GO UP

6 hidden costs of renovation & how to avoid them

painting wall

Image credit: Pexels

 

Given the high cost of renovations in Singapore, it's important to ensure that you don't incur unneccessary expenses so that you won't be surprised by additional costs once they finish renovating. In order to help, ValueChampion has identified the potential costly issues that you should take note of before renovating.

 

1. Last minute changes

As much as possible, it's crucial to avoid making last minute changes to your renovation plans. Besides creating a headache for your contractor, making last minute changes could increase the total cost of your project, beyond its original quote. For instance, a seemingly minuscule adjustment such as requesting a different type of flooring material – or even a different variant of the same material – can drive up the cost of the renovation by hundreds of dollars. As such, this problem can easily be avoided through proper planning – and sticking to them!

average cost of flooring materials

Image credit: ValueChampion

At times, these changes may be out of your control. And unfortunately, in these cases, you might not be able to avoid paying the higher cost. For example, your desired materials could be out of stock, or you may find out too late that what you ordered isn't suitable for the original design, or even not up to par with your expectations. To avoid this, ensure that you have an open line of communication with your contractor, and confirm the quality and availability of the materials as early as possible. This way, you won't have to resort to paying significantly more for expensive alternative materials!

 

2. Forgetting to take measurements

measuring tape

Image credit: Pexels

As simple as it sounds, fogetting to take measurements before purchasing furniture, fixtures or appliances can be a costly mistake. In some cases, you will be able to return these items. However, sometimes this may incur additional shipping fees that you'll have to pay for, and you'll have to go through all the trouble to buy brand new items again. For these reasons, it's vital to take the time to double-check all these minor details before making purchases for your renovation!

 

Read: 10 ways to save money on renovation

 

3. Accidental damages

fixing accidental damageImage credit: Pexels

Unfortunately, when renovation accidents happen, they can be expensive to fix. And while those caused by your contractor are not likely to be an added cost for you, it may delay the entire process. However, any damages that you cause can raise the cost of your total bill. Furthermore, damages caused by your renovation project are typically not covered by home insurance. As such, it's important to insure yourself with the best home insurance so as to protect your recently completed renovation project!

 

4. Finding a place to stay

getting keys to rental homeImage credit: Pexels

While smaller renovations may not require you to leave your home, larger projects may require that you find temporary lodging elsewhere. Staying a few nights at a hotel can cost hundreds of dollars, and longer-term situations may require that you find short-term rental, which could cost even more. Similarly, if you end up staying in your home during the renovation, you might end up eating out more if your kitchen appliances are affected. As a result, we suggest adding food and lodging to the renovation budget!

 

Read: Key basics of a renovation contract

 

5. Getting the wrong renovation loan

Many who are seeking home renovation may not have the ability to pay for the entire cost of their ideal renovation without using financing. As such, they turn to applying for home renovation loans. However, getting the wrong loan can significantly drive up the cost , ValueChampion found that the cheapest renovation loans can save borrowers approximately 14-28% compared to the average renovation loan. That means that choosing the wrong loan can cost hundreds or even thousands!

chart of loan cost for 5 years

Image credit: ValueChampion

 

Varying fee structures

planning accounting feesImage credit: Pexels

If you have never renovated before, you're likely to have never directly worked with a contractor. Keep in mind that not all contractors offer the same price structures, which can be tricky when you're trying to estimate your total bill. For example, some don't add the cost of hauling demolition debris or the cost of cleaning upon the conclusion of the project in their quotes. This isn't unheard of, so make sure to check with your contractor about these types of fees to avoid being blindsided.

 

Read: 10 mobile apps to help with home renovation

 

This article was first published on ValueChampion.

 

 

 

 

 

 

 

Loading...