Buy, hold and build your own home

Constructing a house, rather than buying an apartment, is a dream for many. A house with a garden can be within your reach if you invest in a plot ahead of time.

Plotting the dream

Once you own a plot, building a home is not very expensive. Construction costs vary depending upon the location and the material used, but it averages 1,500 to 2,500 per sq ft for mid-range houses. So you can construct a 1,000 sq ft home with a car park for under 30 lakh.

You must, however, invest in a plot early in your career by taking a land loan. And, based on how infrastructure develops in the area, you can decide on a suitable time to build.

It typically takes two years for you to build a house, including the time spent in getting the required approvals for building and the actual construction.

During the intervening years, you can fence the plot and plant trees, which will help secure your land. By building a home, rather than selling off the plot to buy a flat, you can retain the land value over a long term.

Buying to build

There may be a few differences between buying the land as an investment and buying with an intention of building a home. For one, if you plan to construct in a few years, a prudent choice may be to buy a plot where the social infrastructure, such as hospitals and shopping, are well developed.

This may be more expensive than buying in a far away place, but it may be safer and make every day living easier.

Also, plots close to the main road appreciate more compared to those that are a little far away. However, this may not be the best choice if you prefer peace and quiet. Instead, it may be better to buy in a street that is slightly away from the main road.

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Buy, hold and build your own home