Heise Says
#constructionapocalypse #recession #heisesays
The construction apocalypse will continue with more builders collapsing.
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It's all happening because of the government subsidies for the end purchasers.
The political class have overcooked the market.
Must be a bloody good air compressor! 😅
Look at the world economy get prepared for worse, more rate rises in the UK and todays jobs report means another big hike, Australia will follow, say goodbye to your home if your in big debt!
The issue with many volume builders is that they have signed contracts with too many clients, whose houses cannot be built all at the same time, falling behind of increasing costs of goods. On the other hand, some small builders have signed contracts with a handful of clients, whose houses can be built all at the same time, staying ahead of increasing costs of goods.
The domino effect
It’s easy money that did it, the government just made it worse. Central,banks world wide the same. This is a global problem, Australia is in the same boat!
Air compressor analogy? Think of a better example, anyone? 😂 love the Heise rants, I have my favourite ones! 👍
I come from a tradie background as a cabinet maker and these things aren't cheap some clients want average kitchen is like 20,000 sometimes 30,000 to 45,000 for the ones that are huge fit ins etc. I've seen so many bad builders sink and destroy so many other subbies livelihoods u will not see me shed a single tear I wouldn't even leak on them if they were on fire. Been in the game long enough to know that builders are all trash u get 1 or 2 full payments if at that then its back to a line of credit I owe u pay u NEVER. So many subbies sink cuz of this. I've seen sparkie hang himself in his own garage when the builder he worked for owed him crazy amounts of money disgusting and sad
Starting to get worried. One of my main clients build software for the construction industry. If the industry goes down I can see our services would be the first fat to cut off. Should start dusting off my CV.
Why don’t you chat about the chef who paid 140 dollars for lettuce! On the same page as this news story!
There are also greedy subcontractors who are bleeding builders
Got a quote for insulation labour only 3k one days work
It is a mess. I acted for developers on many deals for developers where Hutchies were the contractor. Always found them very good to deal with and have a good team. One thing I found quite often was that when developers went out to tender there wasn't enough work put in upfront so that tenders were compared on a like for like basis. Too often very key risks such as latent conditions, labour costs, material cost, quantum of LDs were not identified up front and then became a s storm when came to getting from tender to contract. Sadly we have spruikers encouraging people to be bold and engage in property development – to people who have no real understanding of the risks. Sadly the media continue to promote such people.
And if BUILDINGS have to become more GREEN add more COST
NEW NCC BUILDING CODE changes
The country will be broke and hungry when they have finished with the 43% carbon reduction controlled demolition of Australia.
As a builder, I stopped building larger residential jobs, because bank wouldn't fund deposit and you can claim for draw downs until items are installed on site.
Imagine paying 90% for windows, joinery, tiles upfront for a $15 mil project, and the bank wants a 5% performance guarantee bond, plus 5% retention.
This is why we stopped building muti residential projects and went back just building extensions.
Been sitting here with a large coffee watching this cluster f*** unfolding for years.
Mate just left supervising role in wa with a large builder. Lack of material is the major problem not labour. If you bont have material you can not do anything and it puts projects back.
It's not just builders. I know a number of contractors that are trading insolvent with monster tax bills. They've managed to keep going in the hope things will tick up and the government policies have allowed them to keep kicking the can. I get the feeling more government bailouts are about to come to the rescue again.
Hi 👋
I can build myself … 🙂
Gesundheit 🤧
supply issue in housing may mean home prices may bounce back quickly!
They can come and do some renovations and building at my place if they can't get work.
What's the relationship between interest rates and the demise of Zombies?
How many builders will be left by the end of this?
The level of stupidity in this country is a bigger issue IMO
We have just started our build.
Somehow, despite the crazy money been paid for housing, and accommodation, there's not enough money in the system?
Perhaps land is too expensive?
And far far too much government regulation of course.
Brought your Vid up, instantly paused it, and made a cup of coffee without thinking about it before starting vid (I usually drink tea)…..Subliminal advertising works! LOL
Had our monthly roundtable with insolvency partner, base on his obersvation that insolvency is still 40 percent down from pre-pandemic level but at upward trajectory. Their firm are doing a couple major ones (can not name the name here), but he said the demand for workers are high, all the tradies/subbies who lost their job basially walk into a new job second day (fantastic news). We will continue to see this instablity for another 2-3 years (not just for construction but other industries as well). Also on the side now, ATO is ramping up their debt chasing activities as of end of July, so that will push some of the firms into a corner.
Heart goes out to the Ajit customers, imagine trying to call this builder to see how the roofing is going, then to hear that disconnection sound.
Big supply issue
The cause…. Greedy home investors renting to already difficult families with exorbitant rental rates. What goes around will come around. Get it????
"Shit! Never saw that coming!"..Philip Lowe.
How quick people forget that these conditions are exactly the same as 1999 when GST was to come in force. Builders were signing contracts like a shark feeding frenzy. Many went insolvent because owners wanted the work done so they wouldn’t pay the 10% GST. The stampede to build lifted building costs by over 35%. The problem is also that builders have no self control. They sign up contracts knowing things are getting difficult while at the same time moving assets and draining their company of any cash as directed by their accountants. Front loading of payment schedules is a typical trait.
If an owner checks whether they have enough money to build so why doesn’t a builder check he can handle the projects financially. The building authorities are just as culpable by not checking this area of contracts to protect the consumers? Cheers
Now I can squat in abandoned builds..
Supply issue ? we have overbuilt with many vacant properties and second homes.
We have huge mortgages attached to all the job losses and all the job losses to come from the building sector and the broad economy .
We have massive price hikes because of the inflation , housing demand is falling faster than housing starts .
Interest rates are rising , capital requirements are more expensive we are in a major economic slowdown.
People will move back home , share homes , share rooms .
We have a massive over supply of commercial property people will move into
For Canada, Australia, Newzealand, and UK, only next narrative to print money can help them keep this debt bubble going