Do you have a plot still live in a rented house? This amuses me when lots of people say that do they really need to a house of their own or they don't have money to do construction. To me these are lame excuses of not taking an initiative and shifting to your own house. Some people also have the logic that the value of construction deteriorates. I tend to disagree with it too. In the countries where inflation rate is high, the cost of construction goes up so does the construction price and even the older houses are of higher value in the short term or even long term future.
In the past 30-35 years the cost of construction has increased by 30 times which means a house costing 100,000 bucks in late 70s or early 80s will cost you 3,000,000-3,500,000 bucks.
There are lots of ways of doing it (I mean there are lots of ways of constructing a house). You might have heard NIKE saying “Just do it” and I will emphasize the same. Over here we will discuss the ways of how to do it. I will share with you how you could have your own house and get rid of rental expenses which you have been paying every month for last so many years.
Normally, you pay 1% of the cost of construction every month in rent so if you live in your own house for 100 months or 8 years and 4 months, your house is FREE.
This article can be really beneficial for those who have their own plot and don’t know how to construct it. If you don’t have a plot even and want your own home, this eill benefit you.
Following are some of the ways to get rid of rented house and start living in your own:
SELL EXISTING PLOT, BUY A SMALLER ONE AND USE ADDITIONAL FUNDS IN CONSTRUCTING A HOUSE
If you have a plot that is larger than your requirement of living space, you can sell that plot or lot and buy a smaller one. Normally it gives you additional funds to start construction and even in some cases you get sufficient funds to complete grey structure of the house. Lot of people don’t do it because they don’t get double the price for their plot as compared to a plot which is half their size. For example if a 250 sq yards plot is for $ 80,000, 500 sq yards plot will not be for $160,000. This has been the same in the past and will remain to be the same in future so just sell your plot and buy a smaller plot and use the access money in construction. Don’t go in lots of calculations. The objective is not making calculations rather the objective is to have your own house.
SELL THE PLOT AND BUY ONE OF THE SAME SIZE IN OUTSKIRTS
If you cannot compromise on the size of the plot, you will have to compromise on the location. So, you can buy the same size plot in the outskirts at a much lesser price giving you the initial throttle to start construction. There is nothing wrong with it. Have you ever thought that our parents bought their plot or lot in the outskirts which might now be center of the city.
COMPROMISE A BIT
I have been living with the thinking that the rented house that I am living in fits my requirements and anything smaller will make me upset and make my life miserable. Give yourself sometime and think that can you live in a smaller plot area. I am sure you will be able to find out the ways. We all are intelligent enough to come up with the solutions and you can cross out lots of spaces that are extra.
I will also share another option with you where you can have similar living area on a smaller plot size. You can find really good house plans and one of the plan where you have 4 bedrooms with attached bathrooms, parking space for 2 cars and maid’s room in just 125 sq yards plot.
WORK ON FINANCING OPTIONS
Once you have a plot, you are a rich person or at least bank assumes you to be one so they are willing to give you loan. The probability of getting loan will be much higher as compared to those who don’t have a plot. Make sure that your installment amount per month doesn’t exceed 1.5 times of the rent you are paying. Believe me, you will be lot happier in next 5-6 years as rentals would have jumped tremendously and your installment would remain the same.
PLAN FOR FUTURE LIVING TOO BUT CONSTRUCT FOR PRESENT LIVING
I have heard that from quite a number of people that their kids are going to grow older in next 4-5 years so why not construct a room for them. This is where you start constructing barrier rather than constructing a house. Do plan and have a layout plan developed according to it but do construct house that is required by you right now.
REDUCE YOUR COSTS
The family needs to sit together. By family I mean at least husband and wife should sit together and decide that where they can reduce the monthly costs and what their monthly savings are? A house normally takes one to one and a half year to plan and construct so you should know how much you will save during this time. This will help you in getting motivated that what you can save.
CONSIDER OPTION OF BUYING A LARGER PLOT AND SPLITTING IT INTO TWO
If any of your other friend or family member is interested in buying a plot too and both of you agree on living in the same vicinity, please do consider option of buying a larger plot and splitting it into two. This way you will get saving of approximately 20% in price of plot.
PURCHASING AN ODD LOT
If you are considering it for investment purposes, we suggest that you don’t go for odd plot or a lot as the buyers are less for those but if you are planning to buy a plot or a lot for construction of house we recommend that you buy an odd lot. Beautiful designs can be made for the same plot where they will not at all look odd once they are constructed. The value of plot automatically increases if it is pragmatically constructed.
DON’T COMPROMISE ON QUALITY BUT DON’T OVER SPEND
We will not recommend you to compromise on quality in order to cut down the costs but don’t go to expensive stores of your town. They present the things in a better way and charge premium for the same stuff. If your budget doesn’t allow compromise on the finishing material to reduce your costs. Don’t compromise on quality of grey structure.
BUY SALVAGED MATERIAL FROM THE DEMOLITION SITES
You can buy material used construction material and it normally costs you half the price of new material. There is no much difference and if you want don’t use it in finishing but use it in grey structure
LOOK AT YOUR BUDGET ONCE MORE
Even if you are still not able to meet your budget reconsider your plan of construction and further shrink the list of items. Only do the construction that you cannot live without.
AVOID CHANGE ORDERS
Plan well first so that you don’t have to make changes in the construction once things are constructed. Breakage costs and reconstruction costs can be increase the cost of construction by 10% or even higher.
Now go ahead start constructing a house