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The economics of a festive home makeover: Where should homeowners spend, and where should they save?
Festive discounts can encourage bigger home purchases. An expert explains where homeowners should spend more and where they can save.
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The festive season can make any homeowner want to renovate their home. But a festive makeover doesn't always mean spending a lot on home decor. The desire may go from upgrading a kitchen or wardrobe to adding new furniture, lighting or decor; homeowners may find themselves considering several purchases at once. But when the makeover involves multiple expenses, deciding where to spend more and where to save can become just as important as choosing what to buy.
According to Kota Rajasekar, CFO of MagickHome, a sensible home makeover budget is not necessarily about spending the least. Instead, homeowners should understand what they are paying for, how frequently they will use a product and how long it is expected to last.
Start with the things you will use for years
When planning a home makeover, homeowners can begin by identifying the elements that are difficult or expensive to replace later. “Kitchens, wardrobes and built-in storage fall into this category,” says Rajasekar. These elements are used frequently, and changing them later can involve more than simply purchasing a replacement. Installation, modifications and associated expenses can add to the overall cost. Rather than comparing products only by their initial quotation, he suggests considering factors such as materials, hardware, functionality, warranty, and expected lifespan. A higher upfront price does not necessarily mean poor value if the product offers greater durability or better functionality over several years. At the same time, a more expensive option shouldn't automatically be the better choice.
Where should homeowners spend more on a home makeover?
For larger, everyday purchases, it can make sense to focus more on functionality and durability. A kitchen, for instance, needs to accommodate the household's cooking habits and storage requirements. Similarly, a wardrobe should provide sufficient usable storage rather than simply looking attractive. Rajasekar points out that a product's functionality can eventually have financial consequences. A poorly planned kitchen could leave storage areas unused, while an inadequate wardrobe may lead to additional storage purchases later. Similarly, furniture that looks good but doesn't work well for the household may need replacing.
Therefore, before spending on a major home upgrade, homeowners can ask:
- How frequently will this be used?
- How long is it expected to last?
- Does it solve an existing problem?
- What maintenance will it require?
- What does the warranty cover?
- Will it keep working for the household as its needs change?
- Where can homeowners save during a festive makeover?
Not every element of a home needs the same level of investment. According to Rajasekar, decorative accessories, artwork, accent pieces and other easily replaceable elements can offer greater flexibility when it comes to spending. Unlike a kitchen or built-in wardrobe, these elements can be changed as tastes and requirements evolve. This makes them a place where homeowners can refresh a space without committing a large portion of their renovation budget. For a festive makeover, this could mean making smaller changes to the living room, dining area or bedroom instead of undertaking a complete renovation. New artwork, soft furnishings, accent décor or other decorative additions can change the appearance of a space while leaving the more expensive, functional elements untouched.
Don't let the initial quotation decide your budget
One of the key points in Rajasekar's approach is to look beyond the number mentioned on a quotation. “The lowest price does not necessarily mean the lowest cost,” he explains. A cheaper product may require more frequent repairs, have a shorter useful life or need to be replaced sooner. In such cases, the initial savings may not remain savings over the long term. However, the reverse is also important. Paying more does not automatically guarantee better value. Instead, homeowners should compare the quality, durability, warranty, service and functionality they receive at different price points. This approach can be particularly useful for large home purchases, where the decision may affect the household for several years.
Factor in the hidden costs of a home makeover
A common budgeting mistake is to consider the price of the main product without accounting for everything required to complete the project. For example, a homeowner planning a new kitchen or wardrobe may initially focus on the quoted product price. However, costs may also include fittings, installation, modifications, and other requirements. That is why Rajasekar recommends starting with the total amount available for the makeover and then deciding how to allocate it. Instead of asking, “How much does this wardrobe cost?”, homeowners can consider the bigger question: “How much will this entire upgrade cost me?” This can help avoid tying up most of the budget in one purchase, leaving too little for the remaining work.
Keep some money aside for unexpected expenses
Even a carefully planned home makeover can involve unexpected requirements. Changes to existing spaces, additional fittings, installation-related requirements or other modifications can increase the final expenditure. Rajasekar therefore recommends keeping some flexibility within the overall budget rather than committing every available rupee at the beginning. This approach can be particularly useful during a festive makeover, when homeowners may be tempted to use the entire budget because of attractive offers or the desire to complete several upgrades at once.
How to divide a festive home makeover budget
There is no fixed percentage that every homeowner should allocate to a kitchen, wardrobe, furniture or decor. A more practical approach is to divide purchases into three broad categories:
- Everyday essentials: Kitchens, wardrobes, storage and other frequently used elements deserve careful consideration because they affect everyday functionality.
- Long-term purchases: Assess furniture and other larger investments based on durability, maintenance, warranty, and expected lifespan.
- Easily replaceable decor: Accessories, artwork, and accent pieces offer greater flexibility because you can change them without starting another major project.
This framework can help homeowners decide where a larger share of their budget may make sense while keeping spending on flexible decor more measured.
The festive season can be a time for smarter home spending
A festive home makeover doesn't necessarily have to involve replacing everything already in the home decor. As Kota Rajasekar, CFO, MagickHome, explains, the underlying principle is to understand where the money is actually creating value. Rather than opting solely based on the lowest price or the biggest festive discount, homeowners can consider how often they will use something, how long it is likely to last, what maintenance it requires and whether it genuinely improves the way they use their home. Ultimately, a well-planned festive makeover is less about spending more and more about knowing where the money matters.
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