Before you invest in building a house, you might be wondering what’s the best option to build a house without incurring losses and maximize your benefits.
You might seek advice from friends or family members but their advice seems to confuse you more than helping you. You will see differences in their advice as each one of them chose different options in constructing their house because their needs and requirements were different.
But you don’t have to worry as this article will cover all the essential steps that you should take before investing in your house construction to avoid making irreversible mistakes while building your dream home and prudent financial decisions.
There are 7 things you should consider before investing in building a house:
The budget:
Setting a budget is essential before planning to build a house. After fixing a budget, it is important to find a building contractor who can provide you with diverse options of construction plans falling under a certain budget threshold so that you can select what best meets your requirements.
Building contractors offer various building budget plans based on the number of features or benefits they provide, with construction costs typically ranging from Rs.1,200 to Rs.2650 per square foot or more.
Timely service:
A construction team that offers timely delivery without compromising on quality is worth your investment.
However, there is no fixed time duration on when the project could be completed. The time required to complete a construction project depends on various factors which include budget, location, building contractor’s experience, government paperwork and complications of the home design.
To give you a rough figure, it will generally take at least 10 -20 months to finish a residential construction project based on the complexity of the project.
Value Appreciation:
Building a house can be a powerful investment that can significantly boost an individual’s financial well-being.
A house is a residential real estate and its value typically increases over time due to changes in housing markets or property modifications. This is called Value Appreciation. This allows you to sell your house at a higher price point in the future.
In 2023-24, the value appreciation rate for residential real estate in Bangalore reached 13.50%. Based on reports from NoBroker, the average price for a 2BHK property in Bangalore in 2020 was Rs.63,10,757. By 2023, the price had risen to approximately Rs.78,20,000.
Property rates in any city vary based on their location and demand in the housing market.
For example, In Whitefield, Bangalore average rate per square foot is Rs.11,050, in Sarjapur Road, it’s around Rs.10,000, in Electronic City it’s about Rs.6,000. To explore more about property rates, click this link.
Rental income:
Rental properties can prove to be an excellent passive income source that can help you cover your EMI, look for other investing options, and save for future retirement plans.
In metro cities, rental properties are in high demand. When you construct a duplex house in a metro city and rent out a portion, you can generate a steady income stream to help you pay off your debt. Even constructing a small additional unit on a small piece of land beside your duplex can generate sufficient income to cover your EMI or any mortgage payments.
Rental prices vary depending on location. According to the report from Financial Express, average rental rates in metro cities range from Rs.20,000 – Rs.35,000 per month. The premium property rentals are significantly higher than anticipated.
Financial and Tax Benefits:
Investing in building a house can offer several tax benefits.
For instance, in India, you can claim a tax exemption of up to ₹2 lakhs on the interest paid on a home loan, as per government guidelines. You can avail any bank loan to help you facilitate your financials.
Additionally, you can benefit from deductions on mortgage interest, property taxes, and other related expenses, helping you save taxes while enjoying the financial benefits of owning a house.
Beat inflation:
Any kind of real estate you own sets you in the safe zone in beating inflation because real estate investments appreciate faster than inflation.
According to Business Standards, with the inflation rate setting its foot at 5.4 percent in 2023-24, real estate has shown a compound annual growth rate (CAGR) of 13 percent.
Fostering Emotional space:
When you have a house, you are not only providing space for yourself but for your family as well.
You will have peace of mind when you are busy working or commuting outside because you know that your family is protected.
Having a home also helps you to develop amazing memories and nostalgic moments with your loved ones.
Conclusion:
Considering all the factors mentioned above before you invest in building a house will not only help you prevent unexpected losses but also help you maximize your gain.
If you are looking for a professional builder who can bring your dream house to life while staying within your budget, SMS Construction is right for you.
SMS construction provides you with various options in architectural style and design that fits your budget and meets your housing requirements.
Regardless of the budget you choose to build a house, the SMS construction team never compromises on the quality of the work and always adheres to the building standards, providing exceptional delivery reflecting your unique style.
SMS Construction has an exceptional track record of on-time delivery, ensuring your architectural plans are met within the desired time.
We believe in maintaining open and transparent communication with our clients, regularly sharing updates on the construction progress to ensure that our clients stay informed and feel satisfied with our service.
