Owner builder loans or owner builder finance is our speciality with 20 years of experience in sourcing and completing or settling these mortgages for our clients. We can help you achieve your dreams. Building or renovating your home or investment property as an owner builder requires key knowledge to be successful and having placed many hundreds of these loans, Intellichoice provides you with some valuable insights. Being able to source up to 75% Loan To Value (LVR) loans can be the difference between your project being feasible or not. So What has changed in 2021? Well, one thing that hasn’t is lenders caution around who is applying and do they possess the skills and knowledge needed to be successful.
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Nobody wants a half-built home with dreams and finances in tatters. With the recent pandemic followed by a boom in house prices and burgeoning construction lenders are keen to assist for the right clients. With this in mind, we can give some key insights into how to prepare for an owner builder project and the necessary owner builder home loan.
Start with the end in mind by checking what your project will be worth realistically before starting. Are the valuations for the completed property in line with the current market? The whole “ Should we or Shouldn’t we” is based on what the market thinks: not so much on what you may be thinking. Also, as the owner builder loan will be advanced on the value via either costs and or end market value of the property then proper understanding of this is key.
Always consider having an experienced person who can assist you in project managing a build. You wouldn’t show up to a job that requires specialist skills after reading a book on the subject. Building a house or renovating is very complex with many moving parts-up to 200 plus different “sets of hands” and thousands of differing materials is not something to give your best shot at. Find someone you can trust-and take their advice.
Understand the true costs of building or renovating your project. Site preparation costs, professional and Government fees, education/licenses/permits, differences between plans and detailed drawings, proper take offs or estimates of materials and labour,town planning, engineering, certification, Insurances, landscaping and definitely finances insurances, the list can be extensive-map them all out.
Critical as it used to be a case of getting a quote and adding a zero to be close to a figure that the eventual cost might be!-This won’t do for an already jaundiced looking banker or credit manager deciding to give you a loan. Trying to just get the “best price” on everything is not always wise as critical elements can be affected in the building or achieving a certificate of occupancy at the end of the build. Getting budgets and cost estimates correct, to end up with a valuable home takes legwork and proper inquiry-don’t be lax here.
This does not mean bullying and harrassing contractors and suppliers to move faster, which generally ends up with the opposite happening. Understanding the sequence of what goes where and when requires specialist understanding from your supervisor. Example would be needing to order windows seven weeks before they need installing from some companies, so contractors aren’t standing around waiting for you to get your act together. Be aware of when skills and materials are needed. To not do so can mean a six month build turns into eighteen months very quickly. This is an area many past owner builders have fallen down on-thinking they can save money by scrimping and trying to “go it alone” only to find out a builder could have completed in a quarter of the time and possibly cheaper. Be aware first timers you can save money most definitely as an owner builder but again take proper advice.
Building or renovating is not something you will do often in your life unless it becomes an obsession, so try and breath enjoy the highs and lows of the experience and share with others on the forums and groups we can connect you with. The satisfaction level on completion will be all the sweeter! Use us, we sort of know what we are doing when it comes to loans and finances for your project!
Owner Building is a rewarding way to build. It’s highly satisfying to see your plans come to life, while also generating significant equity in the process. But despite the benefits, getting owner builder finance can be difficult, especially when there are so few lenders in Australia that offer this type of loan. Don’t waste weeks or months with other lenders or brokers – our experienced team knows exactly what’s required to get your loan approved (we’ve been arranging them for 18 years).
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Your dream home might make a lot of sense to you, but even the most flexible of lenders might not see it the same way. For them to approve your loan, they need to clearly understand the merits of your project in order to reduce their lending risk. Which is where the experience of our specialist broking team can help. From council approvals to cost estimates – we know exactly what the best owner builder lenders are looking for (and where to find the cheapest and most flexible construction loans).
At Intellichoice, we’re leaders in finance, especially when it comes to Owner Builder Construction Loans. With our new construction management app (coming soon), you can save:
It’s a revolution and it’s available to all owner builders who work with us. Find out more today by getting in touch.
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