Pros and Cons of Owner Building
A Review Based on Personal Experience
Having just finished totally updating the ever-popular title, The Complete Book of Owner Building in South Africa I am left wondering whether owner building is a good idea or not. We’ve completed the exercise three times, and not once made any money, or in fact, even got our money back on any of the projects. So why would it be a good idea for you? You might perhaps see it as a challenge? Or maybe it is an opportunity for you to prove you can do it better than me. Maybe you’d do it just because you can! If you get it right, you could save yourself a lot of money and end up with your dream house.
Now if you’re wondering why this would persuade you to buy the new version of the book (which will, I believe be available from Random House Struik sometime during 2012 (reprinted/updated 2018) … hopefully, before the world ends), the one thing these building exercises did teach us was what not to do! With this knowledge, we have put together a title which hopefully will help you achieve your dreams. We have also discussed every aspect of construction in relation to the local national building regulations. And there are lots of good ideas and beautiful photographs of other people’s construction projects and finished homes and gardens.
Our First Owner Building Challenge
One’s first experience of anything is always special in one way or another. We had managed to buy two tiny seaside plots with a small inheritance, and decided to do an owner building on one and then sell it to be able to build something on the second – for ourselves, rather than resale. The first project, we thought, would pay for the second.
The idea is a good one, but first, you need sufficient money to achieve Plan 1, and then you need to be sure that you will make money on it within your time frame. In reality, even many full-time property developers have to wait a while before they make money on developments. And they usually have multiple units to sell, so they make money back progressively, over time.
We had a minimal budget. We spent more than our budget. Then we needed to sell quickly.
A downturn in the property market hit us hard, especially since this building venture was in a relatively remote spot that was, at best, an up-and-coming holiday spot. The fact that 10 years down the line the area began to blossom, was irrelevant in the scale of things. It was too late.
The house was basic but sweet. We couldn’t afford decorative finishes, or even basic appliances (like a fridge and stove), so that we could at least make use of it – or rent it out and recoup some money.
We had to sell and were becoming desperate. After an unsuccessful auction, a qualified professional in the building industry bought the property for a song. We didn’t get enough out of the project to start owner building on the second plot and eventually lost that too.
Going… going… GONE!
Our Second Owner Building Challenge
This time we did it correctly, or so we thought. Certainly, it was as right as we could have done it, but because we were owner-building, the buck stopped with us. We had nobody else to blame for errors, even if we didn’t make them ourselves.
We bought the plot, secured the finance to build using a solid quantification and costing programme, and then got down to work.
So what went wrong? Two major factors worked against us.
- The so-called professional who helped to survey the site didn’t pick up that we were building on a slope. The property looked flat enough, and we weren’t advised to formally assess the slope.
- Nobody realised that our neighbour’s soakaway drained way into our property, until after our foundations had been dug – not even the municipal health inspector.
That was enough to destroy a half-decent owner building budget. Not only was the slope considerably more substantial than everybody seemed to think, but we had to move the entire build forward to avoid the health hazard of the illegal soakaway (or French drain) behind us. It didn’t occur to us that we might have a claim against our neighbour.
So we went ahead and built the house which, I have to admit, while spacious and full of architectural features (for example, we only used doors and windows scavenged from demolition sites) had a few other follies. The most expensive of these was a long – admittedly very handsome – passage leading from a glorious front door we had rescued from some huge wonderful building we never knew.
The slope also cost us, because the foundation wall at the back of the house ended up over 2 m (or 6½ ft) high. Then there was the fill which had to be transported to the site to fill the void.
Apart from the obvious additional costs, the major impact of the follies and mistakes (be they ours or other people’s) was that we weren’t able to finish the build according to schedule. We didn’t particularly care, but the bank insisted we finish. Bank managers visited the site and introduced their own tough tactics.
NOW HERE IS A BIG LESSON YOU CAN LEARN FROM
When you owner-build you will negotiate draws with your bank. If they release 100% and you haven’t finished the house, you have a problem. This is what happened to us, and the bully-bank (totally within their legal rights) forced us to take another loan to finish ceilings and other things that we believed we could temporarily live without – including the lounge floor. The house was huge and large enough to temporarily board up the lounge. But the bank wanted everything complete, IMMEDIATELY, if not sooner.
Could we have said no? In retrospect probably yes. But they forced us to take a personal loan that we couldn’t afford to repay. Certainly today the relatively new Consumer Protection Act would have precluded them from doing this.
So we did put in some ceilings, including a glorious kitchen ceiling that incorporated a steel-pressed section from a Victorian building that had been demolished in Claremont (Cape Town). Eventually, the house was sold … and then sold again … I’m not sure how many times. Some years ago, when the house was on the market and there was an open-day show house, we discovered that a later owner had carefully removed the fill, and created an extraordinary double-storey home.
We wished we’d been able to buy it back again.
Our Third Owner Building Challenge
Now we knew it all! What could possibly go wrong?
In an endeavour to avoid potential problems, we employed an architectural designer to draw the plans, and a full-time builder to do the build. What we had “forgotten” was that the builder – at that stage also a friend – was the so-called professional whose advice led us to believe we had previously been building on a virtually “flat” plot. So retrospectively, we had only ourselves to blame.
But if the NHBRC had been in existence at that time, we would have been saved a great deal of heartache. Since we had to raise a bond to build, the contractor would not have been acceptable to the bank unless he was a paid-up member of the NHBRC.
So what did go wrong?
In a nutshell, we were ripped off by a bogus builder. Sure this is what he did full-time, but his reputation was so bad that when we later tried to sell the house, property agents wouldn’t touch it with a barge pole.
In the interim we’d had to call in a consultant to arbitrate (at considerable expense), because the workmanship was so bad. For example:
- The wall on one side of the house was a brick course higher than the other, so the roof wasn’t quite level.
- The walls inside the house that should have been bagged with plaster and been vaguely and unevenly smeared with a very weak mix. When we complained the builder set to work with a box of Polyfilla, in an attempt to even the surface.
- Nails had been left protruding from exposed beams.
- The brick-paved driveway was lifting and falling to pieces.
- Worst of all, he had run out of money and wasn’t able to complete the build.
Eventually we did sell, and were able to repay the bond to the bank. But that was the end of it.
So would I ever owner-build again? And if I did, how would I do it differently?
I might, but only if I had the money to pay good sub-contractors and proven artisans that I could really trust to do a good job. And I would be sure to take every bit of my own advice given in The Complete Book of Owner Building seriously!
But for now I’m content to rent.
Good day Penny, I have your book and am planning a new house. The idea is to build a wooden house, but unfortunately your book doesn’t cover this construction method as extensively as it does the other, more traditional methods. You do mention though, the pole construction method. This is a method that I was interested in, because the americans use it as it saves a lot on timber, therefore it is cheaper and a simpler construction method. Do you have info on this method and how acceptable it is in South Africa?
Regards
Hi Bongani, Only “home builders” who renovate structures/houses for other people (i.e. as a job) need to register with the NHBRC. So if you are renovating a structure that belongs to you, it should not be necessary. However, if the renovations are structural, and require plans, you will need these to be drawn up by a competent person who will submit them to the local authority on your behalf.
Good Day
I am new on building industry not registered with nhbrc
I’ll like to ask when you are renovating and old structure do you have to be registered with nhbrc
Labour is not usually worked out according to material costs. There should be a fee for project management and then labour costs should be worked out independently. Normally a construction company will pay laborers set wages … if you were to hire sub-contractors, you would either pay according to a quotation, or according to hours worked. I suggest you get another two quotes from different companies for project management and labour. And it might be a good idea to get quotes for the full job (all inclusive).
Hi
My building extension plan has just been approved by the municipality.
I have three qoutes for materals all coming just under R300k. The
qoute i have received from the construction company (only labour and
project managagement) also costs just about the same amount as the
materials. Is that correct or is there another way of calculating the
labour costs?
Hi Andrew,
All Local Authorities around the country should have a Planning Department where all plans are kept. The countrywide list of contact numbers is too long to give here but if you go to the blue pages of your local directory you will find the numbers there.
Hi Vanessa,
You have every right to contact the NHBRC and request their assistance.
This is what the HNBRC site says about anyone involved with the house building industry: “Yes, every builder who is in the business of home building must be registered with the NHBRC in accordance with Section 10 of the Housing Consumer Protection Measures Act. In terms of section 10 of the Housing Consumer Protection Measures Act 1998(Act 95 of 1998) any person in the business of home building is required by law to register with the NHBRC.”
They have the power to assist you and you can find their number in your area on their NHBRC-Contacts page.
As you already have a report from the local inspector you have a strong case and the developer must organise the repairs asap. BTW if the developer is not registered with the NHBRC then he has broken the law and the NHBRC can take action.
Hi Sarika,
I am sorry but we are not contractors and we do not undertake any building work. Our aim on this website is to inform, and try to help the public understand the National Building Regulations and associated matters.
Hi Daniel,
Yes it is Law now to register every house and every builder has to be registered as well. As an Owner Builder you have to apply for an exemption. Have a look at our other site ownerbuilding-nhbrc that covers this in more detail.
To Whom it may concern:
I am building a new house for myself. Is it Law to enrol every New
house with NHBRC and pay the Enrollment fees?
Kind regards,
Daniel
I am the owner of the new development since 20/8/2012.
I have informed the developer of water seeping through the lounge wall
from the balcony. An inspector has been out and given a report but the
developer is not commiting to sort it out. please assist with what my
rights are?
Good Afternoon, i was wondering if you could help, i have been looking
for floor plans/blueprints for a unit i will be moving into recently
and haven’t been able to find anything, i was wondering where usually
one could find building plans?
Thanks and Regards,
Good day Please can you contact me regarding the above for a new home
in Midrand. Ive attached my plans for you. Thanks
Attachment
File is attached: xxxxxxxx
Hi Isabella,
Firstly you will need to find out if the building contractor is registered here with the NHBRC. They will deal with all complaints and claims if he is registered with them. If he is not I am afraid you will have to employ the services of an Attorney and put the builder to terms to complete the work. Please update us so that others can learn from your experience. You can also post your story on our other site ownerbuilding.co.za
I need to lay a complain about the house which was not finish since
2010 by the contractor and I like to lay a complain I need to know
whats the procedure to follow with this matter
Many people do this Lee, but you might be required to demolish the structure if the local authority doesn’t pass the plans. It’s not a risk that I personally would take. Rather make another plan (excuse the pun).
Wonderful stuff Robert. South Africa is a great place to live. I hope that my book is helpful. If you need additional assistance please come back to this site and ask. I will do whatever I can to help. We are also working on a new site, http://www.ownerbuilding.co.za – so watch out for that in a month or so. And I would just love feedback on any building project you decide to undertake in this country. And feedback on the book will be great. I am currently working on another title about sustainable living in SA.
Go well.
Penny
Hello Penny,
My name is Robert and I am a UK Building Maintenance Engineer and Author. I am at the moment looking into the possibility of purchasing land in South Africa to build a retirement home for my wife and I.
Not being well read in the do’s and dont’s and must do’s of the South African building regulations and planning controls, I decided to purchase your new book the help arm myself in the ways that such a project should be tackled.
Have you received any up to date comments yet about you’re new book, ie; post June 2012.
Even if I do purchase land in the near future I will be sitting on it until I actually retire in around six years time. I will of course though if it is possible contact you to let you know how the project went. Naturally though once I have received your book (ordered today) I will leave a comment on your website.
Gods grace and wisdom to you in any future building venture.
Kind regards
Robert
Hi there Penny,
can you help me with the following query:
I would like to put up a granny flat urgently and was wondering if i could build it and take out the plans once it is built and have it passed or take out the plans whilst it is almost up as i am unable to wait 2-3 months for the plans to be passed and inspectors to call on the property to do their checks. Is this possible.
Thank you for your help Penny
Lee
NO Sam, that is the old book. The new one is hugely changed. I will post a pic of the new cover next week.
Hi there,
Is this the latest edition: http://www.loot.co.za/product/penny-swift-complete-book-of-owner-building-in-sa/nbpw-696-g930
regards,
Sam
Hi Theuns, We expect it to be on the shelves in June (this year!).
Hi Penny
Is there more exact dates available on when to expect the all-new edition of the book?
Kind regards
Theuns
Hello Anne. The Complete Book of Owner Building in South Africa is available from all good bookstores in SA. You can also order directly from Kalahari.com
We recently updated the text and have replaced all photographic material with brand new pix. This all-new edition of the book will be available soon.
Regards
Penny
Please advise where I can purchase your book on Owner Building. Thank you.