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Tata Capital > Blog > Loan for Home > Top 5 Challenges Faced While Constructing a Home

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Top 5 Challenges Faced While Constructing a Home

Top 5 Challenges Faced While Constructing a Home

When getting a new house, you probably have only two options – buy a new home or build one. While buying a furnished house is convenient, you pay the price, do the paperwork, and you are ready to move in. On the other hand, constructing a home gives you total control over the construction process. If you choose to build a house, you are free to hire builders as you like or buy construction materials from dealers of your choice. 

Between buying and building a house, are you leaning towards new home construction? If so, it will indeed be an exciting journey, but one that is not without its parcel of challenges.

Here are the top five challenges you may face while building your home:

Finding the right builder

The first challenge you will encounter in your home construction is finding a skilled builder. Although you will find custom home builders in every nook and cranny, how do you know if you can trust them with a life-long investment? For starters, if possible, talk to their current and past customers and check their profile online for ratings and reviews.

Besides, don’t just go for the experience; choose a contractor with relevant house construction expertise. For instance, if a builder is known for constructing flats, then maybe they aren’t best suited for building cottage-styled and row houses.

And before you hire a builder, enquire about the materials they will use and how they will source the materials. It will give you a better perspective and help you compare the costs of different builders. Once the construction begins, ensure they provide you with detailed and regular progress and financial reports.

Creating a green home! Yes, or no?

When building a house, you use a lot of natural resources like timber, water, etc. Not to mention the carbon emission when you start living in the house and use electricity and other facilities. Since a home is a necessity, you will also face the challenge of making some intelligent and environmentally friendly decisions.

Today, when environment-friendly products are the norm, green homes are becoming the new normal. While building houses, homeowners have several environment-friendly options regarding construction techniques and materials. You can make an effort and try to source materials that are made from recycled waste.

Or, you can equip your new home with a rainwater harvesting mechanism, solar panels, and more green solutions. This way, you can save significantly on water and electricity bills and, at the same time, contribute actively to environment protection.

Additional Read: Will Green Homes be the New Smart Way towards Real Estate Investment in 2021?


Budgeting is the biggest challenge you will face while building a house. Your house is not only a long-term commitment but also a space that fits your aesthetic. An urge for splurging is understandable but managing construction expenses is a challenge. Therefore, create a realistic budget beforehand and potentially save yourself a fortune. Besides, you can ensure that your savings don’t take a hit by availing home finance.

Furthermore, maintaining a daily budget will help you know the extent of funds each construction stage is soaking and how that is affecting your household’s spending.

Permitting and documentation

Home construction is usually accompanied by some paperwork essential for avoiding roadblocks ahead. Whether it’s the loan application or concerned authority – be ready with KYC, income, job, plot documents, house blueprint, NOCs, approved plan, ownership papers, cost quotation, budget outline, and more.

Since you are building a custom house, it is important that you get your design and floor plans approved by the local authority before beginning construction. With approval from the local authority, your building can continue without attracting penalties or delays due to legal issues.

Setting and sticking to a construction timeline

When people build a home, they spend considerable time choosing materials and amenities for their new house. You may get the impression that you can have it all. However, success lies in prioritising your tasks and sticking to them. Decide early on the must-have amenities and features and rule out the ones you don’t need. Ensure smooth construction progress with a labour force at work, resources at disposal, and a plan at hand.

Now that you have a budget, builder, and a home loan, let the contractors do the magic.

Additional Read: Home Construction Loan: Everything You Must Know

Parting thoughts

Sure, constructing a home that you envisioned presents a few challenges made easy with a credible lending institution. As for financing your home construction, let Tata Capital finance your dreams with the best housing loan offerings. With reliable services and our attractive home loan interest rates, construct a home that defines you.Before signing off, we also recommend you use our reliable home loan EMI calculator to help evaluate your potential monthly instalments with us. Visit Tata Capital website for more information on house construction loan today!

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