- Gabriel Mikael
- Jul 3
- 3 min read
To provide a cost breakdown comparison between building a home now versus waiting until next year, I'll focus on key cost categories: materials, labor, financing, and overall project management costs. Here’s a detailed comparison for each of these cost factors, including how they are likely to differ depending on whether you choose to build now or wait a year.
1. Material Costs
Category | Building Now (2025) | Waiting Until Next Year (2026) |
Steel | ₱75,000–₱80,000 per ton (stable prices) | 5–10% price increase due to inflation and demand |
Cement | ₱220–₱250 per bag (some fluctuations) | Expected increase of 5–8% due to energy costs |
Timber/ Wood | ₱35,000–₱45,000 per cubic meter (volatile) | Prices may rise by 10% due to supply chain issues |
Other materials (e.g., glass, tiles) | Relatively stable, ₱20,000–₱50,000 | 5–10% increase expected |
Total Materials Estimate | ₱1.5M to ₱2M (for a 100 sqm house) | ₱1.6M to ₱2.2M (projected 5–10% increase) |
Summary: If you build now, you’re likely to benefit from more stable and lower material costs. Waiting could lead to a 5-10% increase in overall material expenses, especially due to inflation and potential supply chain disruptions.
2. Labor Costs
Category | Building Now (2024) | Waiting Until Next Year (2025) |
Skilled Labor (per day) | ₱800–₱1,200 per day | Likely increase by 5–10% due to inflation |
Unskilled Labor (per day) | ₱600–₱800 per day | Expected increase to ₱700–₱900 |
Foreman (per project) | ₱40,000–₱60,000 per month | Likely to rise by 5–8% |
Total Labor Estimate | ₱800,000–₱1M (for 100 sqm house) | ₱900,000–₱1.1M (projected 5–10% increase) |
Summary: Labor costs are expected to rise, with a 5-10% increase likely next year. Starting the project now would save on labor expenses as wage inflation kicks in over the next year.
3. Financing Costs (Interest Rates)
Category | Building Now (2024) | Waiting Until Next Year (2025) |
Mortgage Interest Rates | 6%–7% (current rates) | Expected to rise to 7.5%–8.5% due to rate hikes |
Loan Term (20 years) | ₱3.5M loan @ 6% interest = ₱25,163/month | ₱3.5M loan @ 8% interest = ₱29,328/month |
Total Interest Paid (over 20 years) | ₱3.54M over 20 years | ₱4.54M over 20 years (approx. ₱1M more in total) |
Summary: If you finance your home build with a mortgage, waiting until next year could significantly increase your total financing costs. With projected interest rate hikes, your monthly payments and total interest paid over the life of the loan could increase by ₱1M or more.
4. Additional Costs (Permits, Fees, Miscellaneous)
Category | Building Now (2024) | Waiting Until Next Year (2025) |
Permits & Licenses | ₱30,000–₱50,000 (varies by location) | Could rise with inflation (3–5% increase) |
Project Management Fees | ₱100,000–₱150,000 (varies with size) | 5% increase expected |
Insurance (construction-related) | ₱20,000–₱25,000 | 5% rise expected |
Total Additional Costs | ₱150,000–₱225,000 | ₱160,000–₱250,000 (slight increase) |
Summary: Waiting until next year could increase your permit, management, and miscellaneous costs by about 3-5%.
5. Total Estimated Costs
Category | Building Now (2024) | Waiting Until Next Year (2025) |
Materials | ₱1.5M–₱2M | ₱1.6M–₱2.2M |
Labor | ₱800,000–₱1M | ₱900,000–₱1.1M |
Financing Costs (Interest) | ₱3.54M (over 20 years) | ₱4.54M (over 20 years) |
Additional Costs | ₱150,000–₱225,000 | ₱160,000–₱250,000 |
Total Costs (excluding interest) | ₱2.45M–₱3.25M | ₱2.66M–₱3.55M |
Key Insights:
Building Now (2024)
Total costs excluding interest: ₱2.45M–₱3.25M
Interest over 20 years: ₱3.54M
Total cost advantage: Building now locks in lower material, labor, and interest rates, which can save you around ₱100,000 to ₱300,000 on immediate construction costs and ₱1M on long-term financing.
Waiting Until Next Year (2025)
Total costs excluding interest: ₱2.66M–₱3.55M (likely higher due to inflation)
Interest over 20 years: ₱4.54M (due to rate hikes)
Total cost disadvantage: You risk a 5-10% increase in materials and labor, higher financing costs, and a more expensive overall project. The longer-term impact of interest rate increases alone could cost you an additional ₱1M in interest payments.
Building a home now offers significant cost savings, especially when factoring in rising labor, materials, and interest rates. Waiting until next year could result in higher expenses across all categories, especially in financing. The total cost of waiting could be upward of ₱1.1M to ₱1.5M more in the long run due to inflation and rising interest rates.
If you have the financial flexibility and resources, starting now is likely the most cost-effective option.
