Pros and cons of buying a plot prior to finalizing a builder
Are you buying a plot before finalizing a builder?
A home is a place where you leave the stress of the world outside and relax to your heart’s content. While striving hard to grab your dream job or work your way to success, a desire and hope to build your own sweet home must have clicked your mind for sure. But, like everything else in life, there are pros and cons while buying a home, especially if you are up for a custom-made house. For a hassle-free experience, make sure you are working with builders of good reputation.
Home buyers usually face this situation where they get confused whether to buy the plot before choosing the builder or vice versa. If you are not able to find a house as per your preference in the desired locality, then consider buying the land first. Then hunt for the builder who can meet your expectations and help you in realizing your dream house come true.
Like major house buying decisions, opting to buy land before building comes with certain pros and cons.
Let us look at various pros and cons while buying a home:
You have the final say
It’s in your hands to select the plot, choose the model, and of course, do the interiors according to your taste and choice. Right from laying the foundation to every inch of the work in progress, you have a say. The work is executed the way you want, under your periodical scrutiny.
Depending upon the construction and land cost, you may benefit a great deal by availing a better loan which covers the entire building expense. There are various nationalized and private banks offering home loans at good interest rates.
Here are the cons:
Fluctuation in material cost
You must have got a fair idea by now that constructing your house is not going to cost you a fixed sum. The estimated budget may vary as per the changing cost of raw materials or labour cost. While for ready-to-move-in house you pay a fixed price agreed upon by the builder, but in this option you can’t have a fixed amount as fluctuation in the raw material market cab affect your budget.
Higher upfront equity
There is a great amount of money involved as you are making a larger investment. You need to arrange more cash up-front. Considering your finances, it can affect the contract. There won’t be a fixed amount to complete the construction.
While tracking every facet of home building, at times you may find yourself at loss. Construction permission from the local government authorities, insurance, property taxes would become a part of the building process.
Suppose your plot is in such a place where during construction some difficulties arise, like a rock that is difficult to break or unforeseen situations encountered in tapping ground water. In such situations, your construction cost shoots up and you also spend extra money to get the basic amenities at hand.
In case you opt for buying a plot and then build your house, it is essential to look for a construction company which is well-versed with the nitty-gritties of property ownershipWorking with builders is not difficult when you have the right company to cater your needs. Make sure that you seek the assistance of a reliable building construction firm, as they have enough experience to make your dream plan get the shape of a real home. Their credibility can be verified from the local government authorities like the land registrars, revenue department, and authorities that give permission to these builders and contractors in India.