BTO vs. Resale Flat Renovation: How Much Does Each Cost?

BTO vs. Resale Flat Renovation: How Much Does Each Cost?

The exciting process of buying your own place and creating the home of your dreams! As thrilling as this moment in your life is going to be, it will also be connected to some uncertainty. Financial considerations top the list and they’ll have a significant impact on your decision.

When considering the prospects of buying property in Singapore, you will have to take a look at two main options. The first one is acquiring a built to order (BTO) apartment. The second possibility is getting a resale flat and doing a renovation to personalise its appearance.

There’s a misconception that the cost of renovating after acquiring a resale flat and the cost of a BTO apartment personalisation are the same. This isn’t the case. The scope of the renovation, the interior design company in Singapore you hire for the job, the size of the apartment and the materials you choose will all play a role and affect the overall cost in one way or another.

Buying a BTO Apartment: When Is It a Good Idea?

BTO apartments usually come unfurnished. Depending on the OCS (Optional Component Scheme) item made available by HDB for your BTO type and your preferences, it may be possible to get add-ons like sanitary fittings, doors and flooring already pre-installed.

It is up to you to begin modifying and filling up the empty spaces from that point forward.

BTO apartments usually cost anywhere between 20 and 30 per cent less than resale flats. When acquiring this type of property, however, you should also be thinking about home interior design ideas, furniture and accessory acquisition.

In our expert opinion, making a BTO flat ready for a move-in will cost you approximately 20,000 to 50,000 dollars on top of the property’s price.

The cost of making a BTO apartment liveable depends on numerous things. The size of the flat and the specifics of the furniture you want to get will matter the most. Carpentry work, the selection of flooring and additional interior modifications will contribute to a higher cost.

To sum it up, the lower cost of getting a BTO apartment will be offset by the amount you will need to invest in personalising the home. There’s one additional factor to keep in mind. New built-to-order apartments tend to be smaller than older HDB flats. If you have a larger family that will need more space, this is another factor to consider before making up your mind.

Renovating a Resale HDB Apartment

Renovating an apartment that somebody else has already lived in is the second possibility but how will it affect your finances?

In this instance, it’s very important to look at multiple flats and to assess the scope of renovations in advance. Some properties will be well maintained and the need for renovations will be limited. In other instances, a lower price will be balanced out by a flat that’s in dire need of extensive renovations.

It’s possible for real estate buyers to come across an apartment that is in a good condition. Though the style of the previous owner may be different, the property could be in a good condition. In such instances, there will be no need to do immediate modifications. As time goes by, you will acquire the funds needed to make the property correspond to your personal taste.

A general rule of thumb is that the older the apartment, the more expensive it will be to modernise and renovate.

Statistics suggest that the average amount currently spent in Singapore on the renovation of HDB apartments is 67,000 dollars. This is a bigger sum than the amount mentioned for the tailoring of a BTO flat.

Some of the costliest things to renovate in an HDB flat include structural work, rewiring, wet work, flooring and ensuring energy efficiency.

The cost of furniture acquisition is not included in the calculations presented so far. Many resale apartments will come with furniture and accessories. Chances of these items appealing to you, however, are slim. To make the place feel like home, you will most likely have to acquire new furniture – an additional sum on top of the amount required for the renovation of the flat.

A Few Additional Considerations

Generally speaking, BTOs are cheaper to acquire and renovate.

The decision, however, comes down the personal preferences and budget. It may be possible to come across a resale HDB flat that’s in an ideal condition and that will necessitate solely cosmetic changes. In such instances, a skilled interior design professional will do a couple of quick tweaks that will yield an excellent outcome.

When considering these two options, you should also think about the future value of the property. Regardless of your intentions right now, you may have to sell in the future.

Most BTOs will sooner or later become resale flats. With the tweaks and the improvements carried out, they will appreciate in price. From this point of view, a BTO makes more sense as a property investment option.

Finally, think about hiring the right contractors and choosing a reputable interior design company to oversee the efforts.

Experienced interior designers will take your budget in consideration. Such professionals will know the best materials and furnishing that will give you the outcome you’re hoping for without going overboard with the expenditure.

The Home Guide team consists of such professionals. We will be glad to assist you, whether you decide to buy a BTO flat or a resale HDB apartment. Extensive experience with both types of projects enables us to tailor the place to the owner’s needs while also remaining inside the budgetary framework.

Please take a look at our portfolio to get a better idea about the residential interior design work we’ve done in the past. Alternatively – contact us today to let us know a bit more about the property you’ve bought and the types of modifications you’re looking forward to executing.

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