How much can you expect to spend on a home renovation?

Regular renovations are essential for maintaining the value of a property and ensuring its long-term use. In Switzerland, the term “renovation” covers both minor cosmetic improvements and more extensive work to maintain, modernize and preserve the value of a property. This is particularly true for older properties. More than 50 percent of Swiss residential buildings are over 50 years old and often no longer meet current technical standards or expected levels of comfort. As the property ages, the need for renovation increases.

To avoid unforeseen costs and ensure your budget is reliable, start planning for renovations early and systematically. Experience has shown that setting aside reserves of at least 1 to 1.5 percent of the building’s insured value each year is prudent. In this way, you lay a solid foundation for upcoming investments. If you require additional financing, you might consider options such increasing your mortgage or taking out a building loan.

The life cycle of the individual building elements provides a valuable guide for planning upcoming renovations. In addition to average service life, your individual needs, available financial resources and legal requirements should also be considered when setting priorities.

A structured approach is particularly recommended for extensive renovations. Good practice has shown that it is best to start by renovating and insulating the building envelope – i.e. the windows, facade and roof. Only then should you replace technical systems such as the heating and, finally, modernize the interior. You can avoid installing a new kitchen before outdated pipes have been replaced, or installing efficient heating while heat is still being lost through leaky windows.

If you have purchased a house in need of renovation, where a number of repairs will to be completed at the same time, we recommend you obtain an expert property assessment on the basis of which you can draw up a detailed renovation plan. As a general rule, existing defects should be repaired first. Ideally, a renovation should then proceed from the outside in.

Before you start calculating costs, you should be clear about your aims: Are you looking to remedy urgent defects, or do you want specifically to increase the value and quality of your property? From isolated partial renovations to comprehensive total renovations, costs can vary considerably depending on the scope and complexity of the project.

If your home only needs minor work, you can usually maintain its condition over several years by focusing on specific individual improvements. However, if serious defects are discovered, comprehensive renovation is often deemed necessary, with all the work grouped together and carried out efficiently. In such cases, a cost comparison is worthwhile, so check whether a complete renovation or an entirely new build would be the more economical solution in the long term.

Just how much will renovating your property cost?

The cost of renovation depends on a few things. Aside from the work you choose to do, the price of materials, labor and any work you do yourself will all affect your budget. If you are handy, you can save costs by doing the work yourself and only have to invest in materials. Otherwise, you will need to pay additionally for professional craftsmanship.

The market situation also matters: you can save when material prices are low or by timing your renovation well. For larger renovations, you should also take possible additional costs for temporary accommodation or special requirements for historic buildings into account. If you need financing, you will also have to pay interest on loans or renovation mortgages.

You should plan renovations based not only on the current condition and functionality of the individual building elements, but also on their average service life. This varies considerably depending on the component. While facades or pitched roofs often only need to be replaced after 40 to 50 years, heating systems or kitchens need to be replaced after a much shorter period of time.

The costs for individual renovation work vary depending on the scope and quality. Below are some guidelines for typical renovations:

Hidden renovation costs and unexpected expenses

The full cost of a renovation depends on numerous factors, including the type and scope of the planned measures, the condition of the property, regional price differences and individual preferences regarding quality and fittings. Careful planning and realistic cost estimates are crucial to avoid unwelcome financial surprises.

In addition to the obvious expenses for materials and labor, you should also take hidden and unexpected costs into account. We recommend setting aside a reserve in your budget for unforeseen expenses and seeking advice from experts if you are unsure about anything.

Plan renovation costs realistically

A long-term strategy for renovations and maintenance work is the basis for sound financial planning. Take into account not only the condition of the building, but also the current market situation and the value of your property. In a good market, comprehensive renovations can make sense, while in less favorable times, only the most urgent repairs may be worthwhile.

Before purchasing a property, we recommend that you estimate the expected renovation costs as realistically as possible. This will put you in a better negotiating position and protect you from unexpected expenses. When necessary, consult with experienced professionals to obtain a sound forecast of expected costs and to avoid unpleasant surprises.

Renovating your property not only gives you the opportunity to maintain its value and make it more comfortable, but can also have a positive effect on your taxes. For tax purposes, a basic distinction is made between work that maintains value and work that increases value.

If you are unsure which renovation costs are tax deductible or the best way to plan your project, we recommend seeking individual advice from experts or your tax advisor.