🏠 RENOVATE = INCREASE PROPERTY VALUE | SMART INVESTMENT

Renovation Loan Malaysia

Finance Your Home Renovation & Increase Property Value

Kitchen | Bathroom | Extension | Full Makeover | RM10k-150k

RM150K
Maximum Loan Amount
24 Jam
Fast Approval
+RM300K
Property Value Increase Potential
Apply for Renovation Loan →

Malaysia Renovation Cost Reality 2025

Complete Cost Breakdown: Apartment vs Landed Property Renovations

🏢

Apartment / Condo Renovation

Strata property (900-1,500 sqft typical)

💡 Basic Refresh (Cosmetic Only)

Painting entire unit:RM5,000-8,000
Vinyl flooring replacement:RM6,000-10,000
New ceiling lights:RM2,000-4,000
Minor plumbing fixes:RM1,500-3,000
Total:RM15k-25k

⭐ Mid-Range Upgrade

Kitchen cabinet replacement:RM15,000-25,000
2 bathrooms renovation:RM12,000-18,000
Flooring (tiles + wood):RM12,000-18,000
Built-in wardrobes (3 rooms):RM15,000-22,000
Electrical rewiring + sockets:RM8,000-12,000
Painting + plaster ceiling:RM8,000-12,000
Total:RM70k-110k

💎 Premium Full Makeover

Designer kitchen (island + appliances):RM40,000-65,000
2 luxury bathrooms:RM25,000-40,000
Marble/hardwood flooring:RM25,000-40,000
Custom built-ins + feature walls:RM30,000-45,000
Smart home system:RM12,000-20,000
Premium lighting + A/C:RM15,000-25,000
Total:RM150k-240k
🏡

Landed Property Renovation

Terrace / Semi-D / Bungalow (1,500-3,500 sqft)

💡 Basic Maintenance & Refresh

Exterior + interior painting:RM12,000-18,000
Roof repair/replacement:RM8,000-15,000
Waterproofing:RM5,000-10,000
Garden/driveway cleaning:RM3,000-6,000
Total:RM28k-50k

⭐ Mid-Range Full Renovation

Kitchen renovation:RM25,000-40,000
3-4 bathrooms renovation:RM25,000-40,000
Flooring (tiles + parquet):RM25,000-40,000
Built-in furniture (4-5 rooms):RM30,000-50,000
Electrical upgrade + wiring:RM15,000-25,000
Plumbing overhaul:RM10,000-18,000
Painting + minor structural:RM18,000-30,000
Total:RM150k-240k

💎 Extension + Luxury Renovation

Single-storey extension (300 sqft):RM90,000-150,000
Luxury kitchen + island:RM60,000-100,000
4 luxury bathrooms:RM40,000-70,000
Premium flooring (marble/hardwood):RM50,000-80,000
Complete smart home:RM25,000-40,000
Landscaping + outdoor:RM30,000-50,000
Premium finishes + built-ins:RM50,000-80,000
Total:RM350k-570k

Room-by-Room Renovation Costs

🍳 Kitchen Renovation

Basic refresh (paint + countertop):RM8k-15k
Mid-range (new cabinets + sink):RM15k-30k
Premium (island + built-in appliances):RM40k-80k

🚿 Bathroom Renovation

Basic (retile + fixtures):RM5k-8k per bathroom
Mid-range (wet + dry + heater):RM10k-18k per bathroom
Luxury (rainfall shower + bathtub):RM20k-40k per bathroom

🛏️ Bedroom Renovation

Basic (paint + flooring):RM3k-6k per room
Mid-range (+ built-in wardrobe):RM8k-15k per room
Premium (+ feature wall + custom):RM15k-30k per room

🛋️ Living/Dining Area

Basic refresh:RM8k-12k
Mid-range (+ TV console + display):RM18k-30k
Premium (+ full built-ins + marble):RM40k-70k

Renovate vs Relocate: Which Makes Financial Sense?

Detailed ROI Analysis to Help You Make the Right Decision

Decision Framework: 5 Key Factors

1️⃣ Current Property Value & Renovation ROI

✅ RENOVATE if:

  • • Your property value is below neighborhood average
  • • Renovation can bring it up to par
  • • Expected property value increase > 150% of renovation cost
  • • You're in a mature, established area with limited new supply

Example: Your terrace worth RM450k, neighborhood average RM550k. Spend RM80k renovate → property becomes RM530k. Net gain: RM80k!

❌ RELOCATE if:

  • • Your property already at neighborhood ceiling
  • • Further renovation won't increase value much
  • • ROI < 120% of renovation cost
  • • You can get better property in better location for same total cost

Example: Your apartment worth RM550k (already max for that condo). Spend RM100k renovate → still worth RM550-580k max. Better to sell + top-up RM100k for RM650k unit in better location.

2️⃣ Hidden Costs of Moving

Calculate TRUE cost of relocation:

Real estate agent fee (3%):RM15,000 (on RM500k property)
Legal fees (SPA + Loan):RM8,000-12,000
Stamp duty (if upgrading):RM10,000-20,000
Renovation of new property:RM30,000-80,000
Moving costs + interim rent:RM5,000-10,000
Total relocation cost:RM68k-137k

💡 This means: You can do a RM50k-100k renovation and still spend LESS than relocating!

3️⃣ Lifestyle & Location Fit

✅ RENOVATE if you love:

  • • Your neighborhood (friends, community)
  • • Kids' school nearby (no disruption)
  • • Workplace proximity (short commute)
  • • Mature trees, established area
  • • Low maintenance fees (older condo)

🔄 RELOCATE if you need:

  • • Better school district
  • • Closer to new workplace
  • • More space (4 beds → 5 beds)
  • • Landed property (currently apartment)
  • • Newer facilities (pool, gym, security)

4️⃣ Property Age Considerations

✅ Good to Renovate: 10-25 years old

Structure still solid, just cosmetically dated. Renovation brings modern look without major structural work. Best ROI window.

⚠️ Risky: 30-40 years old

May need rewiring, replumbing, roof replacement on top of cosmetic fixes. Costs add up fast (RM150k-300k). Consider if location is premium enough to justify.

❌ Not Worth: 40+ years old (unless heritage)

Structural issues, termites, foundation problems common. Renovation costs may exceed 50% of property value. Better to sell and upgrade unless prime location (e.g., TTDI, Bangsar landed).

5️⃣ Financing Impact: Renovation Loan vs New Housing Loan

Renovation Loan Advantages:

  • • Keep your existing low-interest housing loan (if locked at 3-4%)
  • • Smaller loan amount (RM30k-150k) = lower DSR impact
  • • No stamp duty, legal fees
  • • Can settle in 3-5 years
  • Total monthly commitment: Housing RM2,000 + Reno RM1,500 = RM3,500

New Housing Loan Challenges:

  • • New housing loan at current rates (4.5-5.5%) = higher interest
  • • Larger loan (RM400k-700k) = higher DSR (40-60%)
  • • Pay stamp duty + legal fees again
  • • Lock-in 30-35 years
  • Total monthly commitment: New housing loan RM3,200 (higher!)

💡 Smart Play: If your current housing loan is at 3.5% (locked during low-rate period), DON'T sell! Renovate instead and keep that golden rate. New buyers today pay 5%+.

Quick Decision Guide

Ask yourself these 3 questions:

1️⃣

Can I achieve my goals by renovating?

If yes → Renovate (cheaper). If no (need more space, different location) → Relocate.

2️⃣

Is my property value below neighborhood potential?

If yes → Renovate (good ROI). If already at ceiling → Relocate won't get much value increase.

3️⃣

Is my current housing loan rate better than market rate?

If yes (3-4%) → Renovate, keep the good rate! If no (already 5%+) → Less to lose by relocating.

Renovation ROI: Real Property Value Increases

Proven Data: How Much Each Renovation Adds to Your Property Value

🍳

Kitchen Renovation ROI

Highest ROI room in the house

Investment vs Value Increase:

Basic Kitchen Refresh (RM15k):

Property value increase:+RM25k-35k
ROI:165-230%

Mid-Range Kitchen (RM30k):

Property value increase:+RM50k-70k
ROI:165-230%

Premium Kitchen + Island (RM60k):

Property value increase:+RM80k-120k
ROI:135-200%

💡 Why kitchen ROI is highest: First thing buyers see, emotional center of home, expensive to renovate post-purchase.

🚿

Bathroom Renovation ROI

Second-best ROI

Investment vs Value Increase:

Basic Bathroom (RM8k per bathroom):

Property value increase:+RM12k-18k
ROI:150-225%

Wet + Dry Bathroom (RM15k):

Property value increase:+RM22k-30k
ROI:145-200%

Master Bathroom Luxury (RM35k):

Property value increase:+RM45k-65k
ROI:130-185%

💡 Tip: Renovate master bathroom to luxury level (rainfall shower, bathtub) for maximum impact. Guest bathrooms can stay basic.

🏗️

Extension / Addition ROI

Biggest value add (landed only)

Extension Investment vs Value:

Single Storey Extension 300 sqft (RM120k):

Additional space:+1 bedroom or enlarge living
Property value increase:+RM150k-200k
ROI:125-165%

Double Storey Extension (RM280k):

Additional space:+2 bedrooms + 1 bathroom
Property value increase:+RM350k-450k
ROI:125-160%

⚠️ Important: Extension ROI depends heavily on neighborhood. In prime areas (Damansara, Bangsar), ROI can hit 180-200%. In less developed areas, only 110-130%.

🎨

Flooring & Paint ROI

Good ROI for minimal investment

Cosmetic Upgrades:

Full Repaint (RM8k):

Property value increase:+RM15k-25k
ROI:185-310%

⭐ Highest ROI per ringgit spent!

Vinyl/Laminate Flooring (RM12k):

Property value increase:+RM20k-30k
ROI:165-250%

Hardwood/Marble Flooring (RM35k):

Property value increase:+RM50k-70k
ROI:140-200%

💡 Best value play: Repaint + vinyl flooring (total RM20k) → value increase RM35k-55k = 175-275% ROI!

Calculate Your Renovation Loan

See Monthly Payment for Your Home Renovation Project

💡 Renovation loan rates: 6.5-9% APR depending on amount and tenure. Homeowners get better rates. Can pay contractor in stages as work progresses.

Renovation Success Stories

Real Homeowners Who Increased Property Value Through Smart Renovations

🏡

Lim Family, Cheras

2-Storey Terrace Extension + Full Renovation

Project Details:

Property bought (2015):RM480k
Renovation (2024):RM180k
Current value:RM780k
Net gain:+RM120k!

Loan: RM180k @ 7.2% APR, 7 years
Monthly: RM2,650

📖 Their Story:

Challenge: "We have 3 kids. Our 20-year-old terrace only had 3 bedrooms + 2 bathrooms. Kids getting older, need separate rooms. Thought about selling and buying bigger house, but we love this neighborhood - kids' school walking distance, my parents nearby."

Decision: "Calculated: To buy 5-bedroom house in same area = RM700k-800k. After agent fee + legal + stamp duty = need RM280k cash. OR renovate: Extend back + upstairs, add 2 bedrooms + 1 bathroom = RM180k."

Renovation scope:

  • • Single-storey extension (300 sqft): RM110k
  • • Kitchen renovation + island: RM35k
  • • 3 bathrooms renovation: RM20k
  • • Repaint + minor fixes: RM15k

Result: "Now we have 5-bedroom house perfect for our family! Got it valued last month for refinancing - agent said RM780k! We made RM120k in value PLUS we kept our neighborhood. Monthly RM2,650 loan easy to afford with both our salaries. Best decision ever! 🏠💚"

🏢

Ahmad & Siti, Kepong

Old Apartment Full Makeover for Resale

Investment:

Bought (auction):RM220k
Renovation:RM65k
Total invested:RM285k
Sold for:RM380k
Net profit:RM95k!

Loan: RM65k @ 8% APR, 3 years
Monthly: RM2,035
Duration: 4 months reno + 2 months sell

💼 Their Strategy:

Opportunity: "Found 25-year-old apartment at auction, RM220k (market value RM300k+). It was in terrible condition - original 1990s kitchen, bathrooms cracked, walls stained, ceiling water damage."

The plan: "We knew location was good (near LRT). Did research - similar units in good condition selling RM360k-400k. Calculated: Spend RM60k-70k renovation can sell RM380k = profit RM90k-100k."

Renovation breakdown:

  • • Kitchen full replacement: RM18k
  • • 2 bathrooms makeover: RM14k
  • • Vinyl flooring entire unit: RM9k
  • • Repaint + ceiling repair: RM8k
  • • Built-in wardrobes (2 rooms): RM12k
  • • Minor plumbing/electrical: RM4k
  • Total: RM65k (on budget!)

Result: "4 months renovation done. Listed at RM388k, sold within 6 weeks for RM380k (buyer beat down a bit). After agent fee (RM11.4k) and loan interest (RM4k for 6 months), net profit RM80k. We used our renovation loan, paid interest only RM2k/month during reno, then cleared when sold. Great flip! 💪"

📊 ROI: RM65k renovation → RM160k property value increase → 245% return in 6 months!

🍳

Rachel Tan, Mont Kiara

Strategic Kitchen Reno Before Selling

Smart Move:

Condo value (old kitchen):RM720k
Kitchen renovation:RM48k
Sold for (after reno):RM820k
Net gain:+RM52k!

Loan: RM48k @ 7.5% APR, 5 years
Monthly: RM960
Paid: Only 3 months (RM2,880 total interest) before selling

🎯 Her Smart Strategy:

Situation: "I needed to sell my condo to upgrade. Agent came, said RM720k max. Reason? Kitchen was 15 years old - laminate cabinets peeling, countertop stained, tiles cracked. Everything else OK, but kitchen really turned off buyers during viewings."

Agent's advice: "She said: 'If you renovate just the kitchen, I can list at RM800k+. Buyers in Mont Kiara want modern kitchen - it's a dealbreaker. Other units with nice kitchens selling RM800k-850k.' I calculated: Spend RM50k, potentially gain RM80k-100k. Worth it!"

The renovation: Applied for RM48k loan. Used it for complete kitchen transformation - new cabinets with soft-close, quartz countertop, undermount sink, pull-out drawers, under-cabinet LED lighting, tile backsplash. Took 3 weeks.

The payoff: "Listed at RM808k with professional photos showing the new kitchen. Got 5 viewings in first week. 2 offers! Accepted RM820k. Kitchen was THE selling point - buyers loved it. After loan interest (RM2.9k for 3 months) and agent fee, I netted RM52k MORE than I would have without renovating. Easiest RM52k I ever made! 🎉"

💡 Lesson: If selling within 6-12 months, strategic renovation (especially kitchen) can boost sale price far more than the cost!

Renovation Loan FAQ

Common Questions About Financing Home Renovations

1. Can I pay the contractor in stages using the loan?

Answer: YES! This is actually the RECOMMENDED way.

Standard Renovation Payment Schedule:

Stage 1: Deposit (10%)

When: Sign contract
Pay: 10% of total cost
Work starts: Demolition, site prep

Stage 2: Structural Complete (30%)

When: All hacking, plumbing, electrical done
Pay: 30% of total
Milestone: Infrastructure in place

Stage 3: Installations (40%)

When: Cabinets, flooring, tiles installed
Pay: 40% of total
Milestone: Major items in place

Stage 4: Completion (20%)

When: Painting done, fixtures installed, cleanup
Pay: Final 20%
Milestone: Project 100% complete, defects fixed

✅ How it Works with Renovation Loan:

  • • We disburse full loan amount to your bank account (not contractor)
  • • You pay contractor according to stages above
  • • If contractor disappears/does bad work, you still have remaining funds
  • • You start paying monthly installment from loan approval (not when you pay contractor)
  • • Keep all receipts for warranty claims later

2. What if renovation costs exceed the loan amount?

Answer: You have 3 options.

Option 1: Top-up with Cash

Use loan for main work, pay extras with savings. Common for unexpected issues or upgrades.

Example: Loan RM80k for kitchen + 2 bathrooms. Found termite damage during demo (RM12k fix). Pay termite treatment cash, use loan for planned work.

Option 2: Apply for Top-up

If costs significantly exceed estimate (20%+), apply for loan top-up. Can approve in 1-2 days.

Example: Original loan RM100k. After demolition, discovered major plumbing issues need RM30k. Apply for RM30k top-up → total RM130k.

Option 3: Reduce Scope

Cut non-essential items. Many homeowners do kitchen + bathrooms first, other rooms later.

Example: Planned RM150k full reno. Loan approved RM120k. Do kitchen (RM40k), bathrooms (RM25k), flooring (RM30k), electrical (RM25k) now. Delay built-in wardrobes (RM30k) to next year.

💡 Pro Tip: Apply for 10-15% MORE than your quote. Renovation ALWAYS costs more than estimated due to hidden issues, changes mid-project, or price increases. Better to have extra buffer.

3. Do I need quotations or contractor details to apply?

Answer: NO quotation needed for approval. YES for disbursement.

Two-Stage Process:

Stage 1: Loan Approval (24-48 hours)

Documents needed:

  • ✓ Your IC + payslips
  • ✓ Property ownership proof (grant/title)
  • Rough renovation budget (just tell us "kitchen + 2 bathrooms, around RM50k")
  • ✓ Bank statements (3 months)

At this stage: We assess your affordability and approve loan amount. NO contractor details needed yet.

Stage 2: Loan Disbursement

Additional documents:

  • ✓ Contractor quotation (can be simple)
  • ✓ Contractor details (company name, SSM)
  • ✓ Signed contract (if available)
  • OR simple renovation plan if DIY/direct hire

Timeline: Submit quotation after approval → we disburse within 24 hours. Total: 3-4 days from application to money in account!

💡 Flexibility: Some homeowners apply for loan first (get approval), THEN find contractor and negotiate better (because you have confirmed budget). Others have contractor ready. Both ways OK!

4. Can I renovate rental property (I don't live there)?

Answer: Yes, absolutely!

Investment Property Renovation Strategy:

Common Scenario: Increase Rental Value

Before renovation:

  • • Old 3-bed apartment, RM1,200/month rent
  • • Tenants complain: kitchen old, bathroom tiles cracked
  • • Turnover high (every 1-2 years)

After RM40k renovation:

  • • New kitchen, renovated bathrooms, fresh paint
  • • Rent increased to RM1,600/month (+RM400)
  • • Better tenants, longer stay (3-5 years)
  • • Property value increased RM60k-80k

ROI calculation:
• Renovation loan RM40k @ 7% APR, 5 years = RM792/month
• Rental increase = +RM400/month
• Net cost to you: RM392/month (50% covered by rental increase!)
• Plus property value +RM70k average
Excellent investment!

✅ Requirements for Investment Property Renovation Loan:

  • • Property must be under your name (ownership proof)
  • • Loan application under your name (owner)
  • • If currently rented, tenant agreement to access during renovation
  • • Typical practice: Wait for tenant to move out, renovate, then rent at higher rate

5. What if the contractor runs away or does bad work?

Answer: You still need to repay the loan, BUT here's how to protect yourself.

⚠️ Important Understanding:

The Harsh Reality:

Renovation loan is a personal loan, not contractor insurance. If contractor disappears/does bad work, you're still legally obligated to repay the loan. The lender loaned money to YOU, not the contractor. This is why contractor vetting is CRITICAL.

✅ 7 Ways to Protect Yourself:

1. Pay in Stages (10-30-40-20 method)

NEVER pay 50%+ upfront. If contractor disappears after 30%, you still have 70% to hire someone else to complete.

2. Check Contractor Registration

Verify SSM registration, CIDB license (for structural work), past project photos, Google reviews.

3. Get Written Contract

Must include: scope of work, timeline, payment schedule, warranty period, penalty clause for delay.

4. Visit Past Projects

Ask to see 2-3 completed projects. Talk to previous clients. Red flag if refuse to show.

5. Get 3 Quotations

Compare prices, scope, timeline. If one quote is 40%+ cheaper than others, be suspicious (may cut corners or use low-quality materials).

6. Withhold 20% Until Defects Fixed

Final 20% payment only after punch list completed and all defects fixed. This motivates contractor to do quality work.

7. Document Everything

Take photos/videos at each stage, keep all receipts, WhatsApp messages as evidence if dispute occurs.

💡 If Things Go Wrong:

  • • Stop payment immediately (pay only for completed work)
  • • Document all defects with photos/videos
  • • Send formal notice to contractor (registered mail)
  • • Give 14 days to rectify
  • • If no response, hire new contractor with remaining funds
  • • File KPKT/Tribunal Pengguna claim for losses (can claim up to RM50k)
  • • Report to CIDB if contractor is registered (may suspend license)

Best Practice: Use established renovation companies (eg: Recommend.my, Kaodim platforms) where there's rating system and dispute resolution. Slightly more expensive but much lower risk than random Facebook contractor.

🏠 TRANSFORM YOUR HOME | INCREASE PROPERTY VALUE

Ready to Renovate Your Home?

Finance Your Dream Renovation & Add RM50k-300k to Property Value

Why Homeowners Choose Our Renovation Loan:

Pay Contractor in Stages

Protection against bad contractors (10-30-40-20 method)

Fast Approval (24-48 hours)

No quotation needed for approval

💰

Up to RM150,000

Kitchen, bathroom, extension, full makeover

📈

Increase Property Value

ROI: 130-300% depending on renovation type

Apply for Renovation Loan Now →

⏱️ Approval dalam 24-48 jam | 💳 Pay contractor in stages | 🏠 Homeowners & investors welcome | 📈 ROI 130-300%