Owner Builder Property as an Investment

I'm planning to build a house on a block of land in NSW and my friend is also planning to build in the same area.

If possible, we will be constructing similar houses on different plots. We are also expecting to save some money by building it ourselves.

We are planning to lease out each others house and eventually gain some Tax benefits.

Is this legal? Has anybody done something like this? What are the things to consider while undergoing such arrangements
you should move into it first to get your PPOR CGT exemption started, then move to the other.

OB is fine but the savings can disappear if you aren't careful. not being able to sell is a drag if circumstances change
Make certain you get your OB license. Plus, there are different insurance obligations if you are an OB and plan to sell (this may also cover renting out too). So you'll need to check with the various insurance companies.

One other thing, I don't know if this is still valid or not, but if you are an OB, then I think you are limited to only being able to work on one property every 5 years (this depends on the state you are in). This may have changed to one year but i don't know for certain so you'll also need to check on this.

I do believe though, that if you get a transportable home instead of being an OB, then the above limitations change and are more flexible for investors. Some of the recent transportable homes are rather fancy these days so this may be an avenue you may want to look at as an alternative...

But check on all of the above though.

I was contemplating being an OB a few years back but found it very limiting from an investors point of view - so i ended up buying old places and doing renos instead.