Can you afford it? - Owner Builder Club
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Can you afford it?


This is where many Owner Builders get caught out. Understanding what you can afford BEFORE anything else seems obvious but it’s not.

The first thing you need to understand is how much building a house actually costs. There are average construction costs per square metre you can use as a guide (refer to the link below) but you must do your research. Visit display homes and ask questions; speak to those in the building industry; and friends who have built a house.

The reason why people choose to become Owner Builders is because of the potential cost savings (and the thrill of saying, I did that).

Once you have an idea of construction costs, the next thing you need to think about is financing your project. Here are a few key points you need to know about financing:

  1. If you require finance, Owner Builders can only borrow up to 60% of the build cost versus 90% to 95% if going through a Registered Builder.
  2. You need additional cash in the bank to the tune of 20% plus a contingency fund of 20%. It’s possible to use equity in the land (if you have already purchased a block of land).
  3. You need to use your cash first and once drawn down, that’s when the bank will make progress payments for the remainder of the costs (at the end of the    remainder stages).
  4. Banks want detail and LOADS of it. This is something The Owner Builder Club can help you with. We’ve developed a Free Budget Planner to get you on your  merry way. CLICK HERE to get the FREE Budget Planner!

Also check out the additional links below that will provide you with even greater information. We strongly encourage you to follow both links.

If going down the Owner Builder path is not for you, there is absolutely no reason why you can’t be a part of the build process alongside a registered builder. Food for thought.


Additional links:

Start planning your budget with the help of our free Budget Planner – email us

Learn about average cost of construction – here.

Learn more about the Finance – here.