A building loan offers a flexible path to home ownership. You could use it to buy land, then design and build your home from the ground up to suit your family's needs perfectly, or you could buy a modest home and upgrade it with major renovations. If your investment strategy includes flipping properties, a building loan can help you buy a fixer-upper and renovate it cost-effectively, then sell it for a profit.

However, hiring the right people to do the job can make or break your project – especially when you're building a new house from scratch. If you plan to subdivide a property to build both your own home and an income-generating rental, get legal advice on the procedure to follow. Factors such as maximum residential density, or the capacity of the electrical, water, and sanitation connections, may be subject to legal restrictions, so consult a professional during the planning phase.

Key qualities to look for in professional contractors

Many large building firms offer end-to-end services and could handle your build from start to finish – from drawing up plans and costing materials to construction and installing plumbing and electrical systems. A reputable company with a strong track record will keep you informed at every stage, so you can approve plans, materials, budgets, and changes – without you needing to manage the details and challenges of project managment.

However, this kind of bespoke service can come at a significant cost, or you may find it affordable only in new developments. If you're working with a tighter budget to build a freestanding home, you may have to put in some sweat equity instead and manage the build yourself. You'd need to engage individual professionals in various roles.

• Architect: They turn your vision into detailed designs and blueprints, ensure that your plans comply with building regulations, give you an estimate of the building costs, and may even manage parts of the project – depending on what you both agree to in the contract.
  
  
• Quantity surveyor: They estimate costs and help manage the budget throughout the build. They should also pinpoint any potential savings and provide regular progress reports.
  
  
• Building contractor: They physically execute the build according to the architect blueprints. Some may include quantity surveying in their scope for a single fee.
  
  
• Certified electrician: Most building quotes will include electrical installation, as the builder will subcontract those jobs to specialist partners. However, be sure to check that any subcontractors are also qualified and trustworthy. You need a certified professional to guarantee that the wiring from the local power grid to your distribution board and throughout the house complies with safety regulations, and that all electrical fixtures and outlets are properly connected. If you're adding solar power to reduce your reliance on the national grid, make sure an expert installer does the work and gives you a certificate of compliance.
  
  
• Certified plumber: Again, this will usually be a subcontractor, but the same checks apply. If your plans include a swimming pool, koi pond, water feature, hot tub, or even JoJo tanks and other waterwise technology, consult a specialist.

An architect who doesn't get your vision, a builder who disappears halfway through, or a quantity surveyor with inaccurate estimates can be both frustrating and costly. This can have consequences for your budget, your timeline, and your stress levels.

So, how do you know you're hiring professionals who are qualified, competent, and trustworthy? More importantly, how do you avoid the cowboys?

5 red flags to watch out for

1. Vague or verbal quotes

If a contractor won't provide a written quote or scope of work, walk away. A proper quote should detail labour, materials, timelines, exclusions, and VAT. 'Don't worry, we'll sort it as we go' is a recipe for disaster.

2. No professional registration

Reputable contractors in South Africa must be registered with the National Home Builders Registration Council (NHBRC) – that's why you can't be approved for a building loan unless you hire an NHBRC contractor. Architects should be registered with the South African Council for the Architectural Profession, and quantity surveyors with the Association of South African Quantity Surveyors or the South African Council for the Quantity Surveying Profession. Check that any of the professionals you hire are registered with the appropriate body, to ensure their accountability.

3. Too-good-to-be-true pricing

If you receive a quote that's drastically lower than others, it's not a bargain – it's a warning sign. It often means corners will be cut, quality will suffer, or there will be surprise extras later.

4. Sketchy references or no portfolio

Any professional worth their salt should have a track record. If they can't show you previous work, or if past clients won't give them a positive reference, trust your gut.

5.  Lack of insurance or guarantees

Without public liability insurance or a work guarantee, you could be left footing the bill for any damage or defects. Always ask for proof of insurance before work begins.

5 green lights when hiring a contractor

1. Clear credentials and registration

Your contractor should be registered with the relevant professional bodies and happy to share those details. These organisations uphold professional standards and offer recourse if something goes wrong, so always verify the contractor's membership.

2. Transparent communication and contracts

Look for experts who clearly explain timelines, budgets, risks, and responsibilities. They should give you a written contract and detailed project plan – not just a rough sketch on a napkin.

3. Collaboration and flexibility

Good professionals don't bulldoze your vision. Your architect should listen to your ideas and reflect them in the blueprints – and be open to revisions. Your quantity surveyor should flag potential overages before they happen. Your builder should raise issues early, not when it's too late.

4. Realistic timelines and boundaries

Be wary of anyone who promises to build your house 'in 2 months flat.' Experienced contractors know that building takes time, and their estimates should reflect that. They should also have systems in place to manage site access, payment milestones, delays, and progress updates.

5. Willingness to involve specialists

Experienced professionals know when to bring in experts – like engineers, building inspectors, or sustainability consultants. Choose a contractor who builds a reliable team around your project – if they insist on doing everything themselves, they could be a risk.

Home-building contractors vetting list

• Ask for references and speak to past clients.
• Check their registration on the website of their professional organisation.
• Review their previous work through photos, site visits, or social media.
• Clarify roles and deliverables. What does their fee include? Will they submit plans for approval? Who's managing the site? Are project management fees separate?

Looking to build or renovate your home?

Nedbank can help bring your plans to life with a flexible home loan. With the right professionals and the right financial partner by your side, you can build more than home – you can build a better future for your family.

Useful links

The National Home Builders Registration Council

The South African Council for the Architectural Profession

The Association of South African Quantity Surveyors

The South African Council for the Quantity Surveying Professionals