Renovation Budget Overrun? Things to Know about Renovation Quotation and Renovation Loan | Creating your Dream House

With the high land price in Hong Kong, buying an apartment in this city has never been easy. Given the opportunity to own a flat, homeowners want to turn their home into a dream house definitely. However, everything costs when it comes to home renovation, and it only adds to the complexity after receiving a quotation with numerous items. This article will share some smart renovation tips and points to note for reviewing renovation quotations and comparing renovation loans. Hope that you can take steps to become a smart homeowners and have your dream house! There is nothing to worry about even if your home renovation plan goes over budget. It can be handled easily through renovation loans!

Smart Renovation Tips:

1. Compare Prices from Different Renovation Companies
   Quotations from different renovation companies can vary significantly, so it is better to compare their prices, reputation, and quality of work before making decision. To further reduce the renovation cost, you may consider to compare renovation materials between online shops and physical stores, in order to find cheap and cheerful products.
2. Define Renovation Details Clearly
   Being the owner of your dream house, you should have a clear understanding of the design style and layout. Before the renovation starts, all requirements such as door opening directions and paint colour should be listed clearly, and we need to ensure the contractors thoroughly understand on all renovation requirements. Otherwise, problems may occur during the renovation process which may bring you extra costs and unnecessary financial burdens.
3. Choose Ready-Made Furniture
   Custom-made furniture can be time-consuming and costly, while the installation may cost you extra either. To lower the costs listed on the renovation quotation, you may consider to buy ready-made furniture. Many furniture stores in Hong Kong offer a variety of stylish and chic ready-made furniture, you will be able to choose your favoured items easily. Besides, you can change your home style based on the latest trend easily by adopting ready-made furniture.

3 Things You Must Know about Renovation Quotations

While smart renovation strategies mentioned above may help you to lower the risk of budget overruns, it is still not a fool proof solution. To further avoid exceeding your renovation budget or having any uncompleted renovation work, you should pay close attention to the following tips after receiving the renovation quotation.

Point 1: Review the Renovation Quotation in Details

1. Detailed breakdown of various works
2. Unit breakdown
3. Unit price
4. Sum total
5. Project total amount
6. Calculation of labour and material costs
7. Methods of payment
8. Terms of contract
9. Contract period
10. Calculation of insurance premium

According to the Consumer Council and the Hong Kong Building Inspection Association, a comprehensive renovation quotation should include the above ten items. However, many renovation companies in Hong Kong may only provide the total amount without specifying detailed information. Therefore, homeowners need to pay close attention and be vigilant to avoid unnecessary expenses.

Point 2: Establishing Defect List and Demolition Items

Before signing the contract, it is advisable to communicate with the renovation company clearly about defects rectification. After the project is completed, there are usually minor defects or omissions that require further work. Homeowners should protect their own interests by explicitly stipulating that, final payment will only be paid once all incomplete or remaining parts are repaired, to ensure that the final outcome is satisfactory.

In addition, homeowners should also decide items that need to be demolished or retained while signing contracts. Agreements should be made regarding compensation or handling methods, in case any item is damaged during the demolition process. It is also necessary to check whether the renovation quotation includes charges for disposal of construction waste.

Point 3: Instalment Payments

Since renovation projects generally involve hefty amounts of money, instalment payments are commonly accepted. The Hong Kong Building Inspection Association suggests that the payment should ideally be divided into four phases:

• The first instalment, ideally, should not exceed 40% of the total project cost. Otherwise, if the project is left uncompleted in the early stage, consumers may incur significant losses.
• The quotation should specify clear criteria, outlining the payment time for each instalment, such as according to the unit completed or the contract period.
• Avoid setting time frame using vague criteria that are difficult to quantify, such as "30% completion of the project."
• It is preferable to make the final payment after the completion of the project and its acceptance after inspection.

How to Choose Renovation Loan?

After reading above smart renovation strategies and reviewed the details of the renovation quotation carefully, what are the solutions if one still encounters issues such as budget overruns? While various banks offer renovation loan service for those who are considering renovating with insufficient funds, the loan application process usually requires income proof documents, which may not be suitable for those without a fixed income. Did you ever consider that personal loan can be a way out to encounter the budget overrun issue? You can apply Promise's Instant Personal Loan with only your mobile phone number and HKID card^#. Your loan application, agreement signing, and fund transfer can all be completed online, making the loan process be more convenient! Even facing budget overrun in the renovation, Promise is here to help you to resolve any financial concerns, allowing you to make your dream house come true.

Facing a budget overrun in your renovation and need cash urgently? Promise's Instant Personal Loan is here to help you:

• No Supporting Documents Required^#: Even without an income proof, Promise will always get your back.
• No Need to Show Up in Person^*: Your loan application, agreement signing, and fund transfer can all be completed online.
• Online Instant Approval^⦿: Promise offers online instant approval, application process is simple and fast!
• Faster Payment System (FPS) Instant Transfer^{^}: Promise transfers funds instantly with FPS once your personal loan application is approved!

Last but not least, regardless of traditional renovation or low-cost renovation, all is to maintain the most ideal living environment for your family to enjoy the life in the future. Hopefully all tips and information provided above are helpful for you to manage your renovation budget more easily and everyone can turn the home into a dream residence, embracing a wonderful family life.

If you would like to apply loan for your renovation, you may find out more about Promise latest offers!