Building home: How lack of clarity on finance can lead to doom

We've heard countless stories of people who have successfully completed their dream homes. However, there are also instances where house construction turns into a nightmare. The decision of whether to live happily in a new home or to live without peace lies solely with the homeowners. Just as it's important to meticulously choose the right engineer and contractor, it is equally crucial to control unnecessary expenses and make informed decisions during the construction process. Only then can homeowners ensure a successful and fulfilling homebuilding experience. Let's delve into some real-life experiences.

Avoid extravagant spending
In one instance, a wife was overseeing the construction of their house while her husband worked in Dubai. She had no clear understanding of her husband's profession or income in the Gulf. As the construction progressed, the wife complained that AC points were not installed in all the rooms. Why so when the family consisted of only four members? Their argument was: "Is it not not our money that is being spent.” Eventually, provisions for AC were made in every room.

They chose expensive marble for flooring, but the work remained incomplete due to lack of funds. By the final stages of furnishing, they were completely broke. Unbeknownst to the wife, her husband had a modest job at a small mobile shop. She hadn't considered the increased electricity bills and connection charges that came with installing multiple AC units. While the wife's extravagant choices played a part, the husband was equally responsible for the fiasco for not being transparent about their financial situation.

The lesson that should be learned from these instances is that the size and features of a house should be determined by one's financial capacity. Before starting construction, meticulously calculate your savings, potential loan amount, and any other financial resources. It's crucial to have a solid plan for repayment, whether it involves loans or debts, before finalizing your budget.

Another homeowner ended up completely demolishing and rebuilding his staircase after the housewarming ceremony. Several guests who attended the event commented on the staircase's unappealing design. The next day, the owner demanded a new design, incurring significant and unnecessary expenses.