savemoney Archives - Houseyog https://www.houseyog.com/blog/tag/savemoney/ Beautiful Homes, Designed Your Way Wed, 15 Nov 2023 10:04:44 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.6 https://www.houseyog.com/blog/wp-content/uploads/favicon.png savemoney Archives - Houseyog https://www.houseyog.com/blog/tag/savemoney/ 32 32 How to Save Money to Build a House https://www.houseyog.com/blog/how-to-save-money-to-build-a-house/ Fri, 28 May 2021 11:42:50 +0000 https://www.houseyog.com/blog/?p=217 Building a new house of your dreams may require a lot of planning and preparation. You have to prepare yourself and decide whether you want to build a house instead of buying a house. If you decide to build a house, then you have to figure out the cost of construction. And accordingly, you can… Continue reading How to Save Money to Build a House

The post How to Save Money to Build a House appeared first on Houseyog.

]]>
Building a new house of your dreams may require a lot of planning and preparation. You have to prepare yourself and decide whether you want to build a house instead of buying a house. If you decide to build a house, then you have to figure out the cost of construction. And accordingly, you can start saving money to build the house of your dreams. If you are planning to build your dream home, and you are unsure about how to save money to build a house, then read on. As today, I am sharing everything you need to know about how to save money to build a house.

Constructing a house is a huge financial commitment. Even if you opt for a home construction loan, you still have to save money to build a house. With careful financial planning and saving, you can save enough money to build your dream home. But, first off you have to find out the tentative construction cost, so that you can start saving money accordingly.

Try these simple tricks to save money to build your dream home.

How to save money

Amount of money you need to save

Saving becomes easier when you know how much money you need and by when. First of all, prepare a rough estimate of construction. A professional Architect Now that you know your construction budget, aim to save at least 20-30 per cent of the total construction budget. Because, even if you are planning to avail of a house construction loan, the bank is not going to finance 100 per cent of the construction cost. They want to see your commitment before approving and processing your loan application form. And therefore, you have to save money for the down payment.

How much money you need to cover the initial construction cost may depend on the total home construction cost. But, whatever the total construction cost may be, you should aim to save as much as you can. This will help you ensure you don’t have to borrow a lot of money from the bank. So, look to save anywhere between 20-30 per cent of the total construction cost. However, if you can save more, then that will be even better for you.

Open a savings bank account

Open a savings bank account and consider it as a home-building fund account. You may already have a savings bank account. But still, it’s highly recommended to open a separate bank account and use it to save money for home construction.

This home fund account is going to be used as the main account to save money to build a house. Deposit any surplus money like a bonus, tax refund, commission, and salary raise etc to this account.

Save and invest to get higher returns

Invest the money wisely from this account to get better returns and yields. Consider different investment options like equity and mutual fund investment. They are known to offer better returns than the usual fixed deposit, recurring deposit and saving bank accounts.

If you opt to invest in a mutual fund or other market-linked schemes like equity, then be very careful in choosing the funds and scripts. For the best returns, analyze the past performance of the instrument. Also, check for reviews and comments by experts. Understand the financials of the companies/funds, and then make your best judgment.

However, if you are unsure, it is best to talk to an expert financial planner. A financial planner can help you get a better return out of your investment as per your financial goals.

Cut your expenses

There can be two effective ways to save money for building a house, buying a home or an apartment. Or to meet any of your other present and future financial goals. One is to cut down your present expenses and the other is to increase your earning.

How can you cut present expenses?

Note down all your expenses big or small on a daily basis. Analyze your expenses and you can easily find a few cost heads that can be tweaked and adjusted. Get rid of any cost heads that do not add value and make a huge difference in your life. This will help you bring down your monthly expenses and you will end up saving some extra cash every month. Put this extra cash into your home saving fund and then invest it wisely to get a handsome return.

For instance, if you are going out every weekend for dinner, then you may like to change the frequency of dining out. Instead of dining out every weekend, you may like to go out once every month. Instead of dining out every week, if you eat out just once a month, you can save a substantial amount of money every month.

Similarly, you can get rid of a few of the subscriptions like DTH, and instead watch shows online. Get rid of newspapers and other periodicals and you can read online news. Look for recurring expenses and check out which cost heads can be adjusted to cut your monthly expenses down.

It may appear like a small saving. But, when you seriously want to save money to build a house, every penny you save will help you realize your dream of building a house faster.

Increase your income

As I said, when you want to save money for building a house or to meet any other short or long-term financial goals, you have to save and invest money wisely. Now, if you are able to increase your monthly or quarterly savings even by 10-15 per cent, it will help realize your financial goal much faster.

How do you increase your income?

You have to put in extra effort and build some sort of passive income. Apart from your day-to-day job, find ways to earn a little extra every month. You may consider starting a side hustle because starting a side business is not as difficult in today’s time when you have free tools and apps to take care of your operation. For instance, you can use Canva for designs, Zintego to generate business receipts, Google Calendar for scheduling tasks and so on.

Today we are living in a creative economy where anyone can monetize their skill. So look for a new opportunity where you can monetize your time and skill. Here are a few options you may like to try.

  • Look for a part-time job opportunity
  • Teaching a few hours on online platforms
  • Starting a blog and publishing posts every week
  • Take up some freelance assignments as per your expertise
  • Start a video blog on YouTube to generate extra income

Do whatever you can to increase your income, even if it’s just a few thousand every month. By investing this extra income wisely, you’ll be able to reach your financial goal faster.

Cut the cost of construction

As a future homeowner, you only know the efforts it takes to build a corpus for new home construction. The sweat, efforts and sacrifices you have made should not be wasted and thus you should look for ways to keep the cost of construction under control.

The process of building a house has changed a lot over the years and there is so much that can be added while building a house. From fancy tiles and marbles to ultra-modern home automation systems, there is much to do.

But, you should not get carried away and look for the features that can add real value to your home. Get your priorities right and accordingly plan for the construction and this will help you build your dream home without getting over budget.

You should also consider hiring a professional architect who can help design the house and estimate the budget for construction. Hiring an architect does not cost much and there are many architects who offer flexible rates as per the level of engagement. Having a professional by your side has many advantages and you must consider this option.

Final thoughts on saving money to build a house

Choosing to build a house on your own land is a big financial and emotional commitment. If you have decided to construct a house, you are actually gearing up towards a long, exciting and overwhelming journey. As it involves a lot of money, it requires a foolproof financial plan and savings. From saving money to manage initial construction expenses to arranging housing loans and getting a house plan in place, this journey is going to be super exciting.

However, saving money to cover 20-30 per cent of total home construction cost is not going to be easy, especially when you do not start saving money early on. I have shared a few simple and easy money-saving tricks that’ll help you to save for home construction. If you follow these simple saving tips and hacks, you will be able to manage the funds much more effectively.

What else do you think can help save money to build a new house? Share your money-saving tips and tricks by commenting below.

The post How to Save Money to Build a House appeared first on Houseyog.

]]>
How to Reduce Home Construction Cost and Budget https://www.houseyog.com/blog/how-to-reduce-home-construction-costs-and-budget/ Mon, 22 Mar 2021 05:13:00 +0000 https://www.houseyog.com/blog/?p=163 Per square feet cost for home construction in India with standard quality materials was around Rs. 1000 per sq ft in 2018. But today, the prices have gone up to Rs. 1300 per sq ft in 2021 with the same build quality. Naturally, that’s because of the rising prices of raw materials, labor costs, professional… Continue reading How to Reduce Home Construction Cost and Budget

The post How to Reduce Home Construction Cost and Budget appeared first on Houseyog.

]]>
Per square feet cost for home construction in India with standard quality materials was around Rs. 1000 per sq ft in 2018. But today, the prices have gone up to Rs. 1300 per sq ft in 2021 with the same build quality. Naturally, that’s because of the rising prices of raw materials, labor costs, professional fees, and rental costs of tools and equipment. If you are planning to build your dream home and you are looking for ways to reduce the home construction cost then continue reading. As, today in this post I am sharing a few quick and simple ways that’ll help you to bring the construction costs down to a good extent.

The major home construction cost heads that we’ll be discussing today:

Therefore, if you want to reduce home construction cost then you have to find ways to adjust some of the expenses under some of these cost heads.

So, how do we do that?

That’s what we are going to discuss next.

Simple tips to reduce home construction cost in India

New home construction costs have grown significantly in recent years. Prices of raw materials like brick, cements, sand and steels keeps on changing dues to different factors. Also, labor charges and rentals for equipment and machinery keep rising every year. Needless to say, constructing a new house has already become a costly affair.

Home construction costs primarily depend on the size of the house you want to build. Secondly, the kind of materials you use and the quality of finish you want. And therefore, you should plan everything minutely and may be make a home construction checklist to manage and track everything correctly.

But how do we reduce the new home construction costs and budget? Well, that’s what I am going to help you with in this post.

Save on cost of land

Prices of residential lands have gone up substantially in recent times and therefore it’s important to choose the right plot. If you buy the right plot at the right price, you can save a good amount of money on construction.

Here are a few ways to save money on home construction by choosing a good land or plot.

Land preparation cost

Overall cost of construction will go up in case the land require some preparation like filling and leveling. If you end up buying low lying land then you have to prepare and level the land. Land filling cost can go in hundreds of thousands of rupees, especially when you have a substantially large parcel of land of over 2000 sq ft area.

However, if you have not purchased a land yet, then you should look for a parcel of land that does not require leveling or filling. Ideal plot should not be too low or too high from the road levels. Otherwise, you have to spend extra money in leveling the land and that may increase your home construction cost and budget.

Floor area ratio

This is another important thing to note when buying a plot. Different municipalities and development authorities have different regulations for floor area ratio.  In simple terms, floor area ratio is the maximum permissible floor area.

FAR calculation is different for different places or municipal areas and it keeps on changing as well. Width of the approach road to access your plot plays an important role in FAR calculation. Hence, you should always buy plots that have wider access roads, even though it will be a little costlier, you can build multiple floors on the same plot size.

For instance if you buy a plot of 40×30 =1200 sq ft, and the FAR is 2 then you’ll get the buildup area of approx 2400 sq ft. However, with a FAR of 1.5 you only get 1800 sq ft of built up area. And hence, it is important to look for areas or plots where you get a higher FAR.

Saving on architectural services charges

And therefore you must consider hiring an Architect. We often consider architect fees and charges as an additional expense. But trust me, it’s totally worth it. An experienced and professional architect have a crucial role in helping you design and build your house cost-effectively.

However, there are a few things to note when working with an architect to get a house plan designed.

  • It’s always better to work with an architect or an architectural firm with real experience as they can design cost-effective house plans and elevation designs.
  • Don’t just choose an architect coming your way. Rather check architectural service prices from a few local architects to know of the standard architectural service charges.
  • Even consider online architectural services as they tend to offer comparatively better price and hassle-free house designing services.
  • If you have an even dimension plot e.g. rectangular or square shaped land, then check if you can get a ready to use house plan and elevation design.
  • Cost of construction is calculated based on total built up area, so be mindful of the total buildup area in your house plan.
  • A ready to use house plans can be customized as per your requirement. It also costs a lot less than a custom made house plan.
  • It costs less when you want to build a rectangular and square shaped building, than an L shape or an H shaped or any such odd shaped structure.
  • Always insist on getting the full architectural drawing that include, master plan, floor plan of the building for each floor, elevation, structural and working drawing etc.
  • Having a full set of architectural drawings and perspective views in 3D can help avoid construction error and save construction costs.

Saving in documentation charges

Before starting the construction work for your home, there are certain legal formalities that have to be done. You need to get the house plan approved prior to starting construction. If you are working with an architect, then the chance of getting the house plan approved is higher.

Since you are already going through the process of plan approval, it’s better to get the full building plan approved. That means, if you plan to build single floor now, and second floor later, then it’s always recommended to get both the plans approved now. Otherwise, you may have to go through the same process to get the approval for the second floor.

Moreover, instead of going through a third party, you can approach the authority on your to get your house plan approved and save more.

Tips to save costs on building materials

A good portion of construction budget will go towards buying building materials. Needless to say, you have to choose the right kind of materials available at cheaper rates.

Here’re a few of the ways to save money on building materials and bring down the home construction cost and budget:

  • Cement, sand, steel and bricks are the main building blocks for your new home. Majority of your home construction budget will be spent on these materials and therefore it is important to choose these materials wisely.
  • By choosing the right quality and grade of cement, brick, steel etc, you can save as much as up to 20-30% of the cost.
  • When choosing the cement, instead of looking for the national brand, look for similar grade materials available from the regional brands, which will cost a little lower than the national brands.
  • Use the right grade of materials as per the advice of your architect. For instance, there are two grades of cements usually available in India i.e. OPC and PPC. OPC cement is a little costlier than the PPC cement and both have different applications.
  • You can use OPC cements for structural work like pillars, beams, roof etc. However, for brick work like plastering, tiling etc, PPC cement may be the best choice.
  • Similarly, when it comes to bricks, you have multiple choices like ‘A’ grade red bricks and ash bricks and both these bricks are equally good. But, you got to choose a brick that is available cheaply and for less.
  • If you are after a multi storied building, you may even consider concrete blocks, for they are lighter in weight. And therefore, you can save on structural elements and as it keeps the building cooler, you can save on cooling expenses moving forward.
  • Another major cost head is for wood work i.e. door frames and doors. Wooden door frames and doors for all your rooms can become costlier.
  • But, you can choose to install laminated flush doors for all rooms except the main door. Similarly in the washrooms, you can use PVC doors which are available in fancy designs; they are more durable, and available at much cheaper rates.
  • Roof railing can be done with a little gap (the jail pattern) for it offers ventilation as well as help reduce the construction costs.
  • For electric work, always use the best quality wire and accessories, but that does not mean you have to use the costliest products and accessories available. Basically, you should look at the quality and grade of the materials, not the fascinating brands.
  • While choosing lights and light fittings, you should look for regional brands with adequate warranty and if you choose right, you can save up to 50% of the total lighting and light fitting expenses.

Saving on labour and contractor expenses

Different types of contractors, subcontractors and labor are required to build a new house. And a good portion of your home construction cost will go towards labor and contractor payments. However, if you hire the right kind of contractors and labour, you may end up saving some extra money and that will help you reduce your home construction costs and budget to a good extent.

Here are a few of the best ways to save money on labour and contractor expenses.

There are many benefits of working with a team of experienced contractors and labour. They tend to make no mistakes, work efficiently and can help complete the construction on time and that in turn help you save money indirectly.

However, when you work with inexperienced contractors and labour, they tend to make more mistakes, which may be expensive in terms of build-demolish and rebuild. And sometimes, they will end up with irreversible construction mistakes and that may turn out to be expensive, even though they may charge a little less than the experienced contractors.

Another important way to keep the labor charges low is to go with simple elevation design. Simple elevation can be finished quickly. However, it may take extra manpower to finish a complicated building elevation design and thus, it will cost more.

Saving on finishing costs

Once the basic construction like structure, brick work and plastering is done, it’s to give finishing touch to the house. And this is an area, where you need to be very mindful while choosing the materials like paints, lighting, floor tiles etc.

Here are a few tips to save on finishing expenses and bring the overall home construction costs down.

  • For flooring, tiles and marbles are available in different ranges. But if you want to keep the costs low, you can use mosaic flooring instead of tiles as this will help reduce home construction costs significantly.
  • While choosing tiles and other flooring materials, you will get several options in different price ranges. Review and evaluate all the options available and then choose the tiles carefully to keep the overall construction costs low.
  • False ceiling could cost you well, especially in a duplex building. But, you can get rid of the false ceiling to keep the construction costs low.
  • Alternatively, you can even consider creating a tray for lighting around the walls as it serves the purpose and costs under 10-15% than false ceiling cost for the entire ceiling area in a room.
  • For plumbing and fixtures, you will get tons of options in different price ranges. The national brands are generally costlier for the range of products they offer.
  • But, as I said, there are tons of options and as far as durability is concerned, they are mostly durable. It’s the brand name and the looks and finishes that costs more. So, if you choose the sanitary and plumbing materials wisely, you can save over 30-40% of the total expense towards bath fittings.
  • You can also save substantially in wall painting expenses by choosing reasonable wall paints like semi-acrylic wall pains, instead of getting fascinated by the high end paints.
  • Using a lot of tiles on external walls to get luxurious elevation can shoot up your construction budget, so you can use wall paints instead to reduce home construction costs.

Other tips to save money on home construction

Apart from what we have already discussed, here are a few other ways to save money when constructing a new house in India.

  • Make a comprehensive plan and budget, and stick to it.
  • Never start construction unless you have figured everything well, from permission to house floor plans to budget to the kind of materials you will be using in construction.
  • It’s natural to get impressed with those shiny tiles, but don’t get carried away and fascinated or you will end up spending more.
  • Check prices from multiple builders and contractors to ensure you are not being overcharged and that you are paying the fees as per market rates.
  • When possible, buy materials from bigger suppliers and bargain for a better deal. When your order size is bigger, you can easily negotiate better rates from the building material suppliers.
  • Working randomly may result in misuse of your funds and if in case you run short of cash then you may have to pause or halt the construction.
  • Always work with experienced hands, their fees may be a little more, but there are long term benefits of working with people who know what they are doing.

Conclusion

Building a house is considered to be a costly affair. And due to lack of proper planning and budgeting, the total cost of constructing a new house can easily go up by 10-25%. Needless to say, if you are planning to construct a new house, you go to be very careful with everything.

I have already shared the major home construction cost heads, and how you can cut these costs to reduce the overall cost to construct a new house.

Hope these cost cutting tricks and ideas will come handy for you.

What else do you think once can do to reduce the home construction costs in India in 2021? Share your tricks and hacks by commenting below.

Happy home constructing!

The post How to Reduce Home Construction Cost and Budget appeared first on Houseyog.

]]>