Owner builder in South Australia

Discussion in 'Investment Strategy' started by Ben Duncombe, 19th Feb, 2018.

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  1. Ben Duncombe

    Ben Duncombe New Member

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    Adelaide
    Hi All!

    just wondering what it takes to be an owner builder in South Australia?
    I'm in the building industry and work very closely with all types of trades as we currently own property and do small renovations with in your business currently but we would like to expand our horizons and start building our own homes using qualified trades. Is there any advice as to how to get through council or any issues you can see arising as an owner builder?
     
    Ben Duncombe, 19th Feb, 2018
    #1
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    D.T., 19th Feb, 2018
    #2
    Perthguy likes this.
  3. Brady

    Brady Well-Known Member

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    Brady, 19th Feb, 2018
    #3
  4. sash

    sash Well-Known Member

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    Yep...and most brokers would not know a brass wazoo.....about this...
     
    sash, 19th Feb, 2018
    #4
  5. Corey Batt

    Corey Batt Well-Known Member

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    Finance is the main hurdle and I've seen very a large amount of people who said they want to owner build because:

    • they work in the building industry
    • have mates who can help them
    • they're a tradie and can 'do it cheaper'
    The reality is the building industry in SA is fairly competitive due to the large number of builders fighting over work. The big kicker is the volume buying power of volume builders vs owner builders - the purchase costs will eat into your margins at a level that any wage savings may not be worth it. Just some food for thought.

    Lending wise - reduced LVR's, not all lenders will touch these deals etc. Not the end of the world if you have some cash behind you and meet all the req's - but you just can't walk into it at a 95% LVR and a back of envelope price list.
     
    Corey Batt, 21st Feb, 2018
    #5