Q&A – How Much Do I Need to Build a House?

Contrary to popular belief, building a new house does not necessarily have to cost more than purchasing an existing house. Nonetheless, the price depends on several elements such as the location, ownership of existing land and the size of the property.

In order to get a better understanding of the cost of building a house, Lanka Property Web discusses a few significant points that you may need clarifications on.

How do I find out how much I need?

The key to understanding how much you need begins with the budget. It is the first element to be prepared during the process of constructing your new house. The amount you are willing to spend allows you to understand the type of house you would be able to construct. For example, under the assumption that you own a land, a studio unit made using shipping containers would cost you approximately Rs. 1,200,000 or more, while a moderately large four-bedroom house would cost around Rs. 9 million.

Each type of property has its own advantages and drawbacks. Your choice of floor space, number of rooms, number of storeys, interior design, furnishing and other amenities change the cost of the house you plan to build. It is absolutely crucial for you to understand your precise needs along with your budget to determine how much you need to build your house.

Do I need to purchase land?

Most developers construct the home you desire on the land you already own. This generally reduces the total cost of constructing your home. The price indicated by the developer would be exclusive of the land price, since land prices change based on location. Price per perch in the suburbs of the Colombo area is cheaper in comparison to the central area such as Colombo 03 to Colombo 7. However, if your budget permits, you can purchase a land from certain developers along with the construction of the house.

How about pre-selling properties?

Building a new home not only needs money, but also time. If you plan to move in your new home sooner, it is recommended that you go for pre-selling homes. Pre-selling homes are generally condominiums designed to be built in the near future. Developers often advertise the proposed property beforehand in order to receive investments. This would be highly advantageous if you cannot be flexible with your budget.

A pre-sale condominium may not be cheap but developers often provide discounts for initial full payments and also allow the buyer to customize the interior design at their will. Thus, it would allow you to sell the completed property much faster, if your intention is to make money from real estate.

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