Thursday, November 4, 2010

My Home

From MyHome

I kept on postponing this writeup as it would be very lengthy one but now finally decided to pen it down. A old adage goes on to mention "Building a Home" and "Getting a marriage done" are the toughest jobs to accomplish.This might not be entirely true in current scenario ,where you can get everything done by outsourcing.But still these two items commends a lot of planning & management.The main reasons could be that these are jobs you execute very rarely and also it has high degree of dependence on external factors.
All this started a during late 2007 when my parents wanted me a build/buy a house.Their main aim was to suck out the liquidity from my current accounts so that i would have less to spend ( same reason why RBI increases CRR :) ). Moreover there is social stigma attached to home ownership.I decided to stick to my native town.It took almost six months ,around early 2008 , to zero down on the land to buy.
Land prices were on high side of my budget . One ground ( 2400 sqft) for quoting for 16 Lakhs [ Rs 666 per sq ft] in prime locations.Finally i chose a plot of 1500 sq for 5.6 Lakhs [ Rs 373 per sq ft]. 3 months back when i checked, it was quoting at 4.5 Lakhs. At that time i was not that interested as we have to cross a old unplanned settlement to reach that spot from the center of the town. But later i could see that for the price point i was comfortable , i could get only 10 KM from the center of the town.But this spot is barely 500 mts from the center.

View Prem's Home in a larger map

I have tagged my home in this map.You can see that its surrounded by paddy fields on one side and a irrigation canal which flows nearby.

So i decided to buy this plot.Another interesting factor of this plot is that its govt guide line values is 9 Lakhs .I had to register for this high value and pay tax for entire amount.I took a realty loan from SBI and they provided 80% of the guide line value.So i was able to cover the entire cost of land in the loan itself.
Interestingly this plot has appreciated to 9 Lakhs since then [ Rs 600 per sq ft] in a period of 2-3 years. But the prime area which was quoting Rs666/sq ft 3 years back are still around Rs700/sq ft.I feel that parcels of land which are cheap ( can be due to many reasons , like lying in the outskirts of city) tends to appreciate at a faster rate that what is quoting at a premium price.Hence if you wish to invest in reality go for outskirts for greater rate of return.

Next process is to get the approval for construction. For this we need to hire a Engineer ,prepare a plan for the home you are planning to build and get it approved from govt authorities. Ironically this wont be plan you will execute in 99.9% of the cases.This is because of some stringent govt rules regarding the buildup land and overall land available. The rule is that you have to leave 5 ft on adjacent sides and 10 ft on front and back.If you follow this rules a plot of 1500(30*50) has only 600 Sqft( 20*30) of buildup area..So what to do ??. Just get the approval according govt norms and build according to your wish and be ready to pay a token fine for the deviation.
The fine which i had to pay came around Rs300 for a 6 months period.

My plan as per govt norms comes around 1250 Sq.But my actual plan was around 2000 sqft. One issue which will raise because of underquoting the buildup area is that you will be able to get loans according to govt approved plan only.SBI was ready to value the construction cost as Rs1000 per Sq ft and offer loan of 85% of the total amount.There were able to sanction a loan for Rs10 Lakhs.

Next was the actual planning.This is the most critical phase as errors or suboptimal decisions made here will haunt you for ever. So spend as much time as possible by continuous review and brainstorming. Literally i should admit that i dont have creative skills or prior experience needed here. Luckily one of my friend , Sangeetha , had then recently finished the entire process of building home right from scratch . When i gave my plot sketch and my requirement , she gave outline design in a day. My plan was to have 3 BHK duplex model of 2000 sqft .To much of my surprise this plan remain the same(almost 95%), even though i tried many more possible combination for around 6 months. So better approach a right person. Another reason for spending 6 months is due the recession in West and its effects in India.Due to jittery around the layoffs i had to postponed start date for few months.Also the cost of building materials was coming down which provided a compelling reason to wait and watch.

Financialy my aim was to execute the plan with under Rs 1100 per Sq ft ( 22 Lakhs for 2000 sqft) and also be ready for a overshoot of 10% in budget. A Labour contract @ Rs150/Sqft was arranged with a contractor. According to this he will take care of arranging labour and he will be paid approx 3 Lakhs for the entire construction. We had similar deals for wood work , Plumbing & Electrical. Final cost came to around 25 Lakhs. Initial plan didn't include compoundwall , watertank , ornamental work etc. Considering all this it can be said that project did completed within budget.

Pie charts which represents various costs are given below. This doesn't include woodwork(cub boards) and final painting.

From MyHome

From MyHome

From MyHome

More photos can be seen in the following album



  1. "A old adage goes on to mention "Building a Home" and "Getting a marriage done" are the toughest jobs to accomplish".U have achieved the former Prem now brace up for the latter.:P

  2. Congratulations Prem. Never had this opportunity as our home was built when I was in School. I could feel how it would have been during these building days.

  3. Home Sweet home.. Congratulations... Thanks for your sharing..
    STC Technologies

  4. hi, Congrats, Happy to see your home sweet home. For all your needs