In today’s morning cakap2 at Ramli’s Masjid,some of Ramli’s friends show their concerned and frustrations at the of house prices like in Shah Alam! Why?
They informed Ramli that an apartment price is now reaching about RM200,000 and a terraace house (one storey corner lot with 3 rooms and land size abt 65 ft x 30 ft) now being offered at RM550,000.00?
Is these prices fair,cheap or exorbitant?Why are they selling at sky rocket prices almost 8-10 times the original price offered 25 years ago?Should they be selling just like a 200 or 300% mark up?
Why are there no CONTROL or Monitoring of Property Prices in Malaysia?Whose responsibility is to control and monitor fair house prices?
Are our House Developers Too Greedy to make high profits or their costs of building new homes are in fact too high nowadays?
Lets study some facts first about what actually houses will cost to build?
How Much Will Your New House Cost?
A building plans pro tells how to estimate your home building costs
By Jackie Craven
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You want to build a new house, but can you afford it? To plan your budget, start with a free online building cost estimator. Then look for hidden costs that will add to your final bill. Here are tips from a building plans professional.
“Guesstimate” the Cost of Your New Home
Home building tips by Ken Katuin
1. Contact Local Builders
Meet with builders who construct houses that are similar in size, quality, and features to the home you want. Builders will tell you how much per square foot they usually charge for home construction. They can also give you a ballpark idea of what your dream home might cost. However, it is important to know exactly what is included in the price. If you ask, some builders will provide you a list showing the materials they will use.
2. Count the Square Footage
Look at newly constructed homes that are similar in size, style, quality, and features to the home you want. Take the price of the home, deduct the price of the land, and divide that amount by the square footage of the home.
For example, if the home is selling for $230,000 and the land costs $30,000, then the construction cost is around $200,000. If the home is 2,000 square feet, then the cost per square foot is $100.
Use several new homes in your area to get an approximate square footage price. After you have calculated an average square footage cost, you can multiply that cost by the finished square footage of your house plan to get a ballpark estimate.
3. Expect Some Features to Cost More
The most expensive areas in a home are usually the bathrooms and the kitchen. The number of windows and the size and quality of windows can also affect the cost. Vaulted ceilings and high roof pitches can increase the cost of a home. When using other homes to calculate an estimate, be sure the home has a similar style and features of the home you plan to build.
The cost per square foot is often higher for a small home than that of a larger home. When building a larger home, the cost of expensive items (such as a furnace or kitchen) is spread over more square footage. Consequently, a larger home may have a lower square footage cost than a smaller home. Also, it usually costs less to build a two-story home when compared to a one-story home that has the same square footage. This is because a two-story home will have a smaller roof and foundation. Plumbing and ventilation are more compact in two-story homes.
Small details in the design of your home can make a big difference in the price. To save on costs, begin estimating construction expenses before you select your final blueprints. Here are important factors to consider:
- Size of Home
When building a home, it’s best to work with even numbers. Have your home size rounded up or down to increments of two feet. This reduces wasted materials. Also, it’s most economical to build a home which is no deeper than 32 feet. If the depth exceeds 32 feet, then your roof trusses may need to be specially designed and will be more expensive. - Architecture of Home
Homes that have a rectangular or box shape cost less to build. Having more angles and corners in the architectural design of your home can increase the amount of labor and materials needed to build. Dome shaped homes often make efficient use of materials and tend to cost less than other shapes. - Site Preparation
Preparing a site for construction can have a big impact on the cost of a home. Building on a flat lot will usually cost less. If you have to haul in lots of dirt, do a lot of grading, clear trees, or blast through large rocks, then site preparations can become more expensive. - Cost Overruns
Usually the finished cost of a home is more then the original bid price. Cost overruns occur from overspending the allowances, making changes, and encountering unforeseen problems. Proper planning can greatly reduce cost overruns. In general, it is a good idea to allow an additional 10% to cover unexpected costs. - Inflation and Market Conditions
Usually the cost of building a home increases around 3% to 6% per year. If it will be several years before you begin construction, remember to include inflation into the cost estimate for your home. When using other homes to compare prices, try to use homes that have been built within the last six months.
OK,after studying these factors we can make better decisions on the prices of the house we really want to purchase and pay up maybe with a 20 year installment plan with the bank.
If we make a mistake just imagine the loss,wasteful resources,pain and agony of paying up with the hefty costs and feeling unhappy with the housing deal or purchase?
My real estate friend informed Ramli that maybe next year there can be a housing “bubble” where properties are many unsold,left or abandoned and people just dont have the money to buy anymore?Can it happen?
Imagine our growing up adult children have to buy a terrace house worth RM500,000 in shah alam when the same kind of house only cost RM80,000 25 years ago?The so called cheap homes like flats or apartments now even costs RM200,000 each?
Our salary have not seen drastic increased like 10 or 20 times these 25 years but our houses have been increased almost 600% these 25 years in existence?Our new graduates with a degree only can earn a salary of RM2,500 or 3,500 per month and how can he or she afford to buy a house worth RM500,000?They also have to pay for their living expenses,children needs,and so many others…if they earned RM25,000 a month then maybe its OK but only RM2,500 per month?
Ramli wants to find good answers to these problems and also good solutions so that our children can live with confidence,peace and decent living…..
If you want to share your thoughts do send a note to ramli at this site or email: ramlipromoter@yahoo.com