ATT: All OWNER BUILDERS/BUILDERS! HEEEELP!!!

[morn.pen]

Hi there and thanks for spending your time reading this,

Any help advise will be greatly appreciated!!

My mother and I have purchased a property on the Mornington peninsula under the name of our family trust. I am a qualified carpenter and have spent the last 12 months living in the house while we tackle the process of design, permits and OWNER BUILDERS application.

The last few months have seen the internal renovations start to take place and are nearly ready for paint and carpet..Really pleased with the outcome!!
Today we got a massive smack in the gob with mums application coming in the male with a bit fat REFUSED on it!

It states:

The board found that..

-The applicant is carrying out the building works for investment (sale) purposes as stated on the application, and
-The applicant does not intend to reside in the home upon completion of works.

As a carpenter myself for admittedly only the last 7 years and my parents being in the property game for the last 30yrs, never have we once heard of such a thing? Has anyone else out the ever had this same drama or knows something about this process? I guess we were silly in the way of telling them the truth but never did we expect this!

We do have a couple of options like having a builder sign off our work or I can apply for my DB-L License but only being 25 and no assets I may find it hard to get insurance?

Any help out there will be greatly appreciated.

 

[Propertunity]

You can only be an owner builder if you are both the owner (which is an issue with the property being in the name of the Trust), and the builder (which you are), AND you either live there as a PPOR, or you intend to live there (and it appears that you have told them that you do not intend living there).

All this = the result you have.

You'll have to do something other than Owner Builder.

 

[pulse]

Agree with Propertunity,

owner builder permit rules are pretty similar in every state.

Cheers
Pulse

 

[Pa1nter]

You can always reapply and this time tell them you are now staying in the property
Remember you are only one in hundreds of applicants they read,

 

[Sheryn]

The last few months have seen the internal renovations start to take place and are nearly ready for paint and carpet..Really pleased with the outcome!!
Today we got a massive smack in the gob with mums application coming in the male with a bit fat REFUSED on it!

You do not need an Owner / Builder permit to renovate inside your property IMHO.

If you are going to renovate outside & sell then a different matter. Go down and talk to Fair Trading.

Your intention must be to live in the property, apply for O/B in your name!


Regards
Sheryn

 

[BV]

You'll have to do something other than Owner Builder.

Can't he just change his mind and live in it?

 

[Propertunity]

Can't he just change his mind and live in it?

Yes he could

It just looks a little sus when you put in an application which comes back "rejected" and then you resubmit an amended app. saying "Oh did I say I was doing this up to sell? What I really meant was, that I am doing this up to live there"....."oh and yes, I know the ownership details are in the name of a family trust but I have tax advice that it is OK to rent off my trust "

You could expect to attract their close attention, if they say new submission is "approved"

 

[Propertunity]

You do not need an Owner / Builder permit to renovate inside your property IMHO.

Sheryn, it is not a matter of 'inside' or 'outside' renovation. Legally, it is a matter of the value of the work being over $12,000 and the requirment to obtain OB insurance (at least in NSW).

http://www.buildingcentre.com.au/co...ist/category/130-nsw-owner-builder-course-new

 

[arms]

Yes he could

It just looks a little sus when you put in an application which comes back "rejected" and then you resubmit an amended app. saying "Oh did I say I was doing this up to sell? What I really meant was, that I am doing this up to live there"....."oh and yes, I know the ownership details are in the name of a family trust but I have tax advice that it is OK to rent off my trust "

You could expect to attract their close attention, if they say new submission is "approved"

irrespective of whether he lives in the property or not he cannot nor is eligible to obtain a ob license as the fact is he doesnt own the property ,end of story really

 

[Propertunity]

irrespective of whether he lives in the property or not he cannot nor is eligible to obtain a ob license as the fact is he doesnt own the property ,end of story really

That might be a state based thing. Again depending on 'who' owns the land. If it is a Trust then quite commonly the trust will have a corporate trustee i.e. a P/L company. In NSW at least, in relation to an ob licence, "there are specific rules for applicants where a company owns the land"...so it is not entirely out of the question.

 

[Blacky]

Who is the trustee of the trust?

This is who will be listed as the "owner" of the property, as the govt does not recognise Trusts as entities for land ownership.

Blacky

 

[Minx]

I think he is in s bit of a pickle. The whole intention of OB is that it is intended to be lived in by the OB. The fact that he is doing work with the intention to flip means that they have buckleys chance of getting OB. OB is not intended to be used as a way of doing works in lieu of having a DBU.

The poster asked if he could get his DBL. You could however from how I interpret his posts, he has engaged in a role that represents a DBU (domestic builder unlimited). You could try and get your DBU however it's a long process and a lot of work.

The poster is in pickle as I don't think they will find an inspector that will sign off anything. The works appear to be illegal in the eyes of the building commission and there is no insurance or anything. Might make selling a bit difficult.

 

[Macca]

Hi,

As you are a carpenter you are already in the building game, hunt around for a licensed builder who will do the application for you.

Someone you know will know someone, who might know someone who will help a brother chippy out.

 

[Perp]

You do not need an Owner / Builder permit to renovate inside your property IMHO.

Sheryn, it is not a matter of 'inside' or 'outside' renovation. Legally, it is a matter of the value of the work being over $12,000 and the requirment to obtain OB insurance (at least in NSW).

Propertunity beat me to it! But to reiterate: whether something is "structural" or not, whether it's inside or outside, whether you need permits for the changes etc - in most states of Australia all of this is completely irrelevant to whether you need a builders'/owner-builders' licence or not.

If you are doing works which are valued over a certain amount - usually around the $12K figure quoted - then you need a builders'/owner-builders' licence. And it's not the cost to you that's important; it's how much you would pay a licenced tradesperson to do the work. So you might paint your house for $1K of paint, install a flat-pack kitchen at a cost of $3K, and tile a couple of rooms for $1K worth of tiles... but the retail value for these jobs done by a licenced tradesperson would almost certainly exceed $12K and thus a licence would be required.

irrespective of whether he lives in the property or not he cannot nor is eligible to obtain a ob license as the fact is he doesnt own the property ,end of story really

Good point. It doesn't sound good for you, morn.pen.

How likely are you to be able to find a builder to carry responsibility for works which are almost complete?

Out of curiosity, why are you only getting a response now? Did you apply well into the works, or does the application process take a ridiculously long time?