Living in Singapore can be quite expensive. But acquiring a commercial property can be very rewarding and make your life much easier and better. Needless to say, such properties are a good source of income anywhere in world.
So, what is the first thing you do when you buy the space? Before you lease it to other investors or use it for your business, you must ensure the property is in good conditions. And that of necessity means you have to sit down and calculate the cost of renovations.
As you can imagine, commercial renovations are not joke. It is tiring and can be more expensive than what you used in buying the place.
You need a plan, a ballpark figure from which you can tell how much you should put aside. In other words, you must come up with a clear budget and a plan of the steps you want to follow with your work. Having a good financial plan is one way to give yourself a sense of direction.
However, it is still a tough task coming up with the costs. There are different variables that affect the general cost of such activities and you must be aware of them. Luckily we have discussed these factors to make it easy for you. Continue reading.
The type of property
What type of property are you working on? It is a condo? Or is it an office space? What does it have that needs to be handled first as a priority. This is where your ideas should start from. Do you have what it takes to make it happen? Does it have some fitting already? If so, much more touches does it require?
Each type of property has specific needs for renovation. It costs differently depending on this.
The age and condition of the property
It is vital to understand the extent of renovations needed on the property. This is one of the things you look out for even before you buy the place.
You can be sure to spend a fortune on an old rugged building. You have to determine your ROI before you start. Is it worth the trouble, or is it only going to take your money for nothing. This is a good point to start with because your budget depends on it.
How much work you want done
Every investor has to set priorities. As much as the renovations are good idea, it does not mean you have to handle everything. There is a specific extend to may want to get to, and that will determine how much you spend.
Materials you want to use
If you want the property to look great, you must be prepared to spend a fortune on the materials. Different materials come with different costs and that should give you a clear direction.
Every renovation firm charges differently for specific work. You need to choose one based on their cost of service and quality assurance.
These are the things to put in mind when making a renovation budget.