Owner Builders
On the face of it building your own home can be an exciting prospect providing you have the required skills such as bricklaying or carpentry. But unfortunately just having the required trade skills is not all the story.
I am not going to attempt to consider all the points in detail but provide a list of items that MUST be addressed. These comments apply to construction of the house to "LOCK UP". That is external walls, windows and doors, the internal walls and the roof. NOT the internal fit out which is where a lot of money can be saved.
- FINANCE - Some banks and other financial intuitions are not
anxious to lend money to Owner/Builders. Their main problem seems to be the
number of homes that either are not completed or take a very long time in
construction. They may only lend money on the value of the land so possession
of the unencumbered title deeds is important.
- INSURANCE - If a registered builder constructs the house
they must provide seven years of indemnity insurance cover against faulty work
and materials. An Owner/Builder must obtain this insurance if the house is sold
in less than seven years but it can be very difficult and expensive to find an
Insurance Company willing to provide the insurance.
- LICENCES - There can be a mountain of paper work and red
tape to plow through before even getting approval to build a house. Unless the
Owner/Builder is experienced in submitting plans for approval to Local
Government and Developers this can become a long and frustrating procedure.
- CONTRACTORS - As the Owner/Builder effectively replaces the
Building Company all the tasks required to be carried out by trades such as
site works, bricklaying, roofing, plastering, plumbing and electrical must be
sourced by the Owner/Builder. All too often the Owner/Builder finds tradesmen
difficult to find or they are forced to pay too much for poor quality
workmanship.
- MATERIALS - There are periods where some building materials are in short supply such as the current shortage of bricks. During these periods the Owner/Builder may find it very difficult or even impossible to obtain adequate supplies of quality materials.
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- FINANCE - Some banks and other financial intuitions are not
anxious to lend money to Owner/Builders. Their main problem seems to be the
number of homes that either are not completed or take a very long time in
construction. They may only lend money on the value of the land so possession
of the unencumbered title deeds is important.