Purchasing your dream home is an expensive and complicated process and the same applies to building a house from the ground up. Purchasing a plot and having your house constructed from scratch allows you the freedom to have it customized as per your individual requirements and preferences. However, having it self-constructed is not only time-consuming but sometimes more expensive too. You have to cover all the expenses starting from purchasing the plot and building materials to hiring builders and getting the required permits.
To cover the expenses related to your home construction, you can apply for a home loan for plot purchase and self-construction. These are the expenses you may cover using this loan.
1. Plot Purchase
When you purchasing a readymade home, the land is already built included in its price. However, when you decide to self-construct your house, you have to purchase the plot first and then plan your house to be built on it. The cost of the plot may vary depending on its location and size. If you are looking for a plot in an urban area or a master-planned community, you may have to pay a little more than in rural areas. You can fund your plot purchase with your sanctioned amount of home loan.
2. Custom Home Design
Self-constructing your house allows you to create your dream home exactly the way you want it to be. However, the more elaborate your dream, the more you will have to spend. Standard plans are cost-effective, but if you have some complex or non-standard demands, be ready to pay a little more amount for the design and construction costs. If you have a limited amount, keep things simple to fit the customization within your budget.
Ask your builder if they have some pre-existing plans. Choose one of them to keep your home construction cost within your sanctioned loan amount.
3. Required Permits
Your construction plan needs to be submitted to the local building & permit office of your city. If the authorities find any issues with it, the builder will have to revise it and resend it to the office. The cost of plan revisions has to be borne at your expense. Once your plan is approved, the builder will still need to acquire a permit to start the construction. The cost for these permits may vary from one state to the other. You may put some amount from your home loan aside to pay for these permits.
4. Building Materials
You may give a contract to your builder who will take a lump sum amount from you, which will include the cost for building materials. However, if you want to save some money and ensure quality, building materials on your own would be the better route. So, you have to keep some loan amount aside to purchase the building materials as well.
The more high-end materials and upgrades you want, the more you will have to pay. If you expect your dream house to be equipped with materials like hardwood flooring, marble countertops, vaulted ceilings, crown molding, accent walls, and screened-in patios, all these may add to the cost, which you may fund with your home loan amount.
5. Final Touches
After constructing the basic structure of your house, you would need to give some final touches to the exteriors and interiors. These include doors and windows, flooring, wall paint, electric switches, landscaping, and others. Builders use standard materials to give final touches to the houses they build. However, if you have any unique requirements or preferences, notify your builder about them beforehand. Accordingly, you may have to pay a little more from your loan amount.
6. Furniture and Appliances Costs
Once your house is constructed, you have to make it ready to move in with the furniture and appliances you require. Basic furniture includes beds, sofa sets, tables, cupboards, dressers, and others. Required appliances include air conditioners, televisions, dishwasher, refrigerator, microwave oven, gas hob, and others. Although their cost is not too much, the total cost may be in lakhs when you buy them all together. So, you may assign some part of your home loan for these purchases as well.
Looking for a home loan for plot purchase and self-construction? Clix Capital can be the ideal partner. We offer home loans of up to ₹2 Crore to salaried employees and self-employed professionals.
You can also reach out to us at firstname.lastname@example.org or call us at 1800 200 9898