Importance of Planning when Building a Home or Buying Property

Investing is all about taking risks, right? But even when taking risks, you need a plan. Consider this scenario, a man spots a worthy piece of land by the roadside. The plot is big enough and is of a fair price. He hurriedly buys the land, and since it’s by the wayside, he builds shops. Somewhere along the line, he realizes that he is cash-strapped, and the construction project comes to a standstill.

Emomeri Maryanne Emomeri Maryanne
Dec 17, 2020 - 05:48
0 572
Importance of Planning when Building a Home or Buying Property
Photo/ Courtesy

The man was presented with a good opportunity, and he had a good idea, but he didn’t have a plan. Having a plan is important, but people often overlook it; this ends up being costly. Some of the roles that a plan plays in real estate investment include:

  1. It saves you from overspending

One of the vital things that a plan will do is make you save money. Before you even do anything else, you will first ask yourself if you have money, and will it be enough? You will have to plan how you are going to finance the project. With these in mind, you will be able to come up with the exact budget and you will need to stick to it. Without a plan, you will not be sure what to buy. The contractor will come up with random demands, and you will purchase even unnecessary things, and end up overspending.  

The man in the scenario above could have first started building one or two shops. Then as the two would have provided finances for constructing the other shops.

  1. Avoids complications

This is the most obvious of reasons for having a plan. In the example above, financial complications were evident. Other complications that may arise are the shortage of manpower, poor quality of building materials, poor designs and many others.

  1. A plan will make building contractors take you seriously

When you are not deliberate with your construction, you will do things haphazardly. Contractors will note your weakness and take advantage of you. If you plan, you will first get to know what is needed for the construction, then you will have a design plan and you will be more organized. This makes your contractor take you seriously.

  1. You will have time to choose the best contractor for the job.

Without a strategy, you may do the right things, but not in the right order. It may take time to choose a good contractor for your construction. You have to interview them, and if he was being referred to you by someone else, you have to do background checks and look at his other complete projects. You also have to negotiate with him, and you must be deliberate with planning when doing this.  

Planning may require a lot of thinking, but it is certainly a good way to be organized and reduce the number of complications.

 

Tags: