Renovating your home is both exciting and nerve-wracking. Whether you are refreshing your space for comfort, fixing things up before selling, or simply tired of staring at that outdated kitchen, home improvements can be a big deal – especially financially.
However, not everyone has some extra cash for their dream renovation, so many secure a loan for it. Since you are here, you’re probably going to a money lender as well. Here’s how you can make the most out of those borrowed dollars.
Be clear with what you want and need
Don’t get caught up in renovation fever. It’s okay to find inspiration from Pinterest home photos or your neighbour’s shiny new kitchen, but you should slow down, be careful, and avoid option paralysis.
Start with the essentials, especially needed repairs to keep your house in good shape. Leaky pipes, bad wiring, and structural issues should take priority. Once you have got those sorted, then you can start thinking about the more fun stuff, like new countertops or a fancy bathroom. Planning ahead will help you stay focused and minimize costs.
Set a realistic budget and stick to it
Obviously, you have to repay a loan, so you need to have a realistic budget on how much you can borrow. one that includes all the essentials, the “nice-to-haves,” and a little bit extra for any surprises along the way. Once that is done, do your best to stick to it. It is all too easy to spend more than planned when something shiny catches your eye, but staying disciplined will make your life a lot easier when the project is over and the bills come due.
Prioritise energy-efficient upgrades
Energy-efficient and eco-friendly appliances like LED lighting, energy-saving aircons and solar water heaters will save you money in the long run. The upfront costs can be hefty, but the smaller utility bills make them worth the price. You get to save more while helping the environment. How cool is that?
Shop smart and hunt for deals
Home renovation in Singapore can be costly. Still, you can find opportunities to save, especially if you are not in a rush. Look around for deals. Check the differences in prices of furniture, fixtures, building materials, and services you want to buy from one shop to another. When it comes to saving, a little extra effort goes a long, long way.
Do not forget a contingency fund
When it comes to costs, renovations don’t always turn out the way you expect them to. More often than not, you’ll spend more than what you anticipate. That is why it is so important to set aside a bit of your loan as a contingency fund. A good rule of thumb is to reserve 10-20% of your budget for unexpected costs. This should help you stay calm in case expenses do not go your way.
Conclusion
For home renovation to be a good thing, it must be done in a financially smart way. After all, a newly minted living room or newly furnished bedroom shouldn’t have to come with money problems. Thankfully, with these tips, you’re on your way to a better home without breaking your wallet.