You're ready to renovate your new home in Singapore and transform it into your dream abode. But how do you budget and save for what can be a costly undertaking? Don't stress! With some planning and discipline, you can reach your renovation goals without breaking the bank. In this article, we'll explore some practical budgeting tips and creative ways to sock away cash for everything from knocking down walls to choosing posh bathroom fittings. Whether you're giving your HDB flat a mini makeover or going for a full-on luxe condo transformation, you'll find helpful advice to make your renovation dreams a reality while keeping your finances intact. So grab your calculator and let's get saving for the home reno you've always wanted!
To kickstart your home renovation, the first thing you need to do is determine your budget.
If you're paying in cash, make sure you have enough in your renovation fund. If not, consider taking a renovation loan or a personal loan.
Once you start renovating, keep a close eye on your spending. Make adjustments if needed, like choosing more affordable materials or reducing the scope of work. To facilitate this, It’s good to have a comparison sheet to help you pick the best options. Apart from the renovation cost, be sure to also set aside a budget for appliances, electronics and furniture. Remember, your budget is your roadmap, so review it regularly and stay on track. With good planning and discipline, you'll complete your renovation within budget.
Prioritising your renovation means following the ’rule of three’. This means looking through your renovation goals and determining the must-haves, the good-to-haves and the luxury items. Let us show you how you can prioritise your reno:
When budgeting for your renovation, prioritise the must-haves— the things you absolutely need to change, or require for your new home. These are items such as kitchen appliances, sanitary wares, tearing paint, lack of storage space, walk-in-wardrobe or an extra study room . Target these necessities first and account for their costs from the onset of the renovation.
Once you have established your must-haves, you can shift your focus to the good-to-haves– these are elements that enhance comfort, aesthetics, and overall satisfaction. This category encompasses features that, while not essential for functionality, contribute significantly to the overall quality of the space. For example, a smart home system can help you save on electricity costs, space-saving furniture has the ability to enhance space with multi-purpose functionality and a high-quality ergonomic chair can provide hours of comfort during those work-from-home days.
The final tier consists of luxury items that go beyond basic functionality, and add little to no comfort for your home. These are indulgent additions that elevate the overall luxury and style of your renovation. Whether it's fluted wall panels, elaborate chandeliers or extravagant design elements, these items are the cherry on top, and we recommend exercising restraint when looking to add these items to your home,
Once you've budgeted for the big-ticket renovation items like your flooring, cabinets, and countertops, don't forget about the hidden costs that can sneak up and blow your budget.
Very often, during the demolition process, unforeseen circumstances may surface where you will need to engage a Professional Engineer (PE) for endorsement, which requires additional fees. Your contractor may suggest additional tasks to improve your home's functionality or flow. Be prepared for some contingency funding in case additional unforeseen works are required.
Of course, in Singapore, we cannot forget about our favourite GST. GST is charged on all goods and services, and sadly, that includes home renovations. The current GST rate is 9%, so you'll need to budget for an additional 9% of your total renovation cost, or account for it in your total budget. GST is payable to your contractors and suppliers, so make sure you understand upfront what is and isn't subject to GST to avoid surprises.
To stay on budget, get multiple quotes from contractors, check reviews, and make a realistic budget that includes a buffer for unexpected costs. Ask if contractors offer fixed-price contracts to lock in costs upfront. And don't be afraid to negotiate to get the best value—every dollar saved can go toward making your dream renovation a reality.
When choosing materials for your renovation, consider more affordable alternatives to expensive options. For flooring, laminate or vinyl can work as well as granite, quartz or sintered stone for a fraction of the cost. Reclaimed wood is also popular and budget-friendly. For countertops, laminate or solid surfaces can be an inexpensive solution compared to granite or marble, and you can consider them for areas which do not see much action.
Keep an eye out for sales and promotions at hardware stores, appliance stores and even interior designer firms. Major holidays like Chinese New Year often see big markdowns on materials and appliances. You can also sign up for the newsletters of your favourite stores to get notified about upcoming sales.
If you are moving into a freshly built home, your neighbours may rally and approach certain stores for group-buy discounts—so don’t be too quick to leave any neighbour group chat!
If you’re reasonably handy, take on some tasks yourself to avoid paying professional labour fees. Things like painting walls, installing flooring, or minor carpentry work may be suitable DIY jobs for some homeowners, if you have the flair for it. You could even do your own set-up for smart-home gadgets such as switches, lights, fans, curtain tracks! Watch online tutorial videos to pick up new skills and get guidance for your renovation projects. DIY-ing parts of your renovation, when done properly and safely, can result in major cost savings, and be fun in the process!
While the tips we’ve shared today may be useful, it’s important to understand that a home renovation is a big-ticket item—almost akin to a wedding celebration, so it’s important to plan way in advance. You can start by setting saving goals and timelines, and look for ways to cut costs in your current lifestyle (maybe not have that coffee or bubble tea) or take on a side gig to earn extra cash.
Lastly, once you have the money for your renovation ready, remember to safeguard it with HomePay! HomePay holds your renovation funds securely in a MAS-approved wallet, released only to your interior designer once certain milestones in your renovation have been met. When you pay with HomePay, you can rest assured that your hard-earned money is always in safe hands, so you can focus on what’s important—upgrading your home!
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