How being an Owner Builder can help save money
People often have ask this question:
“Exactly how much do I save building my own house?”
This is a rather crucial question and can prove to be of great importance in the long run. If you are in a quandary about whether you should build your own home or let someone else do the work for you, getting a rough idea of costs upfront may help.
The first major saving comes from not having to pay the builder's margin.
It means you become the contractor managing the entire project including budgeting, planning, hiring trades and suppliers, scheduling, quality checks etc.
You can achieve even greater savings by doing some of the physical labour yourself. This is referred to as ‘sweat equity'. However you need to have some ability to complete the work to the required standards.
It is possible, though not necessary for owner builders to complete part of the work themselves. Owner building advocates claim that up to 40% of the total cost can be saved by building on your own.
In Australia, owner builders are often referred to as self-builders and they take the control of designing and building for their residential project.
Building one’s own home is quite demanding though, and requires time, patience and skill.
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