Why would you Owner Build?
You are about to build a new home, renovate, extend? How to go about it? Appoint a Registered Builder?
What about doing it yourself?
This is the time to do your research, invest some money up front, to save at the end of the project by investing your building options.
Why? To save money.
Registered Builders work on margins from 20% plus for New Homes and 30%-40% for Renovations. They are a business and have to make money and for Renovations there is a lot of uncertainty when renovating as to the time they may need with unexpected problems relating to the age of the home.
The money you save by Owner Building goes to your bottom line e.g. if you save $50,000 on Builders price
a) You save the Interest
b) The capital gain of that saving when you sell the home
How to save – The Process
- Decide how much you can afford to invest in your home. As an Owner Builder the bank will require you to have a deposit of at least 20% of the value of the job. Also have a contingency allowance. TIP: Stick to the budget!
- Draw up a rough sketch of what you want, a quantity surveyor (Cost estimator) will be able to give you an indicative price on the job. This gives you an indication of how much money you will need, and you can adjust your plans accordingly.
- Present your sketch to a Draftsman/Architect to draw the plans, they would be able to give you a rough price for the project as well.
- Return to the Cost Estimator with the plans for a final estimation of the job. Now you have what the project should cost, and you can go to market.
- Contact 2/3 Registered Builders, show them the plans and ask for a price to build.
- Decision Time – you can now compare the builder’s prices, quiz them on why there are differences with the Cost Estimators and decide which way you want to go.