How to get an Owner Builder Permit in NSW

Introduction:

You need an owner builder permit if the work you are supervising or carrying out yourself crosses an expenditure beyond $10,000 and if you are not a licensed builder. 

You can apply for an owner builder permit under the following circumstances:

• You should be 18 years and above. 
• You have to be the owner or the joint owner of the land you wish to work on. 
• You should hold a Council Development Application approval number or a Complying Development approval number. 

You can apply online as well as in person at a service centre. 

Let us now talk about how one can apply for an owner builder license in NSW:

Online:

• Initially, you have to answer a number of eligibility questions. 
• When the screen shows that you’re eligible enough to get your very own owner builder permit, select the kind of application you want. This kind varies as per the type of land you own. 
• Now, you can log in to your MyServiceNSW account. You can also register yourself there. 
• It is very essential to complete every section of the application you’ve selected. Do so with utmost care. 
• You shall come across questions that help in the verification of your identity. Documents that verify your Australian identity will be needed. 
• The person looking forward for an owner builder permit needs to be fair and transparent when it comes to the documentation work. 
• The allied parties you work with should be mentioned as well. Keep in mind, that the parties should be recognized. 
• Documents need to be scanned and attached. All of them. 
• It is also essential to accept all the terms and conditions and declaration documents. 
• When everything is done and accepted, you can then proceed towards the payments details. 

In person:

When applying in person, you:

• Need to carefully read and get a note of the Owner Builder self assessment tool. 
• Honestly and fairly answer the eligibility questions so that you can move further. 
• Once you get checked for your eligibility, download the form related to your land and fill in the required information. 
• Collect the necessary requirements and documentation and then, book an appointment with the service centre and duly submit your documents at the service centre.

Benefits of Owner Builder Insurances in Australia

As an owner builder, you are responsible for the managing construction or renovation of your home. You will have the pleasure of successfully renovating the home in the way you like. You will also have to face a set of risks and responsibilities. But you can avoid risks by buying a comprehensive owner builder insurance.

As the owner builder in Australia, you are the primary contractor, responsible for appropriate cover. So it is important for you to choose the insurance of construction, which takes care of employees and possible site damages. Select the owner builder insurance in Australia which provides the best protection you need during the construction process. The insurance must be taken before the construction begins.

There are many benefits of owner builder insurance

• Without the site insurance, you may lose the home and may have to pay mortgage too.

• The insurance can prevent you from the effects of many potential liabilities, risks and the exposures when managing building work at the construction site. 

• Prevention includes the damage to on-site accidents, construction materials delivered, as well as the value of the progressive work completed. 

• Insurance companies give proper protection for you in case the workers get injured, killed or die due to any mishaps or the accident on your site. Insurance companies will provide adequate protection and provide the peace of mind, the income protection, and safety, keep you secure, and provide the real benefits.

• Owner Builder Personal Accident and Volunteer Workers provide protection for you and other unpaid workers in case these workers injure themselves and are unable to attend the paid employment. By organizing this type of insurance, you are serving to compensate family, friends and you.

• Construction insurance protects the owner builder during the building process, including theft, fire, damage, water and wind damage.

Building Regulations for Owner Builders in Australia

An owner-builder is one who takes responsibility for home building work carried out on their own land.He obtains building permits, supervises the building work, and makes sure the work meets building regulations and standards.

As an owner builder, you are responsible for:

• Getting relevant permits from your local council

• Getting a Certificate of Consent from the VBA before starthome building works over $16,000

• Ensuring that the work meets building regulations, standards and other laws

• Arranging for building inspections as necessary by law at specific stages of the building work

• Obtaining domestic building insurance if you sell within six years of obtaining the Certificate of Final Inspection or Occupancy Permit

• Ensuring that the financial, taxation and insurance requirements of the building work are met and fully comply with all laws

Owner builders are prescribed by law to meet the same legislative requirements relating to building work as certifiedor licensed builders. These requirements are contained in the Development Act 1993 and Development Regulations 2008

Under the Act, owner builders proposing to undertake building construction must:

• Obtain a Development Approval

• Lodge all copies of certificates of indemnity insurance for building or construction work to be undertaken by a certified building work contractor with the council before commencing that stage of building work.

• Advise the council of the name and contact information of the person who will be supervising the building work and construction.

• Undertake the building work in accordance with the approved documents 

• Submit a signed Statement of Compliance   (Schedule 19A) to the relevant authority on completion of the building work.

Australian Building Codes Board (ABCB) is a joint initiative of all levels of Australian Government. The ABCB is responsible for:

• Managing and developing a nationally uniform way to technical building requirements, embodied in the Building Code of Australia (BCA)

• Developing a simpler and more efficient building regulatory system

How to Apply for Owner Builder’s Loan Australia

If you are building your own home, then you may meet difficulty funding your project through a bank. Owner builder loans in Australiaare available for people who wish to take on building their house without appealing a licensed builder. In order to comply with this, one needs to submit his building plans to his local council and be approved the suitable building permits.

How much can you borrow
-95% of the project cost: If you’re a certified builder building your personal property.

-80% of the project cost: If you’re not a builder, you must have offered 20% of the cost of construction as cash, equity in another property or a gift from your parents just in case you go over your budget.

For all of the lenders, there are some papersnecessities that need to be satisfied. Most lenders will need the following:

1.Full income verification.

2.3-6 months’ savings and/or loan statements showing good conduct and satisfactory equity to contribute to the cost of the build.

3.A Copy of your stamped plans and building permits.

4.Detailed estimation of your construction costs.

5.Detailed timing schedule of works to be completed.

6.ACopy of the soil test and amountreviewers report.

7.ACopy of your public liability and other insurances policy documents.

Once you’ve given the bank all of the papers they require, it’s then a matter of submitting your application and waiting for approval.Once your loan is in place, you can start drawing down on the funds as you go.

Tips when applying for a builder’s loan

Tip #1: Make sure you have a valid license.

Tip #2: Consider pre-approval before getting into the owner-builder arrangement

Tip #3: Make sure you have all the necessary insurance policies as a builder

Tip #4: Create the owner builder’s cost estimate before being approved

Tip #5:Compare notes from different builders and also take note of inclusions

Tip #6: Insure the property first before the bank finalizes payment