Average Cost of Home Renovation in Singapore 2024

Related: Average Cost of Home Renovation Loan 2024

How Involved in the Process Will You Be?

When it comes to a home remodeling, there are several levels of involvement to consider.

Some consumers who have the skills and experience may enjoy doing the entire project by themselves–paying only for raw materials and any necessary tools. Given the regulations surrounding HDB renovations, this option is uncommon and can be risky.

Therefore, most property owners will choose to work with an interior designer or contractor who can manage the entire process from start to finish. They are not only familiar with the regulations and guidelines, but will know where to source most materials within your budget. That being said, some people will do a combination of these two approaches, and complete basic jobs by themselves but hire out specialists to do the jobs which require expertise – like electrical and plumbing.

Before getting started, carefully consider your available time and experience level in these fields. Educate yourself on the guidelines and regulations when renovating an HDB flat before proceeding with any renovation. If you intend to move forward with some DIY (non-structural) enhancements to your HDB flat, make sure to check official guidelines and if your project will require a permit or not.

So if you are not looking to start a DIY project, we recommend consulting a licensed professional to help this project to the end. Lastly, you should note that your home insurance should cover your newly renovated home improvements, but you will have to increase your home insurance coverage if the renovations add substantial value to your home (for instance, you are replacing vinyl countertops with granite or marble).

Related: Should You Engage a Contractor or an Interior Designer For Your New Home?

How Will You Finance The Project?

If you don’t have the money on hand, you will need to find financing. Many homeowners will take out a personal or home equity loan in order to make a renovation possible. Our research has shown that it is almost always preferable to use a renovation loan, rather than a personal loan, for this type of project. In general, personal loans will carry interest rates which are about 2% – 3% higher than renovation loans. This is made possible because many times the value of the home being remodeled is used as collateral. From the banks perspective, a renovation loan is simply safer than a personal loan.

Set a Budget

Regardless of how you finance the project, it is important to first determine the maximum amount you can spend on the remodel. Most experts recommend setting a budget first, and then removing 15% from this total. In essence, you now have 85% of your budget to work with and have 15% available if cost overruns occur. If this is your first remodel, be realistic and expect some things to not go as planned. By creating a 15% buffer, you will be confident that the project can be done at your price point and not create a financial strain for you or your family.

Related: Thinking of Buying Your First Home? Don’t Forget About These 5 Expenses When Creating Your Budget

Final Thoughts

A home remodel can be a great way to add value to your home and make it more enjoyable to live in. At ValueChampion, we will be with you as you look for a home, find financing, and begin your remodel. If you are interesting in getting coverage for your freshly renovated home, learn more about home insurance plans, or insurance in general.

Read More: