Financial planning for house construction

How much a house will cost?Do I have the money to construct a house? These are questions which come to the mind of any person thinking of building a house

About ten years back if you had with you about Rs.6 lakhs,you could have constructed a 2000 sft house with not less than three bed rooms attached with all the usual common features like Living,dining,sit out,car porch etc.But in 2010 after about ten years you need at least Rs.30 lakhs to complete the same house.I think you will now get a feel of how much increase take place in construction cost in Kerala.

About ten years back,river sand was available freely at price which you cannot even imagine these days.Foundation of building was even filled with river sand ,those days.Now even if you are willing to pay anything ,river sand is almost impossible to get.You have to use crusher sand which nobody was even willing to use about 5 years back.One mason used to be paid Rs.100/- per day about ten years back.Today he will demand nothing less than Rs.500/-..Even then you may not get a mason.So if you plan to construct your house after five years,even with Rs.60 lakhs,you will not be able to construct 2000 sft house.

Look at land prices.About ten years back you could buy one cent of land in Kaloor at Cochin for about Rs.50,000/- Now even if you are willing to pay Rs.15 lakhs per cent you may not get the land.After five years from now unless you are a very rich person you cannot buy land in Cochin and build a house.You will have to think in terms of buying a flat only after five years.

So everyday you delay for buying land or starting construction of house is going to literally push away those dreams forever from you.So the most important golden rule is-Buy that land and start construction immediately with whatever money you have and whatever money you can get from banks as house loan.If you delay or keep the decision pending,you will never be able to construct house.I tell my clients usually to start construction even if you have money for foundation only.At least that part will be over.If you do not have money to buy land,banks are willing to give loan for buying land also.Grab opportunity in front of you today.DO NOT WAIT FOR TOMORROW.