Skip to main content

How to do a cost estimate for House Construction?

 

How to get a cost estimate for Home construction?

 

Constructing your house is never easy...and always expensive. It pays to know the costs involved well in advance so that you can plan your budget and prioritize your needs.

While your builder or engineer can always create a cost estimate for you based on your design plan, it is always prudent to have a rough estimate even before you get the design plan ready. Having done your calculations right at the start enables you to put forth right expectations in front of your architect - so that he can create a realistic design plan that fits your pocket.

Now, if you are wondering how to make a 'guesstimate' of the expenses involved in building your dream home when you have no experience in construction, here a few tips to get you started:

Do your own rough work

Take a look at the newly constructed homes and find out the construction cost incurred by the owners. Divide this construction cost by the total sq. ft. area of the constructed property to get rate per sq. foot. For example, if the construction cost is around Rs. 5,00,000 and the home is 5,000 square feet, then the cost per square foot is Rs 100. It would be a good idea to get the rate per sq. foot for multiple homes. Then, multiply this rate with your plot area and you get a rough cost estimate! Add to this an additional 10% to cover unexpected cost overruns.

Also, remember that the cost of construction increases around 3% to 6% every year. So when comparing prices consider homes constructed within the last six months.

Get in touch with a few builders in your locality

Talk to a few builders who have undertaken residential construction assignments in the recent past and get a ballpark idea of how they charge for labor and materials. It would be a good idea to see the construction (if ready) to know what does the cost really include. Some builders use labor contract and materials contract for the process of construction, which makes it easier to estimate the cost of construction.

Labour Contract: Under labor contract, workmen or employees are hired, supervised, and remunerated by or through the contractor. The contractor provides the cost estimate of the labor cost depending on the total time taken to build a house or establishment. In India, the contract labor is regulated by the Contract Labor (Regulation and Abolition) Act, 1970.

Material Contract : Under material contract, labor is charged at specified fixed hourly rates and material is charged at actual cost. The customer agrees to pay the contractor for all the material used at every stage of the construction.

Budget in the following basics while 'guesstimating'

  • Interiors (like woodwork, fittings, etc.) cost more than the brick-and-mortar structure.
  • The most expensive areas in a home are usually the kitchen and the bathrooms.
  • A small home has a higher cost per sq. foot that a larger home, as in larger home cost is spread over larger sq. ft. area. Also, it is cost-effective to build a two-storey construction that a single storey, as a two-storey house has a smaller roof and foundation.
  • It's cheaper to build rectangular or box shape homes than the ones having more angles and corners.
  • There would be additional costs involved like architect's fee, fee for various approval and permissions from the concerned authorities, site preparation cost, etc.
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...
Read more

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...
Read more

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Read more

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Read more

Perpetual SIP - Its Advantages

Retail investors have taken a fancy to investing in mutual funds through systematic investment plans (SIPs). As per industry estimates, Rs 4,000 crore flows into SIPs every month. One way to take advantage of SIPs in a true long-term manner is to opt for a perpetual SIP 1. What is a perpetual SIP? In an SIP , you make periodic investments in a mutual fund scheme of your choice generally every month for a pre defined tenure. While signing up an SIP mandate , you have the option to leave the end-date column blank. If the column is blank, it means the investor has opted for a perpetual SIP . Most fund houses assume this SIP will continue till December 2099 unless you give a written communication to stop it. However, some fund houses require you to tick the `perpetual option'. 2. What are the advantages of perpetual SIPs? Registering an SIP involves a lot of paperwork and it takes time. It is observed that many investors skip their SIP instalments when they go for short-tenure option...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now