To avoid delays and to make sure the house actually functions as a valuable asset, it is a good idea to know how much money is required to build a house.
Others still prefer building a new house from the ground up, even though completely completed homes are favored by most buyers because they are typically ready for occupation and come with no additional construction fees. The opportunity to create a truly dream house, where every part of the property is precisely how the owner wants it, is the common driving force behind this.
But aside from the logistical challenges of starting from scratch, building a home, there is also the issue of financing the endeavor, which is more said than done. There are many expenses an owner must make, from hiring a contractor to obtaining the required permissions to buying building supplies, and it’s crucial to account for them all to make sure you don’t suffer any unforeseen or unexpected costs when you decide to build a home.
How Much Do I Need to Build a House?
Terraced residences and typical standard homes (with one to two bedrooms) typically range in price from PHP 30,700 to PHP 38,000 per square meter. On the other hand, the price per square meter for detached homes and luxurious dwellings ranges from PHP 60,900 to PHP 65,150. These numbers already account for the cost of mechanical, electrical, and plumbing services and including the latest inflation happening around the world.
What Permits and Paperwork Do I Need to Build a House?
Along with the personnel and supplies required for construction, you also need to obtain a variety of permits and documents in order for your project to move forward. These include the following:
Architectural Plan – A plan that will serve as a guide for building the home. Your finalized contractor offers this.
Barangay Permit – is required, and your neighbors must also sign it, as it is issued by the barangay that has control over the area you have chosen.
Building Permit – After obtaining the Barangay Permit, you must submit it to the city hall along with the Architectural Plan in order to obtain the Building Permit that is necessary for you to begin construction on your home.
Occupancy Permit – After construction is complete, you’ll also need to obtain an occupancy permit. These papers attest to the satisfaction of a qualified building surveyor with the work that has been accomplished and the suitability of the new home.
Can I Use the Building Plan to Establish a Budget?
You can refer to the final plan and designs you produce for the project to get a more precise estimate of how much building a house will cost. This is because, in addition to the previously indicated price range per total floor area, the expenses also rely on the following factors:
Finish Type – From basic to beautiful. An attractive finish can cost up to Php40,000, while a regular finish may cost Php20,000 or more.
Timetable – Hasty construction projects often require more workers than necessary to complete them within the allotted time frame.
Location of the lot – If your lot is located lower than the road and would need filling the land, the cost would logically increase.
Using the Budget to Make a Plan, Which Results in a More Specific Budget
However, if you have money saved up and know exactly how much you can spend on constructing a new home, it could be preferable to tell your contractor or architect your budget up front. Just make sure the contractor you choose is properly licensed and has a reputation for producing high-quality houses that adhere to building code requirements in the Philippines.
Your house designs are created and sketched, technical specifications and a bill of materials are created with your budget in mind, and a final project cost is determined. A construction contract is signed and the aforementioned building permits are obtained once all parties have reached agreement on every detail. Shortly after, the construction phase starts.
Can I Build a House for 150k?
In Metro Manila, you might not be able to obtain much for that money, but if you’re prepared to relocate to one of the most remote regions in the Philippines, you could be able to construct a modest home for PHP 150,000. This is particularly achievable if you can locate reasonably priced labor and if you already own a plot of residential land. These days, little homes under 11 square meters are very trendy. You could use these kinds of homes as inspiration while creating a house on a PHP 150,000 budget.
What Is the Cheapest Type of House to Build?
Standard nipa huts or Bahay Kubo would be the most affordable kind of home to construct. The cost of the actual physical structure of the house, including labor and materials, can be in the neighborhood of PHP 20,000. Depending on the location and size of the property, you can anticipate a final cost of roughly PHP 80,000 or more when you add up the costs of land, building licenses, and other expenses.
What Is the Most Expensive Part of Building a House?
Framing is the most expensive component of a house’s construction. The floor, ceiling, roof, and walls are common frame components. Being that the frame of a house serves as its skeleton, it must be the proper size and shape. If not, the house’s structural soundness will be compromised, making further construction impossible.
Costs for framing are influenced by labor, the size of the property, and the building materials utilized. A professional carpenter is also required to properly design and manage the construction process because it is one of the most time-consuming and complex aspects of building a house.
Roof framing can cost up to PHP 300,000 for a small 54 sqm two-story house, while the overall cost of framing for the ground floor and second-floor foundations (including lintel beams and stiffener columns) can range from PHP 280,000 to PHP 320,000.
Can I Get a Loan to Build a House?
You can receive a loan to build a house in a variety of ways, yes. Nowadays, the majority of banks provide house loans with a minimum loan amount of PHP 200,000 and an average interest rate of 6%. Additionally, the Pag-IBIG fund offers many housing loan programs for its members as well as a short-term multipurpose loan for small house modifications.
The typical Pag-IBIG home loan has an annual interest rate as low as 5.5% and a maximum loan amount of Php 6,000,000. The Affordable Housing Loan Program, which offers interest rates as low as 4.5% annually based on your monthly income and place of residence, is available to those making the minimum wage.
These housing loans can be applied for when building a new home, buying a house, remodeling your home, or even refinancing an existing mortgage.
To know more about How to Apply Building Permit in the Philippines
To know other construction guides, tips, and methodology for beginners, veterans, and contractors, please see here.
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