Thanks for the post.
You have completely missed the point of my post; you wouldn't have if you were a builder and knew what you were talking about!
I have an understand what is involved in building. I'm building my own PPOR on a half a mill cash budget and that's for construction only. In saying that even though i'm the owner builder those that have building experience (my partner and father) are running the show. I say what I want and they make it happen.
You're assuming that stress only eventuates if you don't get enough work; not a suprising assumption considering you are just starting out, but there is much more to building than you are aware of at this stage of your game.
Don't know where you have gotten this from. We plan on building our own developments only. In between projects my partner will continue to run his carpentry business where he knocks back work coz he is so busy. Yes my partner would have the "builders license" but we would have NO interest building for others. Like I mentioned previously the builders that he does work for build only in certain areas and they build for themselves. I get the impression that you build for others rather than do your own projects.
As a result they build and develop the site and obviously take all the profits.
We would have ZERO interest building for other people. No $$ is worth the headache. We, like the builders he works for would fund our own projects. Now that is where the profit is made. Stessful, yeah but not if you have a good team of tradies (as he does) and more importantly know what is going on.
In the current climate where trade shortages are competing with competitive resource industry incomes you could be as useful as as a monkey's uncle and still be offered plenty of work..being good at your trade or being a good builder has nothing to do with the stress I was referring to, although it does have something to do with getting return clients.
Again the only clients we would have would be the people for whom the hammer at the auction falls for. Oh and excellent tradies do get work and usually get looked after by the builder I know my boy and others that he knows do.
was that when you compare profit margins and risk, an astute developer gets a larger slice of the pie than the builder for the amount and duration of risk he takes. Probably explains why most builders consider their building work a stepping stone into development; purely provides the cashflow or equity needed as well as experience.
Again we are the builders and the developers. My boy does frame, lockup, fix, floors etc. His carpentry ABN will get paid, me the project manager or assistant or stay home mother or what ever job title I give myself gets a wage (all i would have to do is organise a few quotes etc). Pay the other trades (most at mates rates). We do however need to fund the project and thats where we both come into the picture.
Then it comes to selling the properties at auction. Who gets the money? We do. No in between person. All us (well the company).
From your post I would infer that your partner contracts to other builders/developers so he is not the one doing all the organizing and assuming all the responsibility; he is a contractor in this situation. When he is a licenced builder operating in his own right for himself, then your opinion may, and will change. You will soon find out that building for others involves alot more OH&S, contract law/management, customer service, communication and time management and isn't just about banging nails in!
No you have it wrong. We are yet to officially commence "building/developing". We are sourcing land in the certain areas where we would only develop in. It's all about planning and finding the right place to do this. I have yet to complete my PPOR. Once that is finished and we are settled then we'll commence. We are looking at a 12 month time frame to commence.That is the whole point in him getting his builders license so that he doesn't have to contract any of that to others (builders) who would eat away at profits. Again my partner is a "contractor". My partner works for the builders who are the developers.
I just assumed that only builders were able to develop. This came from the work that my boy did for the builders who were the developers.
I wouldn't be able to get a builders license let alone an unlimited one. My boy is the one who would be getting the unlimited license. I plan on being a stay home mum and getting a wage for doing nothing (other than having input on design and fittings) out of this company.
