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. November 30, 2014

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  2. January 28, 2015

    Or, perhaps you’re one of those students who desires a challenge, or even a
    good addition to your résumé for Grad school. As with everything else, it is only the mindset of the entrepreneur that dictates the success and failure of a company.
    What you give away doesn’t have to be costly, but it must
    be valuable.

  3. January 31, 2015

    Then send the postcard to all of the addresses in your area, and try to draw
    customers in. 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.

  4. February 2, 2015

    Banner ads typically include graphics and text which entice Internet
    users to click on the advertisement. As with everything else, it is only the mindset of the entrepreneur that dictates
    the success and failure of a company. Always choose a new account, and
    look for a specialized bank whenever possible.

  5. February 5, 2015

    The following are the benefits that you have to be aware
    of the most. Platforms: Android, Blackberry, i – Phone, i – Pad,
    Windows Phone. Before you do this, examine the publication online to ensure
    that its website is user friendly.

  6. February 5, 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. When travelling, for instance, it
    would be possible to login to your accounting database and enter transactions
    on the road.

  7. February 9, 2015

    Then send the postcard to all of the addresses in your area, and try to
    draw customers in. 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.

  8. February 10, 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. Before you do this, examine the publication online to ensure
    that its website is user friendly.

  9. February 24, 2015

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

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

  10. February 25, 2015

    Or, perhaps you’re one of those students who desires a challenge, or even a good addition to your résumé for
    Grad school. 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. Before you do this, examine the publication online to ensure that its website is user friendly.

  11. March 2, 2015

    The following are the benefits that you have to be aware of the most.
    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.
    Selling the same things, to the same market, in the same way.

  12. March 4, 2015

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

  13. March 4, 2015

    If you’re educated (or seeking an education)
    you will probably find a ton of opportunity in a small town. 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.

  14. March 10, 2015

    Tax law about businesses in the USA is ever changing.
    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.
    Before you do this, examine the publication online
    to ensure that its website is user friendly.

  15. March 12, 2015

    Then send the postcard to all of the addresses in your
    area, and try to draw customers in. 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.

  16. March 13, 2015

    Look into their years of experience in managing small business accounts so that you can get professional
    advice on various financial matters. Without enough traffic, you will never have enough customers and this means you won’t be making enough money.
    For clients, you can target neighborhoods, communities or even companies.

  17. March 16, 2015

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

  18. March 20, 2015

    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.

    Typically, this works well if we are involved in a solid
    networking and we reciprocate, by referring clients to those other businesses.

  19. March 27, 2015

    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.
    A customer is injured while using a product
    you sold and files a claim for indemnity.

  20. April 1, 2015

    Or, perhaps you’re one of those students who desires a challenge,
    or even a good addition to your résumé for Grad school.

    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.

    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.

  21. April 3, 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.

  22. April 15, 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.

  23. May 1, 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. Selling the same things,
    to the same market, in the same way.

  24. May 1, 2015

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

  25. May 5, 2015

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

  26. May 11, 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. Selling the same things,
    to the same market, in the same way.

  27. May 11, 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. 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.

  28. May 17, 2015

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

  29. May 18, 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.
    Always choose a new account, and look for a specialized bank whenever possible.

  30. May 26, 2015

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

  31. May 26, 2015

    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.

    Selling the same things, to the same market, in the same way.

  32. May 28, 2015

    Look into their years of experience in managing small business accounts so
    that you can get professional advice on various financial matters.
    Without enough traffic, you will never have enough customers and
    this means you won’t be making enough money.

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

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

  34. June 25, 2015

    Banner ads typically include graphics and text which entice Internet users to click on the advertisement.
    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. When travelling,
    for instance, it would be possible to login to your accounting database and enter transactions
    on the road.

  35. July 1, 2015

    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. A customer is injured while using a product
    you sold and files a claim for indemnity.

  36. July 6, 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.
    For clients, you can target neighborhoods, communities or even companies.

  37. July 7, 2015

    Tax law about businesses in the USA is ever changing.
    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.

  38. July 9, 2015

    Or, perhaps you’re one of those students who desires a challenge, or even a good addition to your résumé for Grad school.
    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. July 10, 2015

    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.
    Typically, this works well if we are involved in a solid networking
    and we reciprocate, by referring clients to those
    other businesses.

  40. July 11, 2015

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

  41. July 20, 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.
    Clients do not look no matter whether you’ve a small or big budgeted communication service.

  42. July 20, 2015

    Tax law about businesses in the USA is ever changing.

    Without enough traffic, you will never have enough customers and this means
    you won’t be making enough money. What you give
    away doesn’t have to be costly, but it must be valuable.

  43. July 21, 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. When travelling, for instance,
    it would be possible to login to your accounting
    database and enter transactions on the road.

  44. July 21, 2015

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

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

  45. August 3, 2015

    If you’re educated (or seeking an education) you will probably find a ton of opportunity in a small town. Without
    enough traffic, you will never have enough customers and this means you won’t be making enough
    money. Before you do this, examine the publication online to
    ensure that its website is user friendly.

  46. August 4, 2015

    If you’re educated (or seeking an education) you will probably find a
    ton of opportunity in a small town. Without enough traffic, you will never have enough customers and this means you won’t be making enough money.
    Typically, this works well if we are involved in a solid networking and
    we reciprocate, by referring clients to those other businesses.

  47. August 8, 2015

    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. 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.

  48. August 20, 2015

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

  49. August 22, 2015

    Or, perhaps you’re one of those students who desires a challenge, or even a good addition to your résumé for Grad school.
    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.

  50. August 25, 2015

    Or, perhaps you’re one of those students
    who desires a challenge, or even a good addition to
    your résumé for Grad school. With good habit and savings, you can be assured of having
    enough to start your own business. For clients, you can target neighborhoods, communities or even companies.

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