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Building own House

Discussion in 'Development' started by Ash, 28th Mar, 2016.

  1. Ash

    Ash Well-Known Member

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    Hi All ,

    can someone suggest from experience if building own house in sydney is good idea rather than going to developers.

    I understand in need Owner builder license for that but if I build on my own will that be cost effective ?

    Also if anyone has build around 170 living area what do you thing will be built cost on own ?

    I can customize home as per my needs
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Why?
    Do you have any building experience eg. Trade background? Contacts?
    Do you have the time to devote to supervise, coordinate & project manage?
    Are you going to require finance?
     
  3. Ash

    Ash Well-Known Member

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    I dont have building experience but my father does. He will help me out in the process but his experience is overseas ....

    Yes i need finance ...i was thinking of working jointly with a consultant or peoject manager for the duratipn of project such as ditect built australia ...
     
  4. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Finance is PIA.
    Owner Builder Loans
     
    Last edited: 28th Mar, 2016
  5. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    I think I've seen only one couple ever successfully build their own home cheaper compared to a volume builder - and that's only because they build a new PPOR every year or two.

    Builder margins are low currently, so you're playing with very little fat to save. Then when factoring in the lack of trade contacts and volume pricing on materials, it's fairly normal for any build to come out more expensive.
     
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  6. datto

    datto Well-Known Member

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    I've seen others build their own home. You can't compete with project home for price for basic house.
     
  7. Chilliblue

    Chilliblue Well-Known Member

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    You can alter a project home for a lot less than designing and building your own
     
    Last edited: 28th Mar, 2016
  8. beachgurl

    beachgurl Well-Known Member

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    I know someone who is currently building their own home. They have engaged a mate of theirs to act as project manager so they can get finance more easily. They haven't even got the slab down yet and they're already arguing with their project manager about using the PM's recommended concretors or the guy they know who will offer them a better discount. I'm sure it will be a long and possibly expensive learning experience. They went down the self-builder path purely to save money.
     
  9. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I honestly wouldn't bother. I don't think its worth it, plus you have to weigh up the additional risk factors in building it yourself vs a company that builds hundreds all the time. And I seriously doubt you will come in cheaper than the builder. Too many nightmares that can eventuate along the way and costs can go up dramatically.
     
  10. Speede

    Speede Well-Known Member

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    Everything has risks. If you have a relatively flat block with minimal site works..you can build a custom home for $900-$1,000 sqm....it all depends on finishes.

    Project builders like Metricon,Wisdom,Eden,Clarendon are building for around $1350,$1,500...most with no driveway landscaping or fencing.
     
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  11. Ash

    Ash Well-Known Member

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    Thanks for your inputs ..

    Yes it will be challenging but what if we use services such as www.directbuild.com.au to help with managing project. This is only because of lack of experience.

    Also besides cost savings I am looking at learning development as plan is to do some small developments on my own as developer. So i think it will provide me with base learning ..for free
     
  12. bashworth

    bashworth Well-Known Member

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    I wouldn't call 6% free.
    Plus
    They might help you get a 'Trade Discount' but won't be able to get the discounts big builders get.
    You won't get the same availability of tradesmen which will slow your build.
    You will need to get plans drawn while the big builders use the same basic plan for perhaps 100 houses.
     
  13. Ash

    Ash Well-Known Member

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    Do you have any experience with them or similar co ?
     
  14. bashworth

    bashworth Well-Known Member

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    No experience with Direct Build or similar but I have had 3 houses built including designing one myself. I have spent a fair bit of time talking to people who have done an owner build.
    Even though I am a construction professional (Civil Engineer), and would love to owner build, I have come to the conclusion that the big builders standard or slightly revised project homes are very hard to beat on price as long as you avoid upgrades.
    About the only way you can build cheaper if you do a lot of the work yourself, charge zero for your time and don't upgrade.
    The fact that an an owner builder normally takes much longer than a builder means the finance costs during the build cost can wipe out materials and labour savings.
    I have also seen more than one marriage fail during an owner build project because every spare moment for 1-2 years is taken up with the build.

    For more info you can check out my anewhome blog
     
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  15. Ash

    Ash Well-Known Member

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    Thanks Excellent thoughts .. looking at your blog tells me about your knowledge and experience.. and I value that :)

    So this means if we take a base package from the builder and get the upgrades done on our own it will be better in terms of pricing ?
     
  16. bashworth

    bashworth Well-Known Member

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    Last house I got built was by Metricon the only significant additional cost upgrades I did were:
    • Extra power sockets
    • Added some doors to WIR and En-Suite
    • Added a few m of wall to make it a little less open plan
    • Had a proper back door rather than a patio door
    • Additional sized heating ducts so I could add refrigerated cooling to the ducted heating.
    Made some other changes such as reducing window sizes but at no additional cost
     
  17. datto

    datto Well-Known Member

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    ^^^^^^ yep.
     
  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    BOL

    ta

    rolf
     
  19. Ash

    Ash Well-Known Member

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    @Rolf Latham I did not understood this one :(

    @bashworth when you say ..

    ==> Additional sized heating ducts so I could add refrigerated cooling to the ducted heating.

    Does this means you opted for Ducted AC but with additional ducts/zones ?

    Also if I understood correctly this means Metricon Base Home Package + some free seasonal upgrades which they do + your own customization correct ?
     
  20. dianab

    dianab Member

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    Hi, I built my parents home (2 storey plus underground basement) with no experience behind me at the age of 20 ( i was studying to be pastry chef ). At the time i had night shift work but during the day i was 100% devoted and spent alot of time researching.
    I was lucky as all the tradies i hired would direct me with what is the next step.
    However its not a walk in the park and its very stressful.

    What area are you building in sydney?