Planning Your BTO Renovation Budget Without Breaking the Bank
- 10 Studio
- Jan 15
- 3 min read
Renovating your first BTO flat is an exciting journey, but without careful planning, costs can quickly spiral out of control. The good news? Creating a stylish and functional home doesn't have to break the bank. Want more renovation tips? Check out our other article "Are They Worth The Savings? : The Truth About ID Package Deals"!
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With smart budgeting and thoughtful design decisions, you can transform your BTO into your dream home while keeping expenses in check. Here's how!
Understand Your Overall Budget
Before you dive into renovation plans, it's crucial to define your overall budget. This will serve as the foundation for all your decisions.
Set a Maximum Limit:
Decide how much you can afford to spend, including furniture and appliances. For most BTO homeowners, this might range between $30,000 to $60,000.
Allocate Your Budget by Room:
Here's an estimated breakdown on how you should portion your budget by room
Living room: ~20%
Kitchen: ~30%
Bedrooms: ~25%
Bathrooms: ~15%
Miscellaneous / Contingency: ~10%
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We feel that by setting a clear budget limit and allocating amounts to each area, you'll have a roadmap to guide your spending and avoid unnecessary financial stress.
Prioritize Key Features
Renovating your BTO means making decisions about where to splurge and where to save. Start by prioritizing what truly matters.
Focus on long-lasting essentials such as:
Flooring
Kitchen cabinetry and countertops
Electrical works
Save on non-essentials (like decorative lighting or feature walls) to add later when finances allow
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Focusing on long-term, essential items ensures your home is functional and durable, while non-essentials can be tackled later when you're more financially flexible.
Get Multiple Quotes
Dont settle for the first contractor you find. Gathering multiple quotes gives you insight into fair pricing and helps you choose the right professional for your needs. Considering package deals? Read more about what we think in our other article "Are They Worth the Savings?: The Truth About ID Package Deals"
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Choose Budget-Friendly Materials
Renovations don't have to mean luxury materials. With thoughtful choices, you can create a stylish home without the hefty price tag.
Flooring: Opt for affordable options like vinyl flooring over pricier choices such as marble or parquet if on a tight budget
Furniture: Go for ready-made furniture for less visible areas and reserve custom pieces or carpentry for high-impact areas such as the kitchen and living room.
By opting for budget friendly materials in lesser visible areas, you can save money for the statement pieces that really matter.
Factor in Hidden Costs
It's easy to overlook hidden costs when planning a renovation. Make sure to account for these expenses to avoid unpleasant surprises.
Hidden expenses to look out for:
Hacking works:
New electrical points or shifting of points in areas with tiles may incur extra costs for the finishing.
Estimated: $2,000 - $6,000
Electrical re-wiring:
Additional points or shifting of points
Estimated: $3,000 - $5,000
Plumbing works:
Installation of water heaters, sanitary fittings or new points
Estimated: $1,000 - $3,000
Air-condition Installation:
Estimated: $3,000 or more
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By budgeting for hidden costs like plumbing, electrical work, and air-conditioning, you'll be prepared for any unexpected expenses that arise.
Payment Schedule
Understanding your contractor's payment schedule is essential for managing cash flow during the renovation process.
Most contractors & IDs require staged payments:
Deposit: 10%-20% upfront
Mid-project: 40-70% upfront
Completion: 10-20% once completed
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Having a clear payment plan ensures you're financially prepared and that work progresses on schedule without any cash flow issues.
Set Aside a Contingency Fund (10%)
No matter how well you plan, unforeseen costs are bound to pop up. A contingency fund provides a buffer to handle these surprises. Allocate about 10% of your total budget to cover unforeseen expenses like unexpected structural issues or material changes.
Having a 10% contingency fund ensures you're financially prepared for any changes that arise during your renovation journey.
Planning your BTO renovation budget doesn’t have to be stressful. By setting clear priorities, sticking to your budget, and being mindful of hidden costs, you can create a beautiful and functional home without overspending. Remember to stay organized, track your expenses, and adapt when necessary. With careful planning and a little flexibility, your dream home is within reach!
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