If you wish to achieve your goals in life, a lot hinges on the monetary means at your disposal. Undoubtedly, money is a major benchmark for power. Throughout school and college we are expected to focus on a career that is lucrative in the long run. Money once earned is undoubtedly spent on various big and small things. Conversely, though, is there anyone to guide or train us on how to spend money wisely? For many of us, it's a big no. It is a sad thing that most young people who gain employment after school and college are expected to know how to make it all work. However, there is no one to offer them tips on how to manage their rent, bills, groceries and other financial expenses, which often results in complications. The only solution to organize and monitor your finances which can help you realize your pre-determined goals is the budget. It gives you an estimate of your money inflow and outflow and gives you insights on streamlining your expenditure. Nowhere is the need for budgeting felt more direly than in the event of building your own house. House budget estimation can be particularly time-consuming as there are many factors that affect the cost. Therefore, a ballpark figure on the cost you will have to incur on your dream house can help you plan efficiently. For more on the factors that affect your estimation of house budget, read on.
Home Budget Planning
Acquiring And Preparing The Land
Land is a pre-requisite for building a house and so the estimate usually starts with the cost of acquiring the piece of land on which you intend to erect your house. Even preparing the land for construction can have a big impact on the budget. You may have to clear a lot of dirt to do proper grading, clear the land of trees, blast through rocks or construct access roads to make the site ready for construction. All of this can have a huge bearing on your finances.
Consider The Size Of the House
The expenditure on your house increases proportionately with the size of the house you wish to construct. The bigger the house, the bigger should be your house budget evaluation. You can approach experienced contractors who can give you a round figure of the construction cost based on the size. Usually the cost of building a house post considering the size is done by taking the average cost of construction and multiplying it by your intended square footage.
Consider The Style And Shape Of The House
Another important factor influencing your house budget is the style of the house. A one storey-house is bound to be cheaper than a two-storey house. This is because the foundation of a duplex needs to be much stronger and deeper making it cost more. Even the design and shape of the house can affect the budget. One with architectural elements such as more angles and corners will be expensive as it involves greater expenditure on the requisite materials and labor to build it. On the other hand, a house that is simple and box-shaped will relatively cost less.
Estimating The Cost Of Building Materials
Only with the building materials at hand can you actually get cracking with constructing the house. The right quality and quantity of building materials play a major role in making a house a livable home. They can be different in different houses as it depends on the type of material chosen to complete the house design. While assessing the cost of building materials, you may realize that they represent a huge chunk of your expenditure.
Cost Of Plans And Permits
While planning your home budget, do not overlook the average cost incurred on acquiring building plans and permits. This is an important part of your budget estimation if you have hired an architect to custom design your house plan.
Market Condition And Cost Of Labor
The cost of building a home usually appreciates around 3-6 percent each year. If there is a lapse of several years before you go ahead with the construction plan, you need to include the inflation factor in your cost estimate. You also need to factor in the expenditure of masons, electricians and plumbers who render their skilled services.