We all dream of having the perfect home. Among the first steps for constructing your dream home is estimating the budget. Building a house may be the most important thing that many of us will do in our lifetime. But we have other obligations and responsibilities in life as well. Keeping our spending within the limits of the estimated budget will allow us to build in peace without any hassles or incurring any debts.
Here is how estimating a budget will help you:
- Understand Your Limits
A budget gives you a clear picture of how much expenditure can be done. Based on this, you can start planning on the kind of house that you can build. Without calculating approximate construction costs, material costs, labour costs and finishing or interior costs, you will be like a ship heading for an unknown destination!
- Get Professional Help
A professional architect will help you design a house to suit your needs and include features that you would like in your dream home. Based on your budget, you could hire an architect whose services would be within your financial reach. The architect will also give you an approximate cost estimation of the project.
- Select Design and Construction Materials
Having a budget in place, helps you arrive at a design that will suit your requirements as well as be within your financial reach. This also makes it easier to select materials for construction like the type of bricks, cement and steel being used.
- Know If You Need Additional Funds
Estimating a budget helps you know if you have enough funds for constructing your home, and whether you need to apply for a home loan. For approaching any financial company for a loan, the budget estimation document is also to be submitted for approval of the loan.
- Type of Project
Based on your budget, you can decide whether you would like to go for a turnkey project or labour contract. Turnkey project is the one in which the contractor is responsible for providing the materials as well as labour. In a labour contract, you would source the construction materials as per the requirement and pay only the labour charges to the contractor.
- Shield Against Price Fluctuations
While you estimate the budget, if you take into account the price fluctuations that might occur during construction, there is no need to fear that you will run out of funds in the middle of building your dream home.
- Avoid Overspending
A budget most importantly helps you avoid overspending. Knowing the amount that you should spend, to be within the set limits, ensures that you do not overspend on any one particular aspect and have to compromise on other parts of the construction, like having to use poor quality material or furnishing items. Without prior planning or estimation, you could well end up spending more than what you can afford in the initial phases and face difficulties completing the project.
- Plan for additional features
Once you have a budget in place, it is easy to incorporate additional features to the house. For example, if your budget allows, you can choose to build an eco-friendly house with better insulation materials, solar panels, rainwater harvesting facility etc.
- Avoid shortage of funds
For most of us, constructing a house could be a first time affair. Having a budget helps us control costs and avoid a situation where the construction might have to be stopped or delayed due to shortage of funds.
Keeping in mind all of the above aspects, it would be wise to put in some planning before venturing out to build your dream home. With the ultimate objective being to build a shelter that will give you peace, happiness and lots of good memories, why not let the process of building be a peaceful one as well!