This question, along with – can an owner builder build a duplex – comes up quite often and the short, straight to the point answer is no!
HOWEVER.
It's a perfect example of when you should contact your state government body that issues owner builder permits.
WHY?
Because the rules for owner building differ by state and there may be exceptions to the rule about building townhouses (or a duplex) as an owner builder. For example, if you think about the current housing crisis in Australia, could building multiple dwellings prove to be an opportunity to support an industry in crisis?
If you are fortunate enough to get an exception to the rule, keep reading as this article will highlight everything you should consider when planning a townhouse build.
Even if you don’t end up doing it as an owner builder, it’s still a great guide!
Why can't an Owner Builder Build a Townhouse (or duplex)?
First let's understand why an owner builder can't build a townhouse or duplex.
It pretty much comes down to the ‘can do' and ‘cannot do' rules of owner building. Like we said, the rules do differ by state but as a general guide here's a few of the rules (provided only as an example, you need to check with your state government body):
As an owner builder, you can:
- build a new home
- renovate, alter or extend an existing home
- build a garage, carport or residential shed
- build a swimming pool for residential use
- build a pergola or entertainment area for residential use
As an owner builder, you cannot:
- build or renovate multiple dwellings
- carry out work such as electrical, plumbing, draining unless you have a licence
- build commercial or industrial buildings (e.g. shops, industrial sheds, farm buildings)
- do any work not stated in the permit conditions
Remember, there can be more than one way to skin a cat, check out this Australian business that believes you can build townhouses/duplexes as an owner builder!
Let's get into what you should consider if planning on building townhouses.
1. Create a clear plan of action
Start with a clear plan of attack. This plan needs to be comprehensive and ideally should be broken into stages and smaller tasks. There is a lot to organise, and if you’re new to building, there are probably things you don’t even know you need to organise.
Everybody plans differently, and there are many tools available that can help you break larger goals into smaller tasks.
Essentially, you need a timeline of what actions you need to take, and when.
2. Choosing the right location
The next step is choosing the right location for your townhouse build, and this is where you might think differently whether you’re an investor or intend to live in the townhouse. Most importantly, the location needs to suit your needs and lifestyle. Consider things such as local amenities, schools, public transport and whatever else is most important to you.
Lifestyle isn’t the only consideration though, because you should aways see building a townhouse as an investment. While you intend to live in the home now, you may want to sell one day. Building in a growth area is likely to see your property’s value increase over time. However, building in a bad area can damage your investment in the long term.
So, research your locations thoroughly to ensure your property won’t lose value.
3. Local regulations and zoning laws
Once you’ve chosen your location, you need to familiarise yourself with local regulations. Gaining building approval (BA) or development approval (DA) is a necessary step for any townhouse build, and that means your plans need to comply with local laws. You’ll need to submit detailed information to the council before approvals are issued, so understanding the local laws is crucial.
By designing your home to meet council guidelines in the first instance, you can also save money. For example, if your plans are rejected by the council, you’ll need to pay your architect or designer to amend them.
This costs money and also delays construction, potentially complicating your entire schedule.
4. Set yourself a clear budget
You should already have an overall budget in mind, but you need to keep extra tight reins on expenditure. To do this, you should assign portions of the budget for specific costs.
How detailed you go is completely up to you, but at the very least, you should identify all known costs, such as the land purchase price. As you design and plan, you’ll gain more information regarding the cost of materials, trades labour and more. Wherever possible, seek fixed price quotes and continually monitor your budget.
Also, your budget should have funds set aside for contingencies. Even experienced builders run into budget issues at times, so if you are building as an owner builder, expect and plan for a few surprises or expenses along the way. A contingency fund ensures you don’t get stuck with a half-finished townhouse and no money to complete it.
5. Develop a network of trusted trade professionals
As we mentioned, you’ll need to manage all the tradespeople needed for the job. If you have a trade yourself, you can certainly save money by doing a lot of the hands-on work. But most owner builders still need a few experts to help them along the way. For example, only a licensed electrician can do the electrical work by law.
Once you’ve got a reliable team of tradespeople around you, the entire construction process runs so much more smoothly.
6. Consider sustainable, energy-efficient house designs
Over the years, the building industry, and society in general, have learned a lot about sustainability and energy efficiency. You can save money during the building process by sourcing sustainably grown materials, and many owner builders even find ways to use recycled materials. But it’s not just about the materials you use.
Skilled townhouse designers and architects know how to design for energy efficiency. Using natural light, ensuring good airflow, solar installations and several other techniques are all at your disposal when designing for efficiency.
Energy-efficient house designs save you plenty of money long-term.
7. Seek expert help when needed
The steps we’ve outlined above are simply to help you get ready for the construction process. In reality, the planning process needs to be incredibly detailed, with far more to consider than just the key points we’ve discussed here
Throughout the entire planning and construction process, you’ll have a lot to manage and it can get stressful. So, don’t be afraid to seek expert help when you need it. There are plenty of resources available to help you through, and countless building industry professionals you can call on.
The more you can do for yourself as an owner builder, the more money you save. But if there’s a problem you simply can’t fix yourself, paying an expert is far better than compromising the integrity and quality of your build.
