How much to budget for your renovation?
The question that every person has on their mind before purchasing a new house.
Watch our tiktok video on this if you lazy to read.
For the longest time, and even up to now, nobody knows the budget they should have for their renovation, as the industry is very opaque. And we should have touched on this earlier.
While the correct answer is “it depends on your scope of work”, it is probably the most frustrating answer as well, as homeowners just want a ballpark. So, here it goes!
Source: Deconstruct
We start with something that is easy to remember.
Assuming you have a BTO (i.e. more or less bare unit), and you are doing basic renovation for whole house (i.e. kitchen, 2 bathrooms, a few carpentry), 3 room = $30k, 4 room = $40k, 5 room = $50k.
Thereafter, you adjust upwards for a few items.
Is your house a resale HDB? Add 20%
Is your house a condo? Add 20% (we previously explained why)
Now, there are a few niche houses that will further add to the renovation cost. Examples are walk-up condos or like higher-than-average ceiling. If your house falls in this category, add another 20%.
Lastly, and the most important determinant of your cost. How extensive are you looking to do your house? If the phrase “everything got to go” resonates strongly with you (eg. extremely old house, extensive remodelling of house), do add 100%, or double the cost that you are at now.
Do note that this addition is cumulative.
Source: Deconstruct
Looking at this example, we have a 3-bedder condo in an old condition, where it has to be revamped.
A 3-bedder condo typically is similar in size to a 4-room BTO unit (~1,000 sqft), so we start with the $40k.
Is it a resale? Yes. $40k —> $48k
Is it a condo? Yes. $48k —> $58k
It is a weird house? No. $58k
“Everything got to go”? Yes. $116k
Of course, this is definitely a ballpark. Sometimes you might be doing an extensive renovation, but not that extensive. So the price might not double.
But nevertheless as this is a budgeting exercise, and taking into account variation orders during the renovation that will likely move the cost upwards, it is always better to budget higher than lower.
So there you go, do your math, and save/spend wisely!
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