1. Whether it is a New Home of Renovation, do NOT over capitalize for the area you are in. Build to the average size of the area.
2. Do not make the design so unique thereby limiting the future size of the market when selling.
3. Choosing the wrong builder to manage your project, interview him, seek out suppliers of his, previous clients, spend time, to be comfortable that you can work well with him.
4. Trying to save money by performing work that you are not experienced at, therefore holding up the job. Sweat equity generally takes longer than expected while potential savings are never as substantial as anticipated, and they generally add unnecessary stress and anxiety to a process that already has too many variables to be managed.
It is more important that you spend the time on managing and planning the project to save money by building on time and on budget.
5. Not getting the loan approved before starting. As an Owner Builder it is imperative that you know that the finance is secure. Banks require a higher deposit when Owner Building and require the owner builder to use his money first. So have the loan approved before starting. And do NOT over spend, as it would be very difficult to increase the loan.
6. Failing to insure the project correctly. With New Homes, the bank requires that a Construction and Public Liability policy be put in place, but with renovations, they generally extend the mortgage, and the Owner Builder forgets or assumes that their Home and Contents Insurance covers them during construction.
It will NOT!