Buying a resale flat comes with its advantages, one of which is not having to wait long to get your keys. However, if the flat is in bad shape or the interior is not done to your tastes and needs, the renovation costs can add up quite quickly!
Fret not – here are some tips to help cut back on your renovation costs.
1. Set a Budget
… and stick to it! Set your budget and consider all the potential expenses that you may incur, including your furniture and fittings. (Be sure to include a buffer!) Go through the items and check if they are necessary or if there are alternative options.
Making a list helps you visualise what your biggest expenses might be and rationalise your needs. From there, you can determine if you can afford a major renovation or if it would suffice to make a few light changes to the existing flat.
Do keep in mind that renovating a resale flat generally costs more, due to the necessary repairs and restoration works, as well as any dismantling or demolition works.
2. Plan Ahead
If you think you might move after a few years, consider holding off on making drastic, expensive changes to the design such as wall-hacking, or investing in pricey tiles and carpentry.
Design trends can come and go quickly, and it is important to invest in timeless looks with broad appeal, especially if you plan to live in your flat for the long term.
3. Budget Wisely
While wallpaper can make your home look instantly more luxurious, paint is typically more cost-effective and requires less maintenance. To save costs, you can also reupholster or varnish existing furniture in good condition such as arm chairs and tables, rather than purchasing new ones.
Such alternatives are ways to free up your renovation budget, so that you can direct your budget towards more essential improvements, such as in the bathrooms or kitchen. In some cases, you may also need to spend on vital fixes for the air-conditioning pipes or electrical wiring.
4. Factor in Loans
While not exactly a money-saving tip, a renovation loan can help you cover the cost of certain renovation-related works so you can use your savings to buy things like furniture. Do your research on the most competitive rates in the market before applying for one.
Bonus Tips for Resale Flat Buyers
When buying a resale flat, you can leverage on several CPF housing grants! As a first-timer applicant, you can apply for the Family Grant and Enhanced CPF Housing Grant (EHG) if you meet the criteria. Tap on the Proximity Housing Grant as well, if you are buying a resale flat to live near or with your parents. Likewise, other grants are available for first-timer single Singapore Citizens who are 35 years old or above.
Housing loans from HDB are pegged at 0.10% above the prevailing CPF Ordinary Account (OA) interest rate. The rates may be adjusted in January, April, July and October, in line with CPF interest rate revisions. HDB’s Resale Financial Plan services are available here.
Current bank loan interest rates on the other hand, are lower than HDB Loan rates. However, the rates may fluctuate according to market conditions.
This article was contributed by Qanvast, Singapore’s go-to renovation platform. Whether you’re embarking on a major overhaul or a simple refresh, Qanvast can connect you to the right professionals for the job. Read the original article here.
