How to estimate the costs of building a new house

Almost everyone has this ultimate goal of buying or building a dream home, a place where they can spend their life and grow old, happy and content. Some want it minimalist with sober and direct designs, classic equipment and muted colors. On the other hand, some people aspire to have a quirky quirky house with bright colors and the latest amenities.

However, when buying or building a house, there are tons of puzzles, from choosing the appropriate land, from the company to the architecture, etc. Even if you buy a home that’s already built, there are several changes that your partner, kids, or parents would like. And, if you build the whole house from scratch, there will be a lot of back and forth in terms of the design, color coordination, and various other things.

There are a lot of things that one should take into consideration before starting to build a house. However, the first thing is to strictly clarify the upper and lower limit of your budget allocation.

If you are also planning to build your house for residential or rental purposes, here is an overview of how much you should allocate on average:

How Much Should You Invest in Building Your Home?

In order to limit the money that you are willing to spend on building a house, it is essential to first clarify the exact purpose of your house. For example, if the house is built for rental purposes, it will be designed differently from the house built for self-occupancy or self-use.

For residential or personal use: When building a house for personal use, the standard procedure is to opt for a duplex or a R + 1 (Ground floor + one floor). On average, if a person builds a 30×50 duplex villa (30 feet wide by 50 feet long), it will take around Rs 40 lakh to Rs 50 lakh to build a well-built house.

For commercial or rental purposes: When it comes to building homes for rental or monetary purposes, most people expect the construction amount invested to be paid back in the form of rent. Considering this, choosing to build an R + 3 (Ground floor + three floors) instead of a ground floor or a R + 1 is more advantageous. This is because G + 3 houses are cheaper and the larger the house, the higher the return on investment.

In general, a G + 3 house built on a 1200 square foot plot would require an estimated amount of Rs 57 lakh.

Conclusion

It is relevant to mention here that the budget for building a house can vary in case of various needs. Besides the monetary attributes, it is crucial to understand that one can only transform a house into a house with emotional aspects and positive energy. So when building or building your home, remember to put your heart and soul into it, not just money. In this case, it can be crucial to partner with a construction company that matches your vision. Such a business will understand your needs and budget and build your forever home within your budget. By doing this, you can see your dream take shape and come to life before your very eyes.

Author, Amit Mishra, is CBO at The Better Co. Opinions expressed are personal

First publication: STI


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