Monday, 7 September 2015

Know the factors that make a house expensive

At a time when building apartments is every developer’s pet project and majority home buyers’ housing preference, you can still find a few lurking in the real estate market looking to buy plots. The latter segment of buyers mostly desire to build a house of their own if not use it for other purposes.

Questions related to construction costs of home are common. One such consumer- Sriram Makhan from Chennai asks, “I am planning to build my house on a plot that I invested in 5 years ago. Can you give me an approximate quote on what my budget should be?”

According to International Construction Cost Report, “Construction costs in India, Indonesia, Malaysia, Thailand and Vietnam are now all less than 35 percent of typical UK levels when costs are compared on the basis of a common currency.” Here’s a quick look at India’s position when compared to the rest of Asia (2014-2015).

Construction Cost: It must be mentioned in the forefront that the cost of building a house depends upon a lot of factors. The size of the housing unit, structures being incorporated, the city where your wish to develop, materials being used, among others are just a few elements that have a strong impact on the costs incurred. We have tried to streamline some factors that will give you an idea on the construction cost as per your building plans.

Tax benefit on under-construction property:

Home layout: Outside limit commands attention in estimating the total construction cost. The shape is easily the determinant factor of the costs. If the shape is complex, then the structure per square foot of floor area will be higher. ‘Outside limit’ takes into account the outermost exterior walls - comprising garage area (if any).

Standard homes are comparatively cheaper than customised and luxury homes. If you desire to build a customized home (which we normally tend to as per our requirement), the cost instantly increases. This happens despite the fact that the materials used in building the room is same as that of any other room. For example, a circular room, exterior and interior finish, doors and windows, kitchen, bathroom, floor finish, etc. are some key aspects to ponder upon if escalating costs is your bane.

The total living area is important. Everything under the main roof - within the main building walls, will be considered in calculating the total living area. However, basement, porch and garage will not be measured instead, their costs will be calculated independently. Usually, a big building is more expensive than a small one, though the cost per sq ft will be lesser.

Balconies are a favorite amongst buyers. However, they come at a price. Similarly, basements, garages and porches command extra expenditure. Though not under living area, as mentioned before, they incur extra costs if brought to existence. Materials used in construction such as bricks, cement, pebble, sand, among others are differently priced in each city. In the same way, labour costs vary within different cities. If you reside in a metropolitan then the material and labor cost will be much higher as compared to that of a tier-II or III city.

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