Construct Your Own Home as an Owner Builder

2010 March 8
by iggy

Two builders looking at house plansFor those who have the skills & funds to do so, building your own home from scratch can be a very rewarding experience. After all, it is the ultimate do it yourself job!  You can make your own floor plan, formulate your own designs, use the materials that you want and keep a close eye on the qualify of work.  You  can save on costs especially if you have access to suppliers that can provide you with your building materials directly at a discount, cutting out the middle man.

One of the biggest advantages is to choose your own contractors. When you hire a contract builder they will often select the tradespeople who give them the lowest quote. As a result, you end up having your house built by poorly trained apprentices! When you owner build your new home, you get to interview and select the contractors you do business with. Sure price is important, however it’s also important to have your home completed on time to a high standard. Defects and delays are often far more expensive and emotionally draining then the cost you may save by using a cheaper contractor.

The trouble with finance…

However, being an owner builder does have its drawbacks.  One of the main drawbacks is trying to get a loan to fund your project.  This is because Australian banks and other lenders see this type of home loan as too great of a risk, and are reluctant to lend out money to fund any construction project that does not have a fixed price building contract with a licensed builder. 

The main cause for this reluctance is that because you are both owner and builder you have complete control of the costs of construction.  Although this may be a good thing, it may also turn out badly especially when cost estimates and the actual cost of construction turn out to be very different figures.  This can happen when you change your mind about the specifications, fixtures, fittings or change design midway through construction. You may be certain that you will not have these problems, however the bank will not share your confidence!

Apply for a home loan

Fortunately there are a few banks and lending institutions out there who are willing to grant your owner builder home loan.  You no longer have to exert effort in finding the right lenders.  Speak to specialists in owner builder home loans such as the Home Loan Experts (Ph: 1300 889 743) and they can help you to get approved at a great interest rate.

Do you already own your land?

If you already own the vacant land that you intend to build on then you will need to refinance your land loan as part of the approval for the construction loan. This is a simple process whereby you provide six months worth of statements for your existing mortgage, and the new lender will contact your old lender and repay their debt when the construction loan is setup.

Can I afford my repayments while building?

While you are building your home you may be paying rent and the mortgage as well. In addition to this you may also have minor cashflow problems while waiting for your bank to release the next progress payment for the work that you have completed.

Don’t worry, the banks have solved this problem. You will normally make interest only repayments during the construction phase which will reduce your monthly outgoings during this difficult time. Once construction is complete then your repayments will switch to standard principal and interest repayments over the remaining loan term.

Learn more about the owner builder process

Building your own home isn’t something to be taken lightly. We strongly recommend that you take the time to find out more about the process and gain experience from people that you know who have done it before. We would also recommend that you read the Owner Builder Guide which will guide you through the entire process from vacant land to completion.

97 Responses leave one →
  1. August 26, 2015

    Then send the postcard to all of the addresses in your area,
    and try to draw customers in. With good habit and savings,
    you can be assured of having enough to start your own business.
    Clients do not look no matter whether you’ve a small or big budgeted communication service.

  2. September 5, 2015

    Banner ads typically include graphics and text which entice Internet
    users to click on the advertisement. With good habit and savings,
    you can be assured of having enough to start your own business.

    Before you do this, examine the publication online to ensure that its
    website is user friendly.

  3. September 6, 2015

    Yet, there are grants that are made for equipment and training.
    You can know all the ins and outs of business and can run a restaurant without fail;
    but would you know the first thing about installing the kitchen grills.
    When travelling, for instance, it would be possible
    to login to your accounting database and enter transactions on the road.

  4. September 8, 2015

    Yet, there are grants that are made for equipment
    and training. As with everything else, it is only the mindset of the entrepreneur that dictates the success
    and failure of a company. A customer is injured while using a
    product you sold and files a claim for indemnity.

  5. September 12, 2015

    Tax law about businesses in the USA is ever changing.

    If, on the other hand, you are not successful in paying your loans back, you are going to develop “bad credit. Before you do this, examine the publication online to ensure that its website is user friendly.

  6. September 14, 2015

    Yet, there are grants that are made for equipment and training.
    Without enough traffic, you will never have enough customers and
    this means you won’t be making enough money. When travelling, for instance, it would be possible to login to your
    accounting database and enter transactions on the road.

  7. September 14, 2015

    Tax law about businesses in the USA is ever changing.
    A lot of people have small business ideas that they
    often fail to put into practice either because they lack the money
    to make an investment or because the fear to lose everything.
    What you give away doesn’t have to be costly, but it must be valuable.

  8. September 21, 2015

    Then send the postcard to all of the addresses in your area, and try to draw customers in. You can know all the ins and outs of business and
    can run a restaurant without fail; but would you know the first thing about
    installing the kitchen grills. For clients, you can target neighborhoods,
    communities or even companies.

  9. September 21, 2015

    Yet, there are grants that are made for equipment and training.

    You can know all the ins and outs of business and can run a restaurant without fail;
    but would you know the first thing about installing the kitchen grills.
    Always choose a new account, and look for a specialized bank whenever possible.

  10. September 23, 2015

    Yet, there are grants that are made for equipment and training.
    A lot of people have small business ideas that they often fail to put into practice either because they lack the money to
    make an investment or because the fear to lose everything.
    Always choose a new account, and look for a specialized bank whenever possible.

  11. September 27, 2015

    The following are the benefits that you have to be aware of the most.
    As with everything else, it is only the mindset of the entrepreneur that dictates the success and failure of a company.
    Typically, this works well if we are involved in a solid networking and we reciprocate, by
    referring clients to those other businesses.

  12. September 28, 2015

    Tax law about businesses in the USA is ever changing.
    With good habit and savings, you can be assured of
    having enough to start your own business. A customer is injured while using a product you sold and files a claim
    for indemnity.

  13. October 2, 2015

    Look into their years of experience in managing small business accounts so that
    you can get professional advice on various financial matters.

    Platforms: Android, Blackberry, i – Phone, i – Pad, Windows Phone.
    Always choose a new account, and look for a specialized bank whenever possible.

  14. October 2, 2015

    Then send the postcard to all of the addresses in your area, and try to draw
    customers in. A lot of people have small business ideas that they often fail to put into practice either because they lack the money to make an investment or because the fear to lose everything.
    Always choose a new account, and look for a specialized bank whenever
    possible.

  15. October 5, 2015

    Look into their years of experience in managing small business accounts so that you can get professional advice on various financial matters.

    Make the process pain-free with debt collection software for a small business that automates this
    tedious process and adds to your company’s bottom line.
    Before you do this, examine the publication online to ensure that its website is user
    friendly.

  16. October 7, 2015

    Yet, there are grants that are made for equipment and training.
    A lot of people have small business ideas that they often fail to
    put into practice either because they lack the money to make an investment or because the fear to lose everything.

    For clients, you can target neighborhoods, communities
    or even companies.

  17. October 7, 2015

    Tax law about businesses in the USA is ever changing.
    If, on the other hand, you are not successful in paying your loans back, you are going to develop
    “bad credit. Before you do this, examine the publication online to ensure that its website is user friendly.

  18. October 12, 2015

    Tax law about businesses in the USA is ever changing.
    As with everything else, it is only the mindset of the entrepreneur that dictates the success and failure of a company.
    Clients do not look no matter whether you’ve a small or big budgeted
    communication service.

  19. October 30, 2015

    Then send the postcard to all of the addresses in your area,
    and try to draw customers in. You can know all the ins and
    outs of business and can run a restaurant without fail; but would you know the first thing about installing the kitchen grills.

    For clients, you can target neighborhoods, communities or even companies.

  20. October 30, 2015

    Look into their years of experience in managing small
    business accounts so that you can get professional advice on various financial
    matters. Further, amount of loan must be need-based, subject to ceiling of
    Rs 25,000 per borrower for purchase of machinery or equipment etc,
    and meeting working capital requirement of one operating cycle.
    For clients, you can target neighborhoods, communities or even companies.

  21. November 2, 2015

    The following are the benefits that you have to be aware
    of the most. With good habit and savings, you can be assured of having enough to start your own business.

    When travelling, for instance, it would be
    possible to login to your accounting database and enter transactions on the
    road.

  22. November 7, 2015

    The following are the benefits that you have to be aware of the most.
    Without enough traffic, you will never have enough
    customers and this means you won’t be making enough money.

    Always choose a new account, and look for a specialized bank whenever possible.

  23. November 10, 2015

    Banner ads typically include graphics and text which entice Internet users to click on the
    advertisement. When job offers do come and
    I’ll admit, some companies may fear hiring you because they fear
    a former owner being an employee, negotiate the best salary you can along with the best benefits you can for you and your family.
    Clients do not look no matter whether you’ve a small or
    big budgeted communication service.

  24. November 23, 2015

    If you’re educated (or seeking an education) you will probably find a ton of opportunity in a small town. Further,
    amount of loan must be need-based, subject to ceiling of
    Rs 25,000 per borrower for purchase of machinery or equipment etc,
    and meeting working capital requirement of one operating cycle.
    When travelling, for instance, it would be possible to login to your accounting database and enter
    transactions on the road.

  25. November 23, 2015

    Then send the postcard to all of the addresses in your
    area, and try to draw customers in. With good habit and savings, you can be assured of having enough to start
    your own business. Before you do this, examine the publication online to ensure that its website is user friendly.

  26. January 7, 2016

    The following are the benefits that you have to be aware of the most.
    A lot of people have small business ideas that they often fail to
    put into practice either because they lack the money to make an investment or because
    the fear to lose everything. Clients do not look no matter whether you’ve a small or big budgeted communication service.

  27. January 14, 2016

    Tax law about businesses in the USA is ever changing.
    As with everything else, it is only the mindset of the entrepreneur that dictates
    the success and failure of a company. When travelling, for instance, it would
    be possible to login to your accounting database and enter
    transactions on the road.

  28. January 19, 2016

    Tax law about businesses in the USA is ever changing.

    If, on the other hand, you are not successful in paying your loans back, you are going to
    develop “bad credit. Two: Increase in income – When you are able to increase your traffic to the business, you will easily be able to also increase your income.

  29. January 27, 2016

    If you’re educated (or seeking an education) you will probably find a ton of opportunity in a small town. You
    can know all the ins and outs of business and can run a restaurant without fail;
    but would you know the first thing about installing the kitchen grills.
    Clients do not look no matter whether you’ve a small or big budgeted communication service.

  30. January 27, 2016

    Banner ads typically include graphics and text which entice Internet users to
    click on the advertisement. Make the process pain-free with
    debt collection software for a small business that automates this tedious process
    and adds to your company’s bottom line. Before you do this, examine the publication online to ensure that its website
    is user friendly.

  31. February 3, 2016

    Yet, there are grants that are made for equipment and training.
    You can know all the ins and outs of business and can run a restaurant without fail;
    but would you know the first thing about installing the kitchen grills.
    Always choose a new account, and look for a specialized bank whenever possible.

  32. February 15, 2016

    If you’re educated (or seeking an education) you will probably find a ton of opportunity in a small town. Platforms:
    Android, Blackberry, i – Phone, i – Pad, Windows Phone.

    Clients do not look no matter whether you’ve a small
    or big budgeted communication service.

  33. March 6, 2016

    Then send the postcard to all of the addresses in your area, and try to draw customers in. With good habit and savings, you can be assured of having enough to
    start your own business. Always choose a new account, and look for a specialized bank whenever possible.

  34. April 1, 2016

    Banner ads typically include graphics and text which entice
    Internet users to click on the advertisement. If, on the other hand, you
    are not successful in paying your loans back, you are going
    to develop “bad credit. Typically, this works well if we are involved in a solid networking and we reciprocate, by referring clients to those other businesses.

  35. April 5, 2016

    Tax law about businesses in the USA is ever changing.

    A lot of people have small business ideas that they often fail
    to put into practice either because they lack the money to make an investment or because
    the fear to lose everything. Before you do this,
    examine the publication online to ensure that its website is user friendly.

  36. April 13, 2016

    Banner ads typically include graphics and text
    which entice Internet users to click on the advertisement.
    You can know all the ins and outs of business and can run a
    restaurant without fail; but would you know the first thing about
    installing the kitchen grills. Typically, this works well if we are involved in a
    solid networking and we reciprocate, by referring clients to those other businesses.

  37. April 13, 2016

    Yet, there are grants that are made for equipment and training.
    A lot of people have small business ideas that they often fail to put into practice either because they lack the money to
    make an investment or because the fear to lose everything.
    Always choose a new account, and look for a specialized bank whenever possible.

  38. April 15, 2016

    Look into their years of experience in managing small business accounts so that you can get professional advice on various
    financial matters. Platforms: Android, Blackberry, i – Phone, i –
    Pad, Windows Phone. Two: Increase in income – When you are able to increase your traffic to the business, you
    will easily be able to also increase your income.

  39. April 19, 2016

    If you’re educated (or seeking an education) you will probably find a
    ton of opportunity in a small town. If, on the
    other hand, you are not successful in paying
    your loans back, you are going to develop “bad credit. Always choose a new account, and look for a specialized bank whenever possible.

  40. April 21, 2016

    Banner ads typically include graphics and text which entice
    Internet users to click on the advertisement. When job offers do come and I’ll admit, some companies may fear hiring
    you because they fear a former owner being an employee, negotiate the
    best salary you can along with the best benefits you can for you and your family.
    When travelling, for instance, it would be possible to login to your accounting database and enter transactions on the road.

  41. May 2, 2016

    Look into their years of experience in managing small business
    accounts so that you can get professional advice
    on various financial matters. As with everything else, it is only
    the mindset of the entrepreneur that dictates the success and failure of
    a company. Selling the same things, to the same market, in the same way.

  42. May 17, 2016

    Look into their years of experience in managing small business accounts so that you can get professional advice on various financial matters.
    Make the process pain-free with debt collection software
    for a small business that automates this tedious process
    and adds to your company’s bottom line. Selling the
    same things, to the same market, in the same way.

  43. June 9, 2016

    Yet, there are grants that are made for equipment and training.
    When job offers do come and I’ll admit, some companies may fear hiring you because they
    fear a former owner being an employee, negotiate the
    best salary you can along with the best benefits you can for you
    and your family. Two: Increase in income – When you are able to
    increase your traffic to the business, you will
    easily be able to also increase your income.

  44. June 9, 2016

    Then send the postcard to all of the addresses in your area, and try to
    draw customers in. As with everything else, it is only the mindset
    of the entrepreneur that dictates the success and failure
    of a company. For clients, you can target neighborhoods,
    communities or even companies.

  45. September 6, 2016

    If you’re educated (or seeking an education) you will probably find a ton of opportunity in a small town. When job offers do come and I’ll admit,
    some companies may fear hiring you because they fear
    a former owner being an employee, negotiate the best salary you can along with the best benefits you can for you and your family.
    What you give away doesn’t have to be costly, but
    it must be valuable.

  46. October 3, 2016

    Yet, there are grants that are made for equipment and training.
    When job offers do come and I’ll admit, some companies may fear hiring you because they fear a
    former owner being an employee, negotiate the best salary you can along with the best benefits you can for you and
    your family. For clients, you can target
    neighborhoods, communities or even companies.

  47. October 26, 2016

    Banner ads typically include graphics and text
    which entice Internet users to click on the advertisement.

    Further, amount of loan must be need-based, subject to ceiling of Rs 25,000 per borrower for
    purchase of machinery or equipment etc, and meeting working capital requirement of one
    operating cycle. A customer is injured while using a product you sold and files
    a claim for indemnity.

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