House Renovation Budget: Example & How to Create One

Nowadays, many people prefer renovating an old house rather than buying a new one. One of the main reasons is that a house renovation budget can be adjusted to fit your financial situation.

Renovations can be done in stages, especially if your budget is limited. Additionally, house renovations can increase property value. Therefore, creating a detailed renovation budget plan is crucial.

If you're still unsure how to create one or need an example of a house renovation budget, keep reading until the end for a full explanation.

How to Create a House Renovation Budget 

A house renovation budget is a financial plan that details the estimated costs involved in a renovation. It includes various components such as labor, materials, services, and other expenses.

To avoid errors during renovation, the renovation budget must be prepared carefully. Here are some steps to create a renovation budget plan:

1. Gather Existing House Data

Gathering data on your house’s current condition helps sketch the starting point before the renovation. This way, you can identify areas that need renovation and those still in good shape. The more detailed your existing home data is, the more accurate your budget plan will be.

2. Create a Renovation Design

Before starting, create a renovation design, whether for temporary or permanent changes. A new design allows you to compare it with the old structure, which helps in budgeting. Additionally, the design can serve as a requirement for building permits.

3. Estimate Costs for Materials and Services

Estimate the costs for materials and services based on your financial situation. Generally, there are a few payment methods for RAB, including daily, full-package, or contract-based services.

With a full-package contract, both materials and labor are typically included, costing around IDR 2.5 to 4 million per square meter, depending on the materials used. For labor-only contracts, costs range from IDR 1 to 1.5 million per square meter.

4. Estimate Labor and Unexpected Costs

Whether renovating a modest or luxurious home, you must accurately estimate labor and other expenses. If you opt for a daily system, labor costs are usually around IDR 125,000 to 150,000 per day. Set aside a contingency budget for unexpected expenses, such as increases in material costs or new furniture.

Example of a Simple House Renovation Budget for a Type 36 House

Now that you know how to create a renovation budget plan, here’s an example to give you a clearer picture. Let’s say you want to renovate a Type 36 house; what would the costs look like?

A Type 36 house typically requires a land area of about 60 square meters. Although it’s not large, you should carefully consider all renovation needs. Below is an example of a budget plan for a simple renovation of a Type 36 house that you can use as a reference.

That’s the information about how to create a house renovation budget plan along with an example that you can use as a reference. Each house will have a different budget depending on the type and extent of the renovation.

So, you can adjust the budget details according to your renovation needs. Hopefully, this example has given you a clear picture. To make the renovation process smoother, you’ll need high-quality building materials. Don’t worry, you can find them at Semen Merah Putih.

Semen Merah Putih offers high-quality cement products, including Semen Merah Putih Watershield. This product features water-resistant technology, like a lotus leaf, preventing water seepage, dampness that causes mold on the wall.

If you need concrete, Semen Merah Putih, through its subsidiary Merah Putih Beton, also offers various concrete products, including ready mix, precast, aggregate, and more. These products can be customized to fit your renovation needs.

Interested? Contact us now to get updates and place orders for Semen Merah Putih products. Make your dream house a reality with strong, high-quality building materials from Semen Merah Putih!