Builders begin hiking prices #Inflation

#construction #recession #heisesays
With the cost of building work up by 22% builders are hiking their prices to protect themselves.


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  1. I was planning to do a major renovation next year but in this environment, I've postponed indefinitely until I'm certain the economy has stabilised; meanwhile, I'll be just patching up minor issues DIY.

  2. People do not realise how much government red tape per block is in qld Brisbane alone titles 40kish+ civil headworks road works traffic (variable) adjustments water (depends if water pump needed to pump waste) electricity metre box nbn 6-8k sewerage connection 5 -8k don't forget that the dev has to release/ lose yield on land for mandatory parks facilities etc which is included in that land release… all of it is half baked into the land you purchase off the rip its like anywhere between 15-25% of the land price just on council fees and charges… wtf it doesn't cost that much… its ridiculous the land price is utterly insane!

  3. Dont think lve come across 1 humble builder here in Australia, they seem to all be about ego and making money. They like to manipulate the tradies that work underneath them and hold them out on their money as long as they can, they get on their power trips and look down on the men underneath them propping them up so they can enjoy the glory and riches without breaking a sweat. Its all starting to backfire now though and it was only a matter of time. Its just a shame theres so many good people that just want to put a roof over their head that will suffer.

  4. Traditionally, building a new home is often cheaper than buying an existing one. This is for two reasons, 1) convenience of buying existing means people will pay for certainty, 2) reduction in taxes like stamp duty etc. The challenge is, that once new builds are more expensive than existing ones, why would people buy new ones?

  5. Unfortunately if material costs rise due to inflation and sometimes profiteering by some manufacturers trying to protect their companies then builders will have to raise prices because no company can survive for long working at a loss without government assistance which is probably part of the problem like you say juicing the market and keeping zombie businesses going too long…. Inflation is a major factor EVERYTHING is more expensive then banks raising rates and some manufacturers and energy companies profiteering then staffing problems and extreme weather conditions…. Excuse the pun… its just a perfect storm of everything hitting at the same time… And we all know government reacts too slowly to just one problem let alone a few

  6. I decided to buy a near new home on 3.5 acres. The first problem I had was I could not find land anywhere. The second, was the builder I was going to use for the design I liked,upped the price from $600,000 to $800,000.

  7. That is just a normal thing to do as a subbie for a long time I cannot price a job without putting extra on as my materials go up every month or so and my pricing has a monthly date on it when the quote expires. I never had to do this before everything seems to be a big joke now I don't even want to think what the builders are dealing with that's are building 100s of houses a year

  8. Not sure why this is a surprise to anyone?
    Did anyone actually think it would go the other way?
    This is a lot like the 80s in a way. People can correct me as I was born in 85 but looking back –
    Major construction boom in residential, magie jump in house prices, wage growth, material cost jumping up , very high interest rates (21% under mr Howard as treasurer) then late 80s ended in recession and unemployment at 11%
    Then look at early 90s in contrast.
    What I’m saying is that ups and downs will always happen. We have become so addicted to 24hr news cycles and updates and we are quick to forgot history.
    Let’s all just crack a beer, pour a glass of wine, relax and enjoy the ride. Things will be different again shortly.
    Australia is a blessed country to live in and has a lot more booming to be done.

  9. Its amazing, Fedreal govenment is going to build 30 000 social housing homes and builders hike prices.

    There is one policy which will fix all these problems with housing people, renting, buying and building.

    The policy is : Pursuant to all tax deductions, tax benifits and or tax entitlements for all and any investment property and or investment dwelling, must rent out at the current market value for at least 6 months of each finnacial year in order to qualify. Any investment property or dwelling that falls short of 6 months rented will be excluded from tax deductions, exceptions gearing, depresiation and loss.
    This policy excludes owner occupiers and 1 holiday property or dwelling per owner occupiers.

    If the Govenment implamented this it would fix the problem and change how a dwelling is viewed and invested in and dwellings can be seen as a place for people to live and not a commodity to sit empty as a tax ride off.

    Also opens up dwellings for imigration and much needed workers as well as making it affordable without the need for pay rises from buissness.

  10. God dammit Florian, when are house prices going to crash I want to buy more houses. We don't even make lvl timber in Australia it's coming from overseas

  11. Unless we don't produce our own goods. These things will happen. But even after things builders going to collapse and still plenty of companies going to go under and broke.

    Wait for civil unrest to start in our Australia. There are plenty of other industries In Australia other than property.


  12. It's not all bad. Builders will have to employ better techniques for construction to be competitive. They are not the most efficient at what they do. My gut feeling is we will see more of a progression of better planning on the builders behalf to have construction. More focus on waste elimination. No more just buying bundles of architraves and skirts and just sending to site. No more pallets of bricks left over. No more chippies doing single architraves at a time, more of a production method.

  13. Builders say they are losing money when they make a million $$$ a year but think they should be making 3 million $$$. I know some great builders that stopped taking work a year ago so they could manage costs and staff.

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