Top Tips for Successfully Owner Building a Project
At Intellichoice, we’ve been helping Owner Builders turn their dream houses into a reality for more than ten years.
We’ve seen lots of people embark on the Owner Builder adventure and we’ve learned (sometimes the hard way) the most common mistakes that can trip people up and how to avoid them.
Here’s our Top Six Tips for getting it right:
Tip Number One
- Make sure the potential savings are worthwhile.
- As we’ve explained in previous articles, builders are often able to employ economies of scale to purchasing and can often get materials much cheaper than the average owner builder.
- This means, that even after they have put a margin on top, material costs may still be cheaper through a builder.
- As a general rule, Owner Builders are more likely to make significant savings on mid to higher construction values and on projects designed by an architect.
Tip Number Two
- Firstly if you aren’t from the industry, it doesn’t mean you can’t become an Owner Builder.
- It just means you need to find a builder who can help you add to your skill set.
- Many credible builders are happy to enter an arrangement where they Project manager the job for you in return for an arranged bonus. This arrangement means you get professional expertise on site without losing the cost savings on materials and labour.
Tip Number Three
- Do your Research – and make sure it is current.
- As with most industries, there are constantly innovations and changes. Subscribe to industry magazines and make sure you know what is going on.
Tip Number Four
- Don’t underestimate the time it will take to complete the project
- Weather, tradesmen’s schedules are just two of the factors than can slow your project down.
- Do your research, calculate how long you think it will take and then allow for 30% more time.
- If you finish earlier – great news but if running overtime can have significant financial implications.
Tip Number Five
- Go with a financial institution that understands the needs of Owner Builders and has a specific product that works.
- Owner Builders have different loan requirements to those that are built under a builder contract.
Tip Number Six
- Use us to get your finance.
- We know how to present the financial details of your project to valuers and banks in way that allows them to understand how the Owner Builder process works.
- We can save you time and money by anticipating the questions the banks will ask and answering them in such a way it makes financial sense for them to fund the loan.