This is How Homeowners Budget for Their Renovation in 2018
Design is important, and so is having a home that’s built according to your needs. But perhaps the biggest question on any homeowner’s mind is - how much is all that going to cost?
While most of us probably know that renovating a home is a major expense, how much are we expecting – and actually paying? What are Singaporeans most willing to invest on in their overhaul? To find out, we asked over 500 homeowners about their budgeting and spending habits in our Home Renovation Survey, and here’s what they said:
*Data based on HDB and Condo properties surveyed only.
1. Most start planning (and saving) early
No surprise there - with most renovations requiring cash payments made over different stages, homeowners need ample time to save up! Over 50% of homeowners said they started planning their renovation finances whilst waiting for key collection, while another 37% actually started one step earlier - before purchasing their unit.
Want to figure out how much to save up, but not ready to be bombarded with quotes from IDs? Get a rough budget with our Renovation Calculator - try it here now.
2. Homeowners plan to spend anywhere between $11,000 to $50,000.
Across both HDB and Condo property types, a majority of homeowners expected to spend from $11,000 to $50,000 on just renovation works alone. That being said, resale properties (for both types) were slightly skewed towards a higher range. About 17% of HDB resale homeowners were looking to spend $51,000 - $70,000 on works, whilst another 11% of resale condo homeowners were expecting to spend $71,000 - $90,000.
Likewise, there was a slight exception for new condos - almost 50% of those homeowners surveyed were looking to only spend $11,000 - $30,000 for their home overhaul. Why the smaller sum? Take into consideration existing bath and kitchen fittings which might often come with new units - and won't require renovating!
3. However, many end up spending (slightly) more than expected.
Yet, amongst homeowners who have recently completed their renovation, almost 64% reported that they exceeded their initial budget. But, nothing as extreme as shelling out another five-digit figure, if that's what you're afraid of. In fact, when it came to expected versus actual spend between completed projects - homeowners actually spent on average of about 6.1% more than their initial, budgeted amount.
Why? Besides pure oversight, this might also be due to last minute alterations and additions which could similarly jack up prices. So, always remember to set aside a buffer of at least 10% of your initial budgeted sum for these unforeseen circumstances.
4. Homeowners tend to spend the most on their kitchens.
Living rooms may be the one area that homeowners were most willing to splurge on (36%), but when it came to actual spend, homeowners who've completed their renovation reported forking out the most for their kitchens. This is followed by the living area (23%) and bedrooms (12%). Well, considering the huge amount of functional elements (and traffic) going into this part of the house, it pays to splash out a bit more to build a durable, practical space.
5. Carpentry works make the bulk of costs for renovation works.
Flooring may often be said to cost a pretty penny - but when it came to what was essential, over half of homeowners reported spending the most on carpentry works like storage compartments, cabinets and other built-ins.
6. Lastly, most would rather pay more for quality workmanship than design.
Trends and styles may come and go, but a home should be built to weather through the years! This philosophy has never been more apt for local homeowners, who rated workmanship (4.31) as the factor they were most willing to spend on in a renovation. Comparatively, design was ranked last out of the 5 factors (3.74).
Want to learn more about budgeting for your home renovation?
Check out our Renovation Calculator to get a personalised, estimated budget based on your property type, requirements, and interior style.
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