Building Your Own Home? Read This First


Like many other people, you may harbour a secret dream to build your own house. A house outside the chaos of the city, on a charming little plot of land. You can live there whenever you need a break from the big city stress, enjoying your free time with your loved ones. Or it can serve as a retirement home for you and your spouse.

You may have bought a plot of land, and now you wish to construct a lovely villa over it. Do read the rest of this article before you do so.

Why build your own house?

Many people are jaded by the hustle and bustle of the big cities. Fast paced modern lifestyles and small houses in congested cities leave little scope for rest and recuperation. The cities are also increasingly polluted. Living the modern life is financially fruitful, but it comes with its own set of challenges.

Many people today prefer to rent homes in their city of employment, while building a dream house in their hometown. When you build your own house, you can design it to your tastes and have all the required features and amenities installed in it. Very rarely are ready possession homes 100% satisfactory to all buyers. Instead of conducting extensive renovation in a ready home, it is always better to build a house from scratch the way you want it.

How to accumulate the finances

But building a house is not always the dream activity you envision it to be. Construction and material costs rise every year, and the project cost may shoot up due to delays or factors beyond your control. Besides, you must compile a lot of paperwork, conduct independent research on the land and locality, and also arrange for the finances at every stage of construction.

Most people who build their own homes do so by taking property development finance. This is simply referred to as a ‘home construction loan’ which is a loan given to build your home or make extensive additions to an existing house. Leading housing finance companies have good property development finance products to help you build your own house on a plot of land that you own.

But before you apply for the home construction loan, do consider that:

It’s not as simple as it appears. Most applicants for property development finance assume that once they submit the land records and necessary permissions, the housing finance company will approve the application and disburse the loan. It is not so – you may have to begin the construction up to the lintel level or lay the foundation before the loan is disbursed.

It’s not that complicated, either. Leading home finance companies in India, from banks like Axis Bank to financial institutions like Punjab National Bank Housing Finance Limited (PNBHFL) offer a variety of home loan finance options. From home loans to residential plot loans, there are many loan

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