on February 16, 2022. EST READ TIME: 3 minutes

Every homeowner renovates their home after a certain time where they feel there is a need to create more space in the house or change the home's current design. Also, when you purchase a resale flat, it might not be in that good condition, and few renovations are needed. Renovation is not a bad idea; however, one has to be smart with the budget planning to avoid unwanted surprises that can put you in trouble. It is also preferable to have a home insurance policy as it safeguards your property by providing coverages for loss arising from fire, theft, natural calamities, etc.

Five Things to Remember While Planning Your Home Renovation Budget

1. SET ASIDE CASH

Irrespective of the budget the interior designer gives you, set aside about 20 per cent more. You cannot expect everything to be executed as planned. For example, you may have a last-minute hassle, such as having to change your tiles because a supplier can’t deliver. Work that goes on too long will also incur more labour costs. Besides preparing for the unexpected, try and save as much as possible in cash, besides relying on the loan. The less you need to borrow, the less interest you’ll have to repay.

2. PRIORITISE YOUR NEEDS AND WANTS

It is necessary to prioritize your needs for home renovation. Come up with a list and sort them into needs and wants. It may be tough but rank them accordingly. For example, energy-saving lightbulbs are more useful and cost-saving than a disco ball. If you are really on a tight budget, then forgo fancy LED lights, bathtubs and lavish sofas. After sorting, rank your needs again. Those you think are not as urgent can be put on hold first. For example, renovating your worn-out bathrooms is actually more important than replacing your floor tiles, assuming the latter are still fine. Also, your vision and priority may change in the future, hence putting less urgent renovations on hold first may be a good and plausible idea.

3. RESEARCH AND COMPARE PRICES

Research online to get the best quotation for home renovation from your interior designer. In addition, look through the comments and reviews section if there’s one to have a rough gauge of the services and quality of each renovation firm. Moreover, you have to know the pros and cons of the items you are considering to make an informed decision. Finally, choose renovation firms and professionals on the same page as you and within your budget. Do not choose overly cheap labour to scrimp and save some money. It may backfire, causing you to spend additional money because of possible poor work and quality. Hence, consulting your family and friends may help you make better decisions.

4. ESTIMATE YOUR COSTS

After finding potential renovation firms, professionals and items, collate them into an Excel spreadsheet. It is easier to store and track your expenditure if you do it on Excel. Furthermore, there are many additional functions such as tables and tools for more straightforward calculations. If you cannot find the prices online, give these companies and professionals a call instead. Try to squeeze your estimated cost way below your budget, preferably 10 to 20 per cent lower, which will help prevent overspills or miscalculations.

5. DIY WITH RECYCLED AND REFURBISHED ITEMS

Recycle items and materials that are in good condition. They will provide a brand-new look to your home without causing a big hole in your pocket. For example, you can sand and paint wooden fruit or wine boxes and install them on your walls to use as bookshelves.

Conclusion

Going for a home renovation is indeed not an easy task. Besides planning the budget for renovation, you need to be smart in choosing the best designer material and managing time. But if you follow the steps mentioned above while planning your renovation budget, it is less likely that you will get into any sort of financial trouble. Furthermore, if you are renovating your home, you will want its structure to be secure; hence, it is advisable to have a home insurance policy that will provide coverage for damage caused to your property due to any unforeseen events.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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