Budgeting your War Chest

Introduction
After I wrote about how My ID selection came about, I realised I didn't explain the finer points you need to do prior to the ID selection.  So in this post, I will talk about budgeting and in the next post, I will highlight the necessary mentality and preparations you need to have prior to meeting a ID or a Contractor.

Picture note related: Just a stupid illustration hoping to enlighten you that in war, you need war funds.

Yesh! IT'S WAR!!!!!!!!!!

I just like the movie 300. 

Budgetting 101
Always always always ask yourselves.  How much is in your war chest?  Without proper planning, you may find yourself in debt.  Be realistic and only get what you want.  It's easier for me to say this, but even without planning, I find myself giving in to unnecessary wants which may balloon my current budget.  Thanks to Gf, I was brought down to earth.  Several times.

So what should your budget look like?  I have come up a list of items for your consideration based on a 4-room HDB unit.

1. The Construction
Definitely the no.1 cost which should not be neglected.  You need to hack walls.  Hack tiles.  Change waterproofing.  Add window grilles.  Change all the wood doors.  Painting.  Build wardrobes.  The list goes on and on.   Unless you are moving into a all-ready home with all built-in furniture in condition, this should be where your bulk of costs goes into.  Generally the works in this category includes the following:-

• Demolition works which refers to hacking of tiles, knocking down of walls
• Wet works which includes built up walls, flooring, tiles and waterproofing 
• False ceiling / 'false' wall works
• Painting works
• Built-in furniture or carpentry works consisting of kitchen cabinets, wardrobes, TV consoles
• Glazing works
• Plumbing works which includes running of gas pipes and installation of sanitary wares
• Painting
• Misc works like haulage works, cleaning up, Professional Engineers' Fees, ID fees

So how much is enough?  It depends on what you really seek.  I have seen people spending $15,000.00 to do up a new flat (I have a friend whom is going to do that to her new flat).  I have also read of people spending $100,000.00 or more.  So ultimately it depends on how deep your pockets are.  And also consider the following self-questioning:-

• What is the purpose of renovating? Is it for you and your family to live in comfortably? Or do you plan to rent it out?    If it's the latter, do it cheap IMHO.  However, if it is the former, spend but within your means.  I always felt it's better to do it now if you can then wait a few years later (to accumulate funds) and do renovation again.   If your budget is tight, do up the basic finishes and needs first.  The word here is prioritize.
• Do you plan to sell your house after a few years?  This is a difficult question.  You see, if you do plan to sell, try to keep your renovation cost low.  Contrary to what most real estate agents will tell you, a nicely renovated unit may not be so sellable in the resale market as many buyers out there are more likely to carry out renovation works to their new purchases (especially with the younger generation).  Unless the prospective buyers have the same design tastes as yours, most of them will probably baulk at the idea of paying a premium for a nicely decorated dwelling as compared to paying for a run down and subsequently using the premium saved to do up the place to their own liking.
• What is the future like for you?  Do you plan to have a baby? Do you have aging parents living with you?  You may want to set aside/review budget for incorporating a baby room or elderly-friendly features.

2. Electrical Works
This relates to all the wiring, socket points and lighting points your need.  Same advice as above.  Do as much as you can afford now as it may be costly if you later regret  missing out a point here and there.  Generally, costs are within the range of $1,500 to as much as $8,000 (for complete re-wiring) for a 100sqm unit.  I have seen quotations of even $15,000 in some local forums but the unit rates used are crazy (smell of carrothead, if you know the mandarin meaning).  Note that this budget is for the installation works only.  Supply of lights need to be considered separately (see below).

3. Air-conditioning Works
Singapore is HOT, HOT, HOT!!! Though this is not a must have item, try to incorporate into your renovation works.  It will be messy when you decide to do it after renovations and most likely you need to be around to supervise the works.  Why not yet your ID or Contractor do the dirty work for you?  Costs are generally within the range of $2,000 to $4,000 depending on the system type.

4. Sanitary wares
This refers to basins, kitchen sinks, taps, toilet bowls, shower heads and etc.  Basically I would advise to change them all if you are moving into a re-sale unit.  It's all about hygience.  Costs are in the range of $1,500 to $3,000 or more (if you are going for designer wares)

5. Lights
Yes.  Definitely a need.  Unless you intend to use candles.  Again spend within your means.  You do not need designer lights.  You need ILLUMINATION only.  Designer lights are only your WANTS.  Cost can be as low as $500 to as high as ..... erm....... forget it.  Ultimately it depends on what and how many lights you want.

6. Furniture and electrical appliances.
Okay this usually ranks lowest in importance.  Well, you can get them later after the renovation is done.  Just go for the basic furniture like Bed, Sofa, Dining Set, Console.  If your budget is tight, go to Ikea.  Furniture may not last (as what others said), but they are affordable and guaranteed of good service.    However, if you plan to get a home-entertainment unit, try to get it early and plan with your ID or Contractor.  Sometimes you need their help to conceal the wiring (especially for a 5.1 system) or mount the speakers on your ceiling.

Conclusion
This generally sums up the items you need to consider for planing out your budget.  I think I may missed out alot of information, so if you have queries on renovation or on your items in your quotations, do feel free to drop me an email at keithtan79@gmail.com.  I will be most glad to advise you on any renovation matters to my best ability.