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Calculating Your Budget for Home Building in India

Calculating your budget for home building in India- 5 things to remember

Planning a budget and sticking to it is one of the biggest challenges of building a home. Construction is a vast and time-taking process. More often than not, budgets tend to shoot up however hard you try. Even when you are extremely meticulous, unexpected expenses pop up. But what is the right budget for building a home? In fact, is there a budget that is common to all? Well, you can surely make a calculated and educated estimate.

Just like one size doesn’t fit all, one budget isn’t feasible for all. A lot of parameters like personal earnings, desired size of the house, area of the house, choice of interiors, and gadgets play a big role in deciding one’s budget. So then how do you decide what would the total cost be? Here are five things to remember:

1. The devil is in the details

Before you jump into the process, have a blueprint, work schedule and material list of the entire process and the estimated cost of each stage. Mr. Tom Kraeutler, the host of The Money Pit Podcast has aptly quoted, “Having a plan you can commit to is fundamental to keeping your budget on track from day one.” It is indeed the most important step to have a clear understanding of your end result before you take your first step. If you want to avoid unnecessary rise in costs then you must minimise surprises during the process. This means sitting down with your contractor to share your plans, your overall budget, and then split your money into various heads- materials, labour, equipment, fees and other expenses.

1. The devil is in the details

2. Be realistic

Everyone wants to cut down costs as much as they can, but mapping out a budget that is impossible to meet will harm you indefinitely. Be realistic with your estimations and design a budget that is possible to stick to with a few alterations. The same goes for house budgeting. You need to research and find out the costs of things and then calculate a practical amount for yourself. In most Indian cities and towns in India, it is easy to find out construction rate per square feet by speaking to a few contractors- that can be your first rough estimate. Based on your budget, adjust your expectations of brands, quality of materials and labour costs. While decorative elements have a wide range of choices and prices, it is recommended to choose the best quality products that go into the structure of your house. Cement, Steel, Electrical Wiring and piping are some such products you should not compromise with.

3. Work as per the picture in your head

Each house is different from another- the floor area, quality of construction, team of architects, personal choices etc.. How you want your house to look should also help you determine your costing estimates. If you want your house with superior strength and finish, you may have to evaluate costs basis the best cement for construction available near you, which can give the desired results. If it is a lavish bungalow with state-of-the-art furniture and interiors and multiple floors then the costs will run up accordingly. To bring meet the image in your head to life, you need to invest.

4. Be flexible yet firm

If you have an ideal team of architects, contractors, and other professionals, many of the issues about the scope and budget will be under control. They are your team, who will turn your dream home into a concrete reality. They are well-versed with technicalities like the best cement for house construction, best quality construction material, and what is ideal for a stronger home. Better still, you should keep a thorough check at every step and incorporate changes over time. It is important to not get carried away and increase your budget every time, but is also advisable to be open to discussion and communication. Sometimes increasing the budget of a particular part of your construction can be more fruitful in the long run eventually leading to a decrease in maintenance costs later on.

5. Maintain a contingency fund

A contingency fund is like an emergency fund that comes in handy while construction. To reduce your burden with unexpected costs, you should begin by maintaining a contingency fund of at least 10% of your overall costs. This way you can avoid unnecessary financial strains and also be prepared for the extra costs well in advance.

The above-mentioned factors can help you put the blinkers on and work towards achieving the end goal within your estimated budget even after you have opted for the best quality of construction material. As mentioned earlier, no budget is right or wrong, it’s your home and what works best for you is the right budget for you. Sticking by it is the crucial part which not only gives you mental satisfaction but also has minimal financial strains on your pocket.

We hope you find this information useful. If you’d like a second opinion, please do feel free to contact Dalmia Cement Build Advisor, a team of qualified civil engineers available near you, who can help answer any construction related queries, and offer on site supervision services. To book a meeting, just call 1800 2020!


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