Wow! 20 years of helping owner builders source the right loans to complete their owner-builder dreams. When we first started assisting this category of client, it’s hard to believe that 20 years have passed and we would still be providing guidance, advice, and sourcing loans for so many Australians.
It has been an honour in assisting these people and in many cases the families that end up living in these homes, creating wealth, and equity and more critically a safe,healthy and in many cases a unique environment. All while feeling the pride of achievement in the successful completion of a project.
Things to consider
So what do I think are the most critical points when making the decision to be an owner builder? That would be research, review, and getting good advice.
Believe it or not, owning a building is not really that hard to do if you’ve ever organised a family holiday, a birthday wedding or funeral or any other aspect that requires some planning, which is not a normal part of your day-to-day life.
Owner building really is project management at its core as almost all areas of construction require the correct licences to complete. Being certified as an owner builder had many people mistakenly believe that it means one picking up the hammers, saws, and drills to do some of the work.
This is basically a misconception, which is actually illegal for licenced owner builders to do. In fact, even when engaging with a licensed builder and builders, many owners are still surprised how much work they actually have to do. This could include selection of materials, choosing layout design, or picking the right colour schemes, and the list goes on and on.
Why owner builder loans?
So why would someone want to be an owner builder, you might ask. That is because quite simply a builder adds 10% and in some cases 20% to the materials they have to organise to get to the site. Plus, they have to add percent 30% to 50% to the trades that they organise and manage during the course of a build.
So often we see these savings ranging from between 20 and 30% on the overall build cost for an owner builder if they source their materials and trades effectively, which is a significant saving as a rule of thumb.
A $500,000 build can actually cost an owner builder $400,000, which passes on substantial savings. And if you need to think about it in realistic terms, think about what it takes to make $100,000 a year from a job after paying tax.
That is why it’s clear why there are so many people who choose to own a building as an option once they get over the initial fear of the unknown.
Many owner builders pursue managing the construction not just for the savings but more importantly for the quality of the end product. In many home builds, it’s easy to spot a lack of standards in final construction and by the second or third home many homeowners have elected to just manage the project themselves.
Finally for many, it is just the overwhelming sense of satisfaction of building one’s own home; the pride felt by many upon completion is something they will take with them to the grave. This is what we have felt many times over with almost all the owner builders that we have assisted when getting owner builder loans to complete their projects.
Are you looking at buying a property anytime soon? Talking to a seasoned broker will enable you to get the most competitive rate in the market. Start today by talking to our experienced brokers who are knowledgeable in different loan products, especially owner builder loans. Give us a call today at 1300 55 10 45 or send us a message to start your journey.