Deciding to build a new home or embarking on a significant home renovation is an exciting time, but one which accompanies a lot of decision-making. For some, one of the first decisions they encounter is whether to take the steps to become an owner builder or to enlist the services of a professional builder.
Maybe you’re a dab hand with the tools, or you’re keen to keep building costs down as much as possible by doing some of the work and project management yourself. Whatever the reason, it’s important to consider all aspects of this option to ensure you are well-prepared and have a realistic idea of what becoming an owner builder involves.
Owner builder requirements
Owner builders don’t necessarily do all the work themselves, but they are responsible for overseeing and managing the complete building or renovation project on their land.
Other points to consider include:
Owner builders are not only responsible for the building while the project is being carried out but also for up to 6 ½ years after project completion.
Some banks are hesitant to lend to owner builders, especially those with little to no experience. This could be a very important factor when considering your finance options.*
As an owner builder, you’re limited to one project every 6 years.
Home builders can’t access Home Warranty insurance cover. Home Warranty insurance provides protection for the homeowner in the event a contractor fails to complete work, the work is defective, and they don’t fix it, or the building suffers from subsidence.
Using a professional builder might cost a bit more, but there are so many benefits which provide extra value.
If you’re planning a building project on the Gold Coast, and you’d like more information on how a professional builder can ensure the success and smooth running of your project, contact the experienced builders at Crib Group today.
*This information is of a general nature and not designed to replace professional financial advice.
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