Should you take a renovation loan

Yes or No to Renovation loan in Singapore

Buying a house in Singapore is expensive however it is still possible for families to own one. Additionally with mandatory CPF savings, the upfront payment for a house can be paid off easily.

Apart from getting the house, what other other cost that you need to consider?
Renovation cost at least $15,000 to $30,000.
Furniture ranging from $10,000 to $15,000.
Other miscellaneous cost such as curtains, kitchen and storage racks about $1,000 to $3,000.
Electrical, lighting and painting cost $2,000 to $4,000.
Toiletry and kitchen items $500 to $1,000.

Are you getting a new house or moving to a new property?
For new homes, renovation is essential as the house will be in bare bone condition. Thus, it is recommended for home owners to start saving money 1 or 2 years ahead before purchasing their houses. Apart from renovation, there will be additional electronics and furniture cost.

Here is a list of items that you should consider before rushing to complete your house.

Is your current salary enough to pay monthly mortgage loans?

Would you have an emergency funds after your home completion?

Apart from rushing to complete your house, do you have alternative accommodation, such as parent house?

Are you be able to sustain the loan with your CPF or savings if you go out of job?

Alternatively, are you looking to make a profit from selling this property after 5 years?

If there are more than 3 nos to the answers above, you should reconsider your property purchase.

What are the other cost to consider after house purchase?

Family plans such as welcoming a baby

Buying a transportation vehicle (optional)

Maintenance cost such as electrical, water and SC&C bills

Annual aircon repair, cleaning and festive decorations etc…

Yearly events which requires angbaos and gifts.

Monthly expenses

Ultimately, it is entirely up to personal choice when it comes to renovation loans. A good recommendation would be to carefully weight your current finance situation. Hence, it is best that you consult mortgage loan specialist you proceed with a renovation loan application.