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WANT TO AVOID BUDGET SURPRISES WHILE HOME BUILDING?

You spend a large part of your life savings Which is why it only seems right that you plan it in advance, as budgeting before construction helps save a lot later.
The largest chunk of your expenditure will be spent on buying land. Buying materials and labour costs are a close second. The standard ratio for materials cost to labour expenses is 65:35.
For a better understanding, here are the approximate costs for the stages of building a 1000 sq. ft. house:

STAGES OF CONSTRUCTION AND PERCENTAGE OF TOTAL COST

3%

Excavation in ordinary soil and concrete foundation

5%

Brickwork/Stonework -up to plinth

25%

Superstructure in brickwork

20%

Roofing including waterproofing

6%

Flooring

15%

Woodwork, i.e. joinery, doors and windows

6%

Internal finishes

3%

External finishes

4%

Water supply

8%

Sanitary Work

5%

Electrification

You don’t need to have the lump sum amount with you before starting construction. Adjust your cash flow according to each stage, so you don’t end up overshooting your budget before the work is complete.