Small Custom Home Builder

Private landowners and families building a home on their own block, plus people doing knockdown-rebuilds.

A fixed-price or cost-plus contract paid in progress stages as the build moves along. Your profit is the margin left after trades, materials, insurance and site costs.

• Reading plans and building codes
• Estimating and quoting accurately
• Managing trades, budgets and schedules
• Clear communication with clients

• A state or territory builder licence or registration is required for most domestic building work, check the requirements and any financial or experience tests
• Domestic building (home warranty) insurance may be required before you start, depending on the state and job value
• Public liability, contract works and workers compensation insurance once you hire, check what your state requires
• Startup costs are largely licensing, insurance, software, a vehicle and tools, plus working capital to cover wages, deposits and trade payments between progress claims, so budget for a cash buffer
• Cash flow risk: delays, cost blowouts and client disputes can wipe out a small margin, so use proper written contracts
• Council or private certifier approvals and site safety obligations vary by area, check locally
• GST registration and ABN requirements, plus how you structure the business (sole trader or company), are worth discussing with an accountant

Estimates suggest startup costs typically around $80,000 to $300,000, depending on licensing, insurance, software, vehicle, tools and the working capital needed to cover wages, deposits and trade payments between progress claims.

Estimated monthly revenue is typically around $30,000 to $150,000, depending on how many homes you build and their size. Delays, cost blowouts and client disputes can wipe out a small margin, so use proper written contracts.

Things to check include the state or territory builder licence or registration and any financial or experience tests, domestic building (home warranty) insurance, other required insurance, and council or private certifier approvals. Check GST and business structure with an accountant.