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5 Things to Consider Before Constructing Your House in India

Updated on: 14 Dec 2021 // 18 min read // Home Loans
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Building a house of their own is one of the biggest dreams of every person. However, given the fact that it requires a hefty investment, we suggest you consider some crucial aspects before beginning the construction. Not only will they help you in making some informed decisions, but will also ensure that you do not end up making any irreversible mistakes.

Moreover, these aspects will aid you in finding the best possible Home Loan Offer, so that you can build the house of your dreams, without any monetary constraints. So, without further ado let’s take a quick look at the five things you ought to consider before constructing your house!

1. Location

While you will always desire to live in the best of localities, sometimes aspects like unavailability of land or exceedingly high prices can stop you from doing so. In such a case, don’t get disappointed, and look for the next best thing.

However, when you are all set to buy a plot of land, always ensure that it isn’t a part of an agricultural area, else you may be denied the right to carry out any construction on it. Moreover, you must thoroughly check if there are appropriately constructed access routes to the site, so that the loading trucks can approach it with ease.

2. Legalities

It is essential that you carefully examine and verify all the papers of the property, before signing the sale deed. If need be, feel free to seek the assistance of a legal advisor for the same. Even in the deed, double check whether the name and address of the seller, as well as the details of the plot, are mentioned accurately. Any misinformation may lead to unwanted hurdles when you Apply for a Home Loan.

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You should also consider checking the Encumbrance Certificate or EC. It must necessarily be in the seller’s name.

3. Documentation

There are certain documents that you should obtain before purchasing the land. These include:

  • Property Tax Receipt or House Receipts, indicating that the seller is the owner of the area.
  • A clear title stating the land’s use as non-agricultural (NA)

Next, you will require the following papers before starting the actual construction:

  • Improvised drawings
  • Carpet area needed
  • Floor Space Index (FSI)
  • Necessary approvals for construction/extension
  • Sales deeds
  • Sales agreement

4. Valuation of Construction

While the cost of the land will more or less remain fixed, the price of construction will vary as per the materials you use, and your needs and preferences. To have a clear picture of the upcoming expenses, we recommend that you draw a detailed break-up of the cost. You may seek the help of your builder or contractor in this regard. You must consider the cost of the following major aspects, amongst other minor things:

  • Foundation
  • Reinforced Cement Concrete
  • Brickwork
  • Plaster
  • Electrical Work
  • Plumbing
  • Woodwork
  • Kitchen
  • Trolleys
  • Interiors

You must also consider the cost of labour, as it may vary widely from one place to another, and even from one contractor to another. It is imperative that you discuss the rates of various elements in detail beforehand, lest you may end up paying more than required.

5. Home Loan

It is now time for you to consider taking a Home Loan. It is a loan offered by banks, housing finance corporations and other lending institutions, often accompanied by attractive interest rate and flexible repayment tenure.

Such a credit can save you from the hassle of shelling out a large sum of money from your pocket and depleting your savings. If you are wondering about the situations you can take a Home Loan in, here they are:

  • Buying a residential property currently under construction
  • Purchasing a ready-made residential property
  • Buying a plot in a private development
  • Constructing a new property to be used as a house
  • Purchasing a plot with the aim of construction of a house

Now that you are aware of all the elements that require your due diligence before you start the construction of your home, we believe this herculean task won’t seem as cumbersome as before. Moreover, you will now be in a better position to save yourself from falling into any pits and will have a better idea of the cost of your home.

So, what are you waiting for?

Also Read:  10 Important FAQs About Pradhan Mantri Awas Yojana Answered

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