A common question is, how much budget is needed to build a house? In reality, there isn't a fixed number because the size of the house and the specifications of the materials vary. Today, TerraBKK will teach you a rough method to calculate home construction costs so that you at least have an idea of how much budget to prepare or how much more you might need to borrow. This way, you can get ready early on, as a significant issue for those building their own homes is going over budget and ending up with a house that doesn't meet their expectations... The house is unsatisfactory, and the costs are high. This is something many people might fear when considering building their own home.

                However, nowadays, we can see many reviews of easy home-building experiences. Some individuals, even women alone, have built homes for their parents. Seeing this, many might start to think that building a home isn't that difficult after all. Today, TerraBKK would like to introduce some simple steps to calculate home construction costs on your own as follows:

1. Set a budget in your mind and gather the cash you have on hand.

               

Of course, money comes first. First, assess how much cash you have and set a budget in your mind. If you're unsure, you can go to the bank and consult with an advisor to help calculate how much you can borrow for home construction costs based on your income. Additionally, visiting the bank will help you understand other minor expenses, such as life insurance, various fees, and the fact that you may not be able to borrow 100% of the costs.

2. Find your dream house design.

                This step is free-style. Some may already have a design in mind, while others might ask someone they know to design it for them. But for those who haven't thought of anything yet, the Bangkok Metropolitan Administration offers free house designs for download. They provide detailed plans ready to use with contractors. You can find various designs to download at this link >> Free House Designs for the Public - 120 Designs  and Free House Designs - 230 Designs or you can find free designs from other websites as options.

3. Start calculating construction costs.

                Once you have a design you like, check the total usable area in square meters. Now, let's look at the expenses to determine what type of materials to use and their quality to calculate the home construction costs per square meter. Generally, we will calculate based on the construction cost estimates set by the Thailand Property Valuation Foundation. You can download it for free at >> Building Construction Cost Estimates 2560. However, it should be noted that relying solely on this may not be accurate since estimates are often lower than reality. If you want to enhance the aesthetics and use extravagant materials, this estimate may not apply. But if your house design uses standard specifications, let's see how to calculate it.

                For example, if the chosen design is a two-story single-family house with an area of 180 square meters made of concrete, and you want high-grade A materials and premium products, the home construction cost would be 14,500 Baht per square meter, which means the total home construction cost for this house would be approximately 14,500 x 180 = 2,610,000 Baht.

               But wait, we cannot strictly adhere to the figure of 2,610,000 Baht because we need to account for other expenses such as materials that need to be set aside for contingencies, additional features you might want to add during construction, interior decoration costs, furniture, etc. Additionally, if anyone wants a more premium house, with unique designs that complicate construction, it is advisable to consult an expert for a detailed estimate. However, if calculations exceed the budget set, consider reducing specifications or the size of the area to achieve a house that still fits within the budget - TERRABKK.

Article by: TerraBKK Knowledge Base

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