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Pros and Cons of building your own house on your own land?

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Pros and Cons of building your own house on your own land?

Last updated: March 17 2010
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  • Pros and Cons of building your own house on your own land?

    Prices of property have gone up to new heights now in Pune; with 2BHK costing minimum of 30L and there is no upper limit to it. Can also be in range of 1-3 crores depending on area.

    Is buying a land, building a house on it cheap or costly for same per square feet; for basic required amenities (no need of Spa or Gym)?

    What are pros and cons of buying land and building your own house by contracting to reputed builders?
  • #2

    #2

    Re : Pros and Cons of building your own house on your own land?

    It is all about scale of economy - more you build cheaper it gets.

    Current day builders have more than 100% margins i.e. if it cost them Rs 2,000/-per sq ft including all charges (land, permissions, constructions etc), they will charge you not less than Rs 4,000/-per sq ft.

    All builders sell on differential rate basis, they seldom sell more than 40-50% of the inventory in the initial stage. Once construction starts, they raise the price based on market sentiments. That's why you can see a vast difference in the so-called investor price and last unit bought by the actual user.

    Coming back to your point, it will be worth if you have at least 4 partners to break-even the cost as compared to builder's cost. If you go above 4, it will get cheaper.

    But definitely, one has a lot of flexibility in design changes and fixtures quality etc.
    Kind regards.

    SKG

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    • #3

      #3

      Re : Pros and Cons of building your own house on your own land?

      Originally posted by puser View Post
      Prices of property have gone up to new heights now in Pune; with 2BHK costing minimum of 30L and there is no upper limit to it. Can also be in range of 1-3 crores depending on area.

      Is buying a land, building a house on it cheap or costly for same per square feet; for basic required amenities (no need of Spa or Gym)?

      What are pros and cons of buying land and building your own house by contracting to reputed builders?
      The issue is builders in Pune have evolved too much and so have stopped making gated plot community.
      So very seldom you find a gated plot community and even if one is launched the rates are 3 - 5 times of the nearby land rates.

      They leave you to search the land and get neccessary permission which is a very tough job keeping babudom in mind.

      So you will get irregular community forming in the neighborhood.
      And all you will get is unorganized growth.
      maybe its like fashion now to make flats.

      Some Bangalore builders I find understand the needs of Endusers so have launched such schemes.

      By the way recently an IT company has opened its center in Kholapur ....
      So as said beyond a level the companies will start looking at alternatives ... cheaper options ...
      But builders never learn ..... seeing current profits forgetting long term losses

      Golden Egg story ...
      Last edited February 1 2010, 03:47 PM.

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      • #4

        #4

        Re : Pros and Cons of building your own house on your own land?

        I am happy (or sad) to see unfolding golden egg story in Pune.
        I concur with you.
        Pune builders will never learn a lesson.

        Originally posted by frugality View Post
        The issue is builders in Pune have evolved too much and so have stopped making gated plot community.
        So very seldom you find a gated plot community and even if one is launched the rates are 3 - 5 times of the nearby land rates.

        They leave you to search the land and get neccessary permission which is a very tough job keeping babudom in mind.

        So you will get irregular community forming in the neighborhood.
        And all you will get is unorganized growth.
        maybe its like fashion now to make flats.

        Some Bangalore builders I find understand the needs of Endusers so have launched such schemes.

        By the way recently an IT company has opened its center in Kholapur ....
        So as said beyond a level the companies will start looking at alternatives ... cheaper options ...
        But builders never learn ..... seeing current profits forgetting long term losses

        Golden Egg story ...

        Comment

        • #5

          #5

          Re : Pros and Cons of building your own house on your own land?

          On of the most important point to be considered is "security".
          Bungalow is little risky.
          Say you plan to go out of Pune for around 4-5 days. Whose gonna look after it in your absence.
          A flat is inside a colony. You get security guards.
          Hence flat is a "bit" safer compared to a bungalow.

          If you get it in a row house scheme e.g. Laburnum Lane, Balewadi, or Sujay Garden, Mukund Nagar, it will be a difference case.
          (Of course, I don't have much idea about Laburnum Lane or Sujay Garden's security, mentioned it just for an example)
          Finally your choice.
          Last edited February 8 2010, 04:18 AM.

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          • #6

            #6

            Re : Pros and Cons of building your own house on your own land?

            I agree with the above issue mentioned about "Security" this is the major issue for indpendent bunglow.

            I will never go for this in Pune.. Pune is becoming very risky and unsecured place for bunglow socities.

            I have seen many security experiences with my relatives friends those who own independent bunglow or rowhouse.

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            • #7

              #7

              Re : Pros and Cons of building your own house on your own land?

              Security is a must

              Man, building a bungalow without security? How can one even think about doing so. Those whom I know have 2-3 guards 24*7 as well as home security & surveillance gadgets. It is really surprising how people can even think of building bungalow without security guards as well as servant quarters outside. If this is not there, no point in building bungalow.

              Btw, flats aren't safe either in all cases. I have seen projects where there are 300 or more flats, the guards hardly bother to check everyone entering. Recently in our area, theives came in maruti Zen & burgled 3 flats.

              Man, nothing beats private security, if it is armed, even better.

              * I don't understand when people spend 80L+ to few Crores on house, why do they try to save money by not hiring guards & surveillance systems?
              If you are happy, you are successful.

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              • #8

                #8

                Re : Pros and Cons of building your own house on your own land?

                I would advice to go for German Sheppard’s; they are strong enough to secure your costly house and very much loyal than security guards

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                • #9

                  #9

                  Re : Pros and Cons of building your own house on your own land?

                  Originally posted by realacres View Post
                  Man, building a bungalow without security? How can one even think about doing so. Those whom I know have 2-3 guards 24*7 as well as home security & surveillance gadgets. It is really surprising how people can even think of building bungalow without security guards as well as servant quarters outside. If this is not there, no point in building bungalow.

                  Btw, flats aren't safe either in all cases. I have seen projects where there are 300 or more flats, the guards hardly bother to check everyone entering. Recently in our area, theives came in maruti Zen & burgled 3 flats.

                  Man, nothing beats private security, if it is armed, even better.

                  * I don't understand when people spend 80L+ to few Crores on house, why do they try to save money by not hiring guards & surveillance systems?
                  Sadly, private security has become a necessity as the police is no longer a deterrent to any kind of crime. Even the process of collecting evidence by the police in an investigation has been substituted with drugging suspects via narco-analysis! The BW cover-page article on private security was quite startling in how big this business has become! It is the same situation in most other countries with weak police forces, including Pakistan!

                  It is actually quite alarming that there are virtually no new gated community projects or developed plots for sale in Pune! Sure, 80% people may prefer apartments, but what about the rest 20%? Compare it to other cities, and it looks like there is something bizarre going on in Pune RE.
                  Last edited February 8 2010, 04:01 PM.

                  Comment

                  • #10

                    #10

                    Re : Pros and Cons of building your own house on your own land?

                    Originally posted by asliarun View Post
                    Sadly, private security has become a necessity as the police is no longer a deterrent to any kind of crime. Even the process of collecting evidence by the police in an investigation has been substituted with drugging suspects via narco-analysis! The BW cover-page article on private security was quite startling in how big this business has become! It is the same situation in most other countries with weak police forces, including Pakistan!

                    It is actually quite alarming that there are virtually no new gated community projects or developed plots for sale in Pune! Sure, 80% people may prefer apartments, but what about the rest 20%? Compare it to other cities, and it looks like there is something bizarre going on in Pune RE.
                    Yep, private security is expected to become a INR 15,000Cr business in next few years. This includes personal escorts as well (hey not that type of escorts, it is already worth US$20bn worldwide).

                    Coming to gated plots, man I love this concept. I said somewhere that if I had enough B-money, I would have definately ventured into this.

                    Coming to builders, well builders can sell the flats & get TDR & earn more & more...while in case of plots, the builder loses the rights on it once sold. The profit margins in flat as of now are more than that of plots, hence no builder is coming forward. Those who are there either price it 4-5 times the rate of freehold plots nearby or comes with conditions apply like only that builder can construct the house, rates for construction will be applicable on salable area & not carpet etc. Hence, I as a buyer would avoid these type of projects as well.

                    So, the solution remains:- Buy freehold plot in good locality or build a gated plot community on your own. It will serve your purpose, earn you some good bucks & make buyers looking for plots happy too as the deal would be better than what other builders offer.
                    If you are happy, you are successful.

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