How to budget for your interior renovation?

Are you looking to renovate your home but worried about exceeding your budget? Budget management is one of the main concerns of any renovation project. Between hidden costs, unexpected expenses, and financing, knowing how to budget and control your expenses will allow you to carry out your project smoothly in the canton of Vaud.

The foundations of a successful renovation budget

Define your project

Before any cost estimate, you need to define the scope of your interior design project. Is it a complete renovation of your apartment or a partial refresh? Do you want to change the layout or just update the finishes?

This initial consideration shapes the entire budget structure. A complete renovation (kitchen, bathroom, floors, paint, electricity) inevitably costs much more than a simple refresh (coverings and decoration).

List the rooms, the planned work for each, your absolute priorities, and your secondary desires. This prioritization will allow you to adjust your budget if necessary.

The main spending categories

A renovation budget is generally divided into several main categories. The finishing work is usually the most expensive: plumbing, electricity, carpentry, painting, and tiling make up the bulk of the expenses.

Finishes and materials: flooring, tiles, paint – everything visible in your interior. This is where aesthetic choices influence the budget.

Furniture and equipment (kitchen, bathroom) are also a significant expense. Don't forget the fees or markup of the interior designer who oversees everything, and finally, a contingency fund for unforeseen circumstances.

Setting priorities

In the canton of Vaud, renovation costs can quickly escalate. Separating the wheat from the chaff becomes vital. Technical aspects such as plumbing, electricity, and insulation are absolute priorities.

Redesigns that optimize the use of your space are also an investment. On the other hand, some purely decorative elements or luxury furniture can be postponed if the initial budget is exceeded.

A good interior designer will help you define these priorities and phase your project wisely.

Hidden costs that are overlooked

Administrative fees and insurance

Beyond the construction work itself, other costs are often overlooked. Authorizations and permits from the municipality of Lausanne, even for interior work, can incur administrative fees.

Construction site insurance protects your investment in the event of damage during construction. While optional in some cases, it provides significant security, especially for large projects in the canton of Vaud.

Unforeseen technical issues

When starting a construction project, especially in old buildings, surprises often arise. An obsolete electrical installation that needs to be completely redone, rusty plumbing hidden behind walls, or unsuspected moisture problems can quickly inflate the bill.

These discoveries are not "unpleasant surprises" invented by craftsmen, but unforeseen technical realities that arise without demolition. This is why a margin for unforeseen events is necessary.

Additional costs are often overlooked.

Don't forget to factor in moving or storage costs if you can't live on-site during the renovations. Post-construction cleaning is another expense, as is any temporary accommodation you might need.

Post-construction connections and commissioning (gas, electricity, water) may require paid services from the utility companies. Finally, small additional purchases add up: light switches, door handles, hooks—all those details that complete your interior design.

Renovating on a small budget: it's possible!

Prioritize and phase intelligently

A small budget doesn't mean you have to abandon your renovation project. The phasing technique involves spreading the work over several periods. Start with the key rooms (kitchen, bathroom) and then move on to the secondary rooms.

This method has several advantages: you spread the investment, you adapt your vision according to the result of the first steps and you take advantage of the experience gained to improve the following steps.

An interior designer will be able to offer you a coherent overall vision while allowing for step-by-step implementation according to your budget.

Choosing the right materials

Budget optimization also involves making wise choices of materials. There are excellent alternatives to luxury products available today, offering very good value for money.

Your interior designer knows the market and can recommend competitive suppliers or premium-effect materials at a controlled price. Sometimes, mixing more affordable options in hidden areas with a few touches of luxury in key spots creates a wow effect without breaking the bank.

Keeping things in place

Not everything needs to be changed. If your old parquet flooring is in good condition, sanding and refinishing it will revive it for a fraction of the cost of replacement. Quality kitchen cabinets can be kept and simply repainted or fitted with new fronts.

This method also responds to an ecological approach that is increasingly popular in the canton of Vaud, by not throwing away elements that are still usable.

Participate in certain tasks

If you're handy, some of the work can be done yourself: preliminary demolition, painting, and installing simple coverings. This involvement reduces labor costs, but be realistic about your abilities to avoid doing more harm than good.

Talk to your interior designer who will be able to see what you can do without jeopardizing the project.

How to finance your renovation

Personal savings: the best option

Financing your renovation with your own funds remains the simplest and least expensive solution. With no interest to repay and no complex administrative procedures, you retain complete freedom of decision and avoid debt.

If your savings do not cover the entire project, they can at least constitute a substantial contribution that will facilitate obtaining additional financing from banking institutions.

Home Ownership Promotion (HIP)

If you own your home, you can use funds from your second pillar (occupational pension) to finance significant renovations. The minimum advance payment is 20,000 francs, and only one payment can be made every five years.

Advance payments can be used for renovation and conversion work aimed at maintaining the quality of the dwelling and the value of the building. This includes replacing a heating system, installing solar panels, or fitting a heat pump. However, only work directly affecting the living space is eligible, and it must not be considered extravagant.

The third pillar (3a) can also be used under the same conditions, with the added advantage that it is not refundable in the event of the sale of the property, making it an attractive solution for building up a "renovation fund".

The increase in the existing mortgage

If you already own a property with an existing mortgage, you can increase your mortgage to free up some of the equity tied to the property and obtain financial resources for investment projects such as renovations.

Banks typically allow loans of up to approximately 80% of your property's market value. If your property has appreciated since you purchased it and you've paid off part of your mortgage, you likely have some flexibility to finance your renovations.

This approach is particularly attractive because well-planned renovations generally increase the value of your property. When refinancing your mortgage later, this added value can be taken into account, potentially allowing you to access cash (equity withdrawal) while maintaining a healthy debt-to-income ratio.

Construction credit for major renovations

For larger projects, the bank can open a specific bank account with which you can pay the bills up to the agreed credit limit.

Once the renovation is completed, the amount used is usually converted into a mortgage.

This solution offers rigorous control of expenses and ensures that funds are used exclusively for your renovation project.

Public subsidies and aid

Depending on the nature of your project, you may be eligible for cantonal or municipal subsidies, particularly for energy-efficient renovations. The Buildings Programme offers financial assistance for improving the energy efficiency of housing in Switzerland.

Programs like Equiwatt in Lausanne also offer subsidies for the installation of energy-efficient equipment. Contact your municipality and the Cantonal Energy Office to find out which programs apply to your project. These subsidies can represent savings of several thousand francs and can be combined with other funding options.

The margin for unforeseen events: how much and why?

The principle of the safety margin

Any renovator will tell you: allowing a contingency for unforeseen events isn't pessimism, it's realism. This budgetary buffer allows you to absorb technical adjustments, discoveries made during construction, or simply changes of mind.

This margin typically ranges from 10% to 20% of the total budget, depending on the condition of your property and the extent of the work required. For an older apartment in the center of Lausanne, aim for the higher end of this range. For a newer apartment that simply needs a refresh, 10% is sufficient.

When should this reserve be used?

This contingency should not be used to pay for whims or improvements outside the scope of the project. It is intended for genuine unforeseen technical issues: a damaged beam that needs reinforcing, a waterproofing problem discovered during construction, or an electrical upgrade that is more complicated than anticipated.

A good interior designer manages this margin transparently, warning you before drawing on it and justifying each use.

What if nothing happens?

If your project is going well and the margin is maintained, you have several options: You can use it for additional finishing touches, buy better quality furniture or equipment, or simply keep it as available capital.

However, this remains the exception and not the norm in interior renovation, especially on old buildings in the canton of Vaud.

FAQ: Renovation Budget and Financing

What is the budget per square meter for a complete renovation in Lausanne and surrounding areas?

The budget per square meter depends on the level of finish and the initial condition of the property. For a standard renovation (floors, paint, kitchen, bathroom), expect a substantial budget. A high-end renovation with premium materials and custom-made fixtures will cost significantly more. These price ranges do not include interior designer fees or furniture. The condition of your property plays a major role in these estimates: a property requiring electrical and plumbing upgrades will increase the price.

Should you borrow money or wait until you've saved everything?

It depends on several personal factors. If your home needs urgent repairs (dampness, dangerous installations), don't wait. Similarly, if you've just bought a property in the canton of Vaud, grouping the work before moving in avoids disruptions later. On the other hand, for non-urgent cosmetic renovations, saving money avoids loan interest. An alternative is to finance the essential work immediately and then spread out the cosmetic improvements as you save. Also, keep in mind that postponing renovations can lead to the gradual deterioration of the property, resulting in higher costs in the long run.

How can I know if my budget is sufficient before I start?

The best approach is to consult an interior designer before starting your project. During an initial consultation, the professional will analyze your vision, identify any potential technical constraints, and provide a realistic budget estimate based on their experience with similar projects. This assessment allows you to confirm feasibility before investing time and money in detailed plans. You can also request quotes from tradespeople for major projects (kitchen, bathroom), which will help you refine your budget. Always remember to add a 15-20% contingency to your initial estimate.

Can I adjust my budget during the project if I save money elsewhere?

Yes, and it's quite common. If certain items are less expensive than expected, or if you find quality materials at a lower cost, you can reallocate those savings to other parts of your renovation. For example, if you save money on flooring, you can afford higher-end faucets or a custom-made feature that wasn't initially budgeted. Your interior designer will be able to guide you on the most judicious budget reallocations to optimize the overall impact of your project. This flexibility is part of an agile approach to managing your Lausanne renovation project.

HEMMAMIA Council

At HEMMAMIA, we know that budget is a key concern for any renovation. That's why we establish a clear and detailed budget plan from the outset, taking into account all aspects of your project.

Our method includes a realistic estimate based on our knowledge of the Vaud market, rigorous monitoring of expenses during construction, and transparent communication regarding any budget changes. We also assist you in finding the best financing options for your project.

Carry out your project with complete financial peace of mind.

Setting a realistic budget for your interior renovation is no easy task, but with the right information and professional guidance, you can transform your interior while controlling your investment.

Contact us now for an initial consultation where we'll discuss your project and provide a clear and transparent quote. Create your dream interior without any unpleasant financial surprises.