Key budget considerations for your dream home
Building a home for your family is one of life’s most significant milestones. Home is where your child will take their first steps, where birthdays and holidays will be celebrated, and where you'll find comfort at the end of a long day. Every choice, from the location to the layout, and even the smallest design details, becomes a part of the story you are building for your family.
Needless to say, it takes a fair amount of planning and budgeting to pull off. To kick off your journey, here’s a list of things that you should consider when discussing your budget.
The location
The location has a major impact on all the cost pillars: from the cost of land, taxes, and insurance to the labor and materials. Urban areas, especially within Metro Manila, tend to be more expensive compared to provincial locations. Affluent subdivisions come with higher rates due to strict construction regulations.
The type
There are different types of homes for every type of family and budget. Are you purchasing and renovating a condo, or are you building a townhouse, one of those modern smart mobile tiny homes, or a single-detached family home with your dream garden? You can check options here via Federal Land.
The aesthetic
The complexity of your design directly impacts the cost. Major construction firms in Metro Manila put the average cost of construction alone at a range from PHP 20,000 to PHP 50,000 per square meter. While there are many smaller factors at play, costs are first computed based on:
- Number of floors - More floors mean higher costs due to the need for stronger materials and additional finishes.
- Number of bathrooms - Each additional bathroom increases costs due to extra plumbing and tiling.
- Window types - Opting for glass windows, especially tempered or laminated, can be more expensive than standard masonry walls.
Then, of course, there are the materials:
- Concrete - Offers durability and fire resistance, with good insulation properties.
- Masonry - Ideal for fire-prone areas, masonry is durable and reliable.
- Steel frame structures - Common in modern construction, they offer resistance to heavy loads and are cost-effective compared to concrete.
Finishes and fixtures:
- The types and brands of finishes significantly affect the budget. This includes tiles, lighting fixtures, and other interior details.
The paperwork
Apart from the cost of land, there are other legal necessities that you’ll need to pay for including handling and notarial fees, mortgage registration, and the building permit. For professional fees, you’ll also need to pay architect fees, equivalent to 10% of the cost of the house, and you’ll also need to figure in the cost for a contractor, making sure that you find one that can work with your budget.
Regardless of the amount you’ll need for your dream home, the important thing to do is to start with a budget and a clear set of goals. See how a Metrobank home loan can bring you closer to that dream, and learn more about how you can plan to achieve your family’s biggest milestones below:
