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  • Profile photo of caetcaet
    Participant
    @caet
    Join Date: 2007
    Post Count: 2
    December 14, 2011 - 4:28 am

    I've just completed an owner builder project. Two dwellings, a 4 bed 2 bath home and a detached 2 bedroom granny flat.Was it 'worth it' for us – Yes. Would I do it again (in 7 years ;)) Yes. Can't wait.

    I'm not a 'tradie' but have studied interior design and have already renovated 3 prior homes so have a fair level of basic building knowledge. I am also insanely organised. And I had worked with my builder/carpenter on previous projects.

    I work in an interior design firm so had access to skilled people which gave me the confidence to do it as well.

    Financially yes based on our budgets coming into the build, from 3 builders, we have done it cheaper. But it was also virtually a full time job for me (lucky I was on maternity leave).

    So it really depends on your level of experience in the building and project management arena, and the time you have to spend on site EVERYDAY.

    I have told friends absolutely NOT to do it as it would be a disaster for them.

    Profile photo of caetcaet
    Participant
    @caet
    Join Date: 2007
    Post Count: 2
    December 14, 2011 - 4:15 am

    Hi there,

    I recently built our new home under owner builder. I had a contract with a builder to take the build through to lock up stage. I managed the trades throughout the whole build, and oversaw the final fitout. I used owner builder insurance to safeguard us across the term of the project.

    I was financed under a construction loan. It was a tricky process to manage the cashflow. I would make progress claims almost weekly to ensure I had the money to pay people and keep the build running as fast as possible. The bank would pay the various trades directly for me IF the invoice was large enough that it wasn't reasonable for me to be managed from our cash account.

    Payments to various suppliers up to about 20k I had to manage from our cash account. Essentially I would pay everyone on a Monday, ensure I got the paid invoice reciept back IMMEDIATELY, and then submit the progress claim THE SAME DAY. It would take the bank between 4 – 10 days to reimburse.

    My suggestion would be to try and have a 'healthy' cash account to be able to manage the cycle without having delay payments.

    It's a lot of juggling but in the end it was worth the effort.

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