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Should
you become an owner-builder? |
There is certainly something to be said for kicking back on the DIY balcony, beer in hand and admiring the view, knowing that you built the house yourself.
 Apart from the personal satisfaction of completing your home as an owner-builder, you may have saved yourself some bucks and picked up some handy extra trade skills along the way.
But the simple fact is: being an owner-builder is not an easy task. It will cost you energy, frustration and - if you don't get it right - a lot of money. If you are considering building your own house you need to seriously ask yourself whether you have the skills and time available to complete the necessary work.
Consider the following before you launch into DIY:
Are you prepared to be responsible for the project?
An owner-builder is anyone who manages their own residential building project and looks after the co-ordinating and contracting roles that are normally undertaken by the builder. That means if you plan on being an owner-builder, there are a number of responsibilities you need to be prepared to take on board.
Depending on your state, you will probably need an owner-builder permit before you start building your house. There is often a fee associated with this and you may also need to complete an owner-builder training course that will give you basic skills and awareness in a number of essential areas.
Subcontractors
If you are building your own house you cannot avoid using subcontractors. Even if you intend to do most of the work yourself there are certain jobs such as plumbing and electrical wiring which by law must be completed by licensed professionals.
This effectively turns you into an employer and you need to be aware of all the associated issues. For instance, you will need to check out GST and PAYG regulations in relation to payment. You also need to organise workers compensation, a long service levy, health and safety levy, and even a training levy.
As you are in charge of the whole project, you need to manage each of the subcontractors working under you. If you have a problem, you must deal with the subcontractors directly. On the other hand, if you employ a builder you are relieved of this responsibility.
Health and safety
On a construction site there is a very real risk of injury, and if you are an owner-builder you must familiarise yourself with occupational health and safety regulations. As you are managing the building project, it is your responsibility to enforce these regulations and protect the people working on site.
Licensed building professionals understand the health and safety issues associated with working on a building site and know how to ensure they have a safe working environment.
How much will I save?
The main reason people choose to build themselves is to save money. The reality is that an owner-builder who is not part of the industry usually pays significantly more for materials than a building professional. Many professionals work on very low margins and use their bulk buying power to purchase materials at much cheaper prices. And of course they don't need to buy or hire their tools.
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