Forums / Property Investing / Value Adding / Renos as an owner builder

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  • Profile photo of PGDPGD
    Member
    @pgd
    Join Date: 2010
    Post Count: 28

    Hi all,

    Performing renos as an owner builder I expect would reduce the cost of using a builder.

    However, does the time limitations of being an owner builder (ie. cannot build again for another 6 years) kill this tactic?

    Mario

    Profile photo of TrevTrev
    Member
    @trev
    Join Date: 2006
    Post Count: 39

    The saving in not using a builder essentially comes from not paying the builder's profit margin.  This could be offset by the saving in buying materials at trade prices (provided the builder passes on those savings) and in better financial control of subcontractor prices. 
    I'm not certain, but I think the 6 year rule that applies to owner-builder work is unique to WA.  In other states that period is less.  You need (as an owner-builder) to provide  warranty insurance to the purchaser if selling your owner-built property within 6 years.
    Personally I have never regretted using an experienced builder for a renovation or new house.  Their expertise is worth paying for, and the job inevitably gets done faster than I could do it (and time means money).

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,840

    the ob restrictions vary between states, nsw is 6 yrs as well. the cost of doing ob & perceived savings are more often outweighed by the efficiencies of using a builder.
    You may be able to reduce this timeframe restriction by having the other owner take up the ob licence.

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