Home Owner Building a Granny Flat for Rent

Hi All,

I've tried to search on this forum but couldn't find any answers to my question.

This is my situation. I want a build a granny flat on my IP in Sydney's Blacktown area for the purpose of renting that out as well. The GF has been approved by a private certifier, and I now I'm looking to complete my owner builder course and get the permit, pay the Council contribution fee and any other fees to get my construction certificate from the certifier.

Now as a home owner builder, as I understand, this only entitles you to build for your own self such that you must live in that dwelling - for at least 3 years. I have called up Fair Trading and spoke to a lady and she's told me that since this GF is built for the purposed of being rented out it is considered a commercial build, and hence I need a builder and cannot do this under a home owner builder.

I've worked out that if I can do this build on my own, using licensed contractors of course, I can possibly do it on a budget of 70k (inc 10% contingency) from design to finish. However according to the rules imposed this budget doesn't appear likely, if I engage in a builder. I'm a very handy guy and can do light to medium constructions works and understand my own limits/capability and the risks involved with construction works as I work professionally in the Telco construction industry as a Project/Manager Engineer. However there is still lots to learn in the residential construction industry and a different set rules apply.

My options now:

1. I can now continue building this as a home owner builder and take the risk. I will proceed with getting public liability insurance and workers compensation for the whole build to protect myself against contractors - which is not cheap.

2. I can get a builder to construct the minimum in order to fulfill a builders requirement for the construction of "commercial" dwelling and complete the rest of it myself. For example, the builder can build the shell of the GF and I can complete the internals myself. I will get the builder to call upon his contractors to complete any work that requires a licence eg. electrical and plumbing internally. I will do the plastering, tiling, flooring, painting, kitchen, bathroom and internal fittings. However I do fear that my own work will requiring a home owner permit anyway as it exceeds 10k, which in this case I may need to take out public liability and workers compensation if I have people/contractors assisting me.

3. Get a builder to do it all for me and not worry about home owner builder and related insurance policies. The build will be quicker but will be more than than I wish to spend.

I enjoy the challenge and don't mind the build spanning over 6-12months doing it myself. However, as the same time I don't want to be breaking any laws and causing more trouble and money for myself.

Perhaps I've already answered my own question.
If anyone has any thoughts on this I'd like to hear from you :)
PM me if you wish.
 
Why do you need to have WC Insurance? You're not going to be employing workers you are engaging contractors who must have their own insurances in place.

Have a builder quote up to lock up stage & fix out/certification of electrical/hydraulics/building. This should get the project moving at a quicker pace then do the interiors yourself.
 
Thanks for the replies.

Workers Compensation has mentioned that it is a requirement under the OHS Act 2000 and OHS Reg 2001, because "owner builders are considered to be licensed builders" and have a "responsibility to provide a safe place of work for their workers and others". I don't intend to employ anyone but I will probably have family members to assist with things like painting.

Has anyone done a home owner build of GF for the purpose of being a rental right after?
 
Top