5 tips to manage home renovation costs

Renovating your home can involve structural changes, plumbing, electrical work, plastering, painting, and other work. Home renovation costs can therefore be steep, often running into six figures. Also, a home improvement project can take a few months or even half a year. Before hiring contractors, it's wise to compare prices and make an informed decision. Look at different comparison platforms for interior design and renovation services, providing information on costs, home decoration styles, ratings of contractors and other services.

Before heading to physical stores to select materials and supplies, consider comparing prices online. Prices offered by online stores are usually lower, and materials sourced from the mainland tend to be much more affordable than those from abroad.

More people are adopting the light renovation concept in home design. This minimalist approach focuses on keeping as much of the existing major fixtures and fittings as possible, including pipes, electrical wiring, layout, ceiling, flooring, cupboards and worktops.

The emphasis is on furnishing – cleverly using furniture, accessories, decorations and plants to create your interior style. This helps you save on the overall home renovation cost and can shorten the time it takes from months to just a couple of weeks.

Interior designers plan your home space with their aesthetic sense. But their services aren't cheap and can cost you around 20% to 30% of your home renovation cost. If you're looking to save money, consider using free 3D virtual interior design software to experiment with different decoration styles and furniture.

To make the most of every inch of their home and to increase storage space, many people go for custom-made furniture. However, bespoke furniture takes longer to make and can cost a lot more. Meanwhile, there are more and more shops and online stores where you can find the ideal furnishing items and a wide range of ready-made furniture in different sizes. Even mirror cabinets can be bought off the shelf for installation.

While you’re looking at furniture, consider pieces with built-in storage, like a platform bed or ottoman. These are useful for space optimisation and decluttering your living areas.

Even when you take on the project of creating a comfortable home yourself, the total home renovation cost can easily exceed HKD100,000.

If your renovation budget is tight or you'd like to enjoy better liquidity, applying for a personal loan may be a good option. For example, the HSBC Personal Instalment Loan offers you a flexible repayment period and can finance your furnishing expense. Also, there is no handling fee and it allows you to redraw the amount you repaid again whenever you need to.

According to the Consumer Council, the Hong Kong Building Inspection Association recommends splitting home renovation payments into 4 to lower the risk. Only make the final payment after work is done with no issues. Take a HKD400,000 home improvement project as an example:

A personal instalment loan helps you stay in control of your budget and enjoy greater financial flexibility. Let's say you borrow HKD400,000 for your home renovation. If the flat rate per month is 0.40% and the annualised percentage rate (APR) is 9.29%, you'll repay HKD23,822.30 each month for 18 months.

To find out more about personal loans, feel free to call us on (852) 2748 8080, or apply online now.

To borrow or not to borrow? Borrow only if you can repay!