Second owner builder build within 5 years? NSW

Hi All

The misses and myself recently completed an owner builder house project in NSW for us to live in. We decided to have a crack at owner building due to not being happy with project builders designs and we wanted to try to do it cheaper.


We actually enjoyed the experience so much we have been discussing about buying a block of land and doing another build to see if we can make a profit.

I’ve had some look into this but it seems because we have already been granted an owners builder license we are excluded from being issued another owner builders license for 5 years.

My question is there any other way we can do a second owner builder build for profit? I’ve researched getting a builders license but that seems impossible to get given our backgrounds and the requirements needed to obtain a builders license.

Hi juken

The term "owner builder" is just that. It's designed so a person can build their own house that they will live in.

The time restraints around OB licences are designed to prevent people becoming builders whilst using OB licences. There are reasons for this.

I've OB twice (about 10 years ago and last year) and will probably be getting my builder reg later this year, but if you aren't in the building industry it can be a challenge to qualify.

I would rather recommend finding the right builder and agreeing with him to employ him as "off hands" PM under cost plus contract and build under his license. He could provide you with general overlook and advice and may be some supervision where needed, may be some of his tradies, while you organise most of the stuff by yourself eg. using something like Framework software.

This will be the best compromise.

You can't do that, that's classed as license lending.

It won't be lending, considering that the builder is still involved in the project and, therefore, compensated accordingly.
The actual level of the involvement is somewhat arbitrary?

No it will be license lending, in WA as soon as an owner organises a trade for The builder to pay its considered license lending. I was involved in a case from the old building registration board days, this legislation hasn't changed

That is out dated
The trades become nominated subcontractors and are paid by the client.
The builder is paid insurances and a fee.
Juken Shop around there are plenty of builders licences for hire out there
I suggest you have all the Design, Building and engineering data, proofs, costs, etc, beforehand
and shop around.
Cheers
Chris

It might be out of date but it's the law

Can I get an idea/reference to the law?

I have came over only one case description so far which has still held builder liable.

It is not saying anything about "license lending" being a law.


http://lclawyers.com.au/building-warranties-and-the-perils-of-license-lending-does-this-make-a-registered-domestic-builder-the-contracted-builder/

https://hia.com.au/regional-news/tas/licence-lending#

Okay, so it says:

"A licensed builder should only be allowing themselves to be identified as the builder in a building approval if they are engaged and paid to manage and carry out the building work authorised by the building approval"

Which is clear enough, the builder should have full control on the building process carried over.

Builders Services Registration Act 2011, Division 2 - Prohibitions in respect to carrying out prescribed building services

I guess you will always get someone who thinks it's an easy $$$ to let someone use their licence but it can really come back to bite them and their licence on the bum.

The OP sounds like they OB (project managed) a house once and now think that it looks like a good way to make some money, and that's fair enough, we all want to make money. But the fact that they know they would never actually get a building licence tells me that they are probably not experienced in the building industry and one smooth build doesn't mean any future build will go that way and without troubles.

That is exactly the scenario that the below site is talking about and the reason any licenced builder would and should run away from lending their licence.

https://www.cornwalls.com.au/licence-to ... you-think/

Site supervisors should be also licensed or this is not a requirement? E.g. can a builder involve OB in the capacity of a site supervisor?

There are no licensing or qualification requirements for site supervisors. They operate under the umbrella of the the builders licence.

Well done! would you be willing to discuss some of your experiences as OB? we might be leaning that way ourselves. did you use brick or brickveneer? regards

just put them in each of your names and you can as a couple do 2 every 5 years..

"just put them in each of your names and you can as a couple do 2 every 5 years.."

Nope , you can't do that either if the property is in both your names or if you decide to buy two properties as you suggest in different names you could be caught out by the ATO in either capital gains or stamp duty.

Stewie

yes you can if you do them non concurrently and actually live in them