# Forum More Stuff Owner Builders Forum  how do I build and finance my kit home?

## Paternoster

G´day everyone
I have read here and there a little about owner building and I have to admit that I am a little confused...how does it precisely work to build your own home?How many stages are there and how does it work,to time your financing to make it bearable to have still to pay rent and yet to start paying a mortgage?As far as I was able to learn,it seems that banks have muscled up on regulations regarding owner building and are not as easy anymore to finance them.
Please enlighten me!

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## barney118

Mate, you need to start with your local authorities on OB, here in Australia each state has different requirements. Basically we attend a 2 day course at TAFE (education place) and pay some fees to govt dept to get a permit to owner build. Apply to local govt for permit which requires specific plans and details of what you are building. By this stage you already could have forked out $10k in fees to start the ball rolling. 
The other part of your question "banks" yes they hate the OB because we are considered a risk of not finishing the job, spending on something else, no insurances etc (which is another argument). The banks can value your place to whatever they want, basically they assume you will fail and they want to recover what you owe them so thats as good as the valuation gets regardless of how much you might save in labour costs, so you need to include these in your estimates to the bank and that way the valuation will come back better.

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## Paternoster

So,if the bank agrees,they pay you basically the whole amount in "one shot"?I contacted a kit home company a while ago and they had a "road map" from start to finish.It was talking about a step by step increasing financial burden (which was already somewhat scary,considered renting cost in Albany,WA) but than I read about others and their experience,juggling big numbers and didn´t make it sound like the financial plan could be done as previous said.
Another thing would be,that I have to do most of my work myself or otherwise I would be better off just buying something ready (with all it´s downs).I will have roughly $60000 to put down on a mortgage and I have plenty experience in renovating houses (down to the studs) as I did that with two houses here. 
That´s my house in Bienfait,after I finished it  
From the street  
My house in Estevan (which I still ow and sell right now) right after I bought it in 2008:  
Extending the roof with 2X10 to 14" in order to be able to install a 12" insulation (R40)  
Gutting of the second floor and installation of new separation walls (the old ones were done improper and room sizes were odd as well) including re wiring etc   
The "kitchen" (I wouldn´t really have called it that)  
That was made after I installed new kitchen cabinets,but hadn´t finished the walls yet.  
So,I am well prepared to tackle pretty much every job that might come at me,only limitation would be regulations (and of course I wouldn´t touch that).How does it work with electrical wiring?Here,you get a permit and have (after being done with it) the building inspector check and pass your job.Is there something similar in OZ too? 
Cheers

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## Wavenut

Paternoster - my advice would be to look into the insurance requirements as alot of people in my area are now getting stuck trying to sell their homes within the six years post occupancy certificate issue. Whats happening is the banks are not lending enough to the purchasers on the basis that it was an owner builders construction and the original owner builders are responsible for holding the insurance to cover anything wrong with the house for 6 years. There is nothing stopping the original owner builders canceling their insurance post sale and therefore the banks are not lending to anyone within the 6 year post completion.

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## Bloss

Good to look at OP's location - a few issues that Aussies might not be across . . . :Rolleyes:

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## Paternoster

> Good to look at OP's location - a few issues that Aussies might not be across . . .

  Well,as I stated,I (or we as family) intend to move to Australia by the end of the year.As for our options:Albany,WA has (as almost every place in OZ right now) a housing boom going on,making buying a house a very difficult thing to do.Houses in lockyer are cheaper (3 BR for around $200K),but the location isn´t as desirable.Houses in Yakamia are prohibitively expensive,running easily at $250 to $350K ,making it impossible to own one as starter home.
What p*es me off in particular is,that at $200K you still get just a fixer-upper,looking at 50 year old kitchen cabinets or/and out dated bathroom,windows etc so one has to spend another **K to fix it up to standard.
That´s where the owner building comes into play:if I can own a house for nearly the same amount,but everything is new and won´t give me trouble for the next 30 odd years...what would you do? 
Cheers from Canada (still)

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## Bloss

Ah - sorry - missed that moving bit! If you are a handy DIYer as you seem to be it will generally still be better value for you to buy an older house and gradually DIY the renovation than to buy new. So long so you understand the impact on your life and your family when doing so. Really a personal choice - at my stage of life I'm more likely to build new, but that's mainly because a) I can afford to, and b) because the next house I build for myself will be the last one and will be at least zero energy or energy positive ie: will export more energy than it uses (including its embedded energy). But that's just me - different strokes as they say . . .

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## Paternoster

OK,no trouble (I guess I should have repeated my statement regarding my ambition to move to OZ in this post as well),
so,from your point of view,it is more advisable to buy rather than to build?That does match what others have stated so far in other posts.I guess I will take your advise and safe myself the trouble related to OB a house.As far as renovations go,I have to say my wife isn´t very keen about them,but would rather accept that than to live in a camper van for x amount of months.
Thanks for the advise 
Cheers

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