All Topics / Help Needed! / Owner builder / licensed builder

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  • Profile photo of waynel2waynel2
    Member
    @waynel2
    Join Date: 2004
    Post Count: 311
    March 9, 2009 - 11:11 am

    Hi All,

    It's been a while since I've put up a post.  Hope all is doing well:)

    I've got a question regarding owner building / becoming a licensed builder. 

    I'm currently working full time and over the last couple of months have been considering dropping work back to 3 days a week to start up in the building game.

    My plan is to build new house and land packages then sell them off to potential buyers.  I have no mortgage (house value $450k) so I'm hoping I won't have problems getting the finance – however I was wondering what would be the best way to go about this.

    Ideally I would like to spend 3 days a week working, then the other 2 days a week building property.  I only plan to build one property a year then sell the property once it's complete.

    I believe to do the above I would have to become a licensed builder due to the limitations of the being an Owner builder – would this be correct?  Or should I perhaps do the first building as Owner Builder then look at getting my license after that?

    It would be great to hear from anyone that has has gone down this track – especially if they live in WA:)?

    cheers all

    Wayne

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    March 9, 2009 - 12:42 pm

    Wayne, you may be required to do a short course to get your owner builder licence so you may need to investigate this. As you point out, you can do one project as an owner-builder. If you are capable, it may pay to start doing your Cert IV in building whilst you are doing your first project, that way, you will have your licence by the time you finish the first project and can continue on working under your own licence.

    If you already have a trade licence, you may only be required to do a few extra subjects to get your builder's licence (check out TAFE WA, Housing industry Assoc or the WA Master Builders Assoc).

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 9, 2009 - 12:54 pm

    Wayne

    Dont want to be the bearer of bad news but in todays climate financing such a strategy will not be as easy as you think.

    If you use a Line of Credit (and this will be the cheapest way depending on how many homes you intend to build) secured on your PPOR you will need to:

    1) Show 2 years self employed figures and Personal Tax returns.
    2) Provide evidence where the funds wil be used. Business purposes will not be acceptable by most lenders.

    There are a couple of ways around it and a good mortgage broker wouldbe able to show you how but not as easy as you would think in the current market place.

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    March 9, 2009 - 1:13 pm

    I looked into this in NSW a few years ago. Found out that owner builders permits are only issued to people building a home that is to be owner occupied and that you could only receive one permit every 5 years. You may have to do one and then get your spouse to do one and see how it goes.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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