What’s It Like to Be an Owner Builder?

to be an Owner Builder - intellichoice

What’s it really like to be an Owner Builder?

Geoff shook his head glumly. “That’s the third bank that knocked us back. Each time I speak with anyone, they are all really enthusiastic right up until I mention that we want to owner build. When I do, it’s like I just grew another head – they can’t get off the phone quick enough.”

Susa rubbed his back “Maybe it is time we thought about just bringing a builder in and building the house that way?” “But I’ve always dreamed of building the home for my family to live in,” Geoff said. “It was one of the reasons I apprenticed as a carpenter.” “Maybe it is time to try a specialist broker? There quite a few of them on the internet and it seems that some of them only do owner builder finance.”

Geoff sighed. “I guess. Let’s make some calls on Monday and see what we can find out.” Quick Facts on Owner builder finance. Owner builder projects are much less common in Australia than standard construction home loans. It is not an area that banks traditionally like to operate in and it pays to have someone on your side who knows which financial institutions are currently offering owner builder finance and knows a range of packages on offer. Specialists in owner builder finance also understand the importance of research and will often use tools such as RP Data and Real Estate.com to give the project the best possible chance to go ahead.

For many owner builders, for example, it is difficult to get an accurate valuation because banks traditionally add the cost of the land with the proposed cost of construction. But if you are planning on saving $100,00 on construction costs, that saving can actually work against you in a valuation. In the current economic climate, valuers are under pressure to not overvalue property and it is very easy for them to take a conservative approach to your project. Specialists in Owner Builder loans use the research available to them to research the local area and, if necessary challenge the final valuation based on the factors such as the individual qualities of the property.

The types of questions a specialist will ask are: what exactly will the property be like once it is completed? Are there many properties like that in the area? Does the research indicate that the area is about to become a local hotspot?