Home buyers left worried by the shaky construction industry | 7.30
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- Опубликовано: 29 май 2024
- Another construction company has announced it's going under - joining hundreds of home builders who have gone bust. It is making people in the midst of building their homes very anxious. Elias Clure reports. Subscribe: ab.co/3yqPOZ5
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American dream homes for Aussies who watched to much TV, building company s taking deposits the day before filing for bankruptcy, and Govt watchdog s doing nothing,what could possibly go wrong
Nailed it.
New house prices are not realistic anymore in Australia. Just stupid prices that guarantee a lifetime of debt for buyers. A new house doesn't equal happiness - the novelty soon wears off.
I do wonder how much of this is an intended consequence. Recall WEF motto "you will own nothing and be happy". They want us all renters and subscribers and paying every month.
@@gabrielsyt I am sure it is part of the plan. It's happening around the world. These psychos don't want ordinary people owning anything. But the majority I think have encouraged this through excessive use of credit, not saving a cent and just wanting too much, plain and simple. People just cannot do without anymore. They have to buy everything and on credit.
I had to live somewhere and a new house was easier to. You can put in a land deposit, then keep saving.
I got the smallest house Boutique make 🤷
@@janebaker4912 Smart move. Big houses cost much more to heat, cool. Take ages to clean and half the rooms just sit unused unless big family which is fair enough. I built a massive 245m2 double brick house with everything on 650m2 1 km from beach in Northern suburb of Perth in 2001. The build cost was 112k for the whole house - it took the builders only 12 weeks from start to finish, I moved in 12 weeks after the building began. I spent another 50k to finish it with everything done including landscaping pop up reticulated etc. Land cost 78k then. I was worried about being 180k in debt back then. I couldn't imagine being in debt 600k like many are now. Terrible. I was paying 7 percent interest back then. How it has all changed.
@@esskayaussie286 78k for a 650m block close to the beach 🤯
In 2018 I paid 255k for a 484m block in a very meh neighbourhood.
Building cost was 300 something.
We have a 435k mortgage.
The interest a killer 😭
I used to complain about getting one size up, but I've stopped complaining now.
Let me guess.....Probably 3 people living in that Ballarat McMansion.
Contract signed in June 2020. Slab down since July 2021. Dodgy trades, defects galore ever since. No attention to detail, no one ever reads the plans. The outcome? Fit and finish no where close to the display homes. Plus an invoice for final stage payment, yet the house is still missing features listed on the contract. Good Job, you've won the incompetence award, Weeks Building Group (SA). Not issuing them the last payment until it's all done as per contract. This is the new norm. Massive gamble when building.
That's sad. Building industries have gotten worse than ever before.
Sorry to hear that. Private building inspectors over there, too, I'm guessing?
I've heard bad things about Week, never thought it was this bad.
It is a losr lose situation
Even when they knew that costs had already skyrocketed, they still took the money, knowing that houses would not be started or completed. They signed up new contracts, and took their money. If they took the money, and a short time later declare bankruptcy, then that is fraud. They were trading while insolvent.
Yes it's theft 100%
Are you serious! No one PLANS for bankruptcy! And BTW, who are THEY? The building industry has been through hell and back and thousands have lost their jobs. Get a grip mate!
Yep. Everyone in the building, construction and real estate industries are absolute criminals.
Before the pandemic I was a cash in hand demo worker for several years. The amount of times we were tasked with jobs you would expect tradies to be doing is actually scary. I had no experience in putting up gyprock, roofing, putting up frames, etc. They didn't care so long as they could pay a fraction of what they would pay a qualified tradie. Half the time we were doing more building than demo, the youngest of us being 16yos straight out of school with no exp (that being said none of us had exp doing what we were doing). One of the builders we used to work for on the regular was put all over SA news for his dubious practices. That being said the rest of the builders we worked for are still in operation.
@@neilinaluaracailie you are a bot, that is what you are.
@@neilinaluaracailie WARNING scam bot.
A sad situation all round, from the client to the tradies to the builder.. One thing i had learned early on in Building, is being a bigger company is not always better..
Buy a dream home thats already built instead of a nightmare home that hasn't been built nor will it be built
Time to use PAY WHEN DONE.. so both buyers and providers can enter a deal that will go the distance and avoid rip offs and un necessary loss.. a bit of forward planning ,transparency and honesty will go a long way to a better outcome for all..
however tradies will disagree with that, this is why tradies will not lock in the fix pricing, this is why builders are force to pay higher cost when the price changes. the builders are the business that promise a cost for client but tradies are not, so the tradies can hold the whole project hostage.
the previous gov put homebuilder grants in place , that overheated the house market as the reserve bank lowered interest rates to .1 % , easy money and gov incentives caused this mess now we are in for the fallout coming ,
These construction firms are just shutting down to not honor their contracts because its not worth their time anymore. Moving their funds and rebranding under another name and its business as usual. The only person who's not protected is the consumer. I just built at the start of this year and its been smooth sailing, just mindful who you choose to be your builder.
This is a common practice. There's actually a name for it in the ACCC .. it's known as Phoenixing where a company rebirths itself as a new name.
How does one do this? I feel like they can tell you whatever they want if you ask them about their financial situation…
It looks like there's nothing there besides houses. Not even public transport. The government isn't doing its job.
Hardly a tree 🌳 either
The size of some of these homes ... have they ever thought about the heating costs in winter ...some of my wife's friends have huge homes on the Gold Coast ...its like having dinner in an empty Scout Hall...A home should wrap itself around you with comfort..
The Australian government
Made the rules
Blame them
Holy hell, that house is enormous!! 😱
But it has to comfortably accomodate 3 people 😂
She’s welcome to the heating bills, weekend cleaning etc etc . Her bank will be pleased
@@aussie8114 😂 I just don't get it!! No-one needs that much space, especially not 3 people. I'll keep my little 10sq house with no power bills and low insurance premiums.
@@DPK12 exactly! A house like that becomes a prison not a home.
And the crappy building standards in Australia means it will be horribly inefficient and falling apart in a couple of decades.
Most builders use over leverage of as little as 5% to start a project , while home owners are expected to have 20% deposit. 😮 that's the problem.
This is sad
Common people put their whole saving 😔
Home builders don't want to pay the trades people what the market demands. That's why you don't hear about commercial builders doing it rough. We've got two houses without roofs for almost a year in our town because the builder is notorious for paying peanuts, yet the new commercial builds are a hive of activity.
Who the F needs a house that bloody big its not like she's got six kids these silly people who take out the max loan to buy their first house only to loose it when interest rates go up or a recession hits.
to impress other people that don't really care
They need to keep up with the Jones's and keep feeding the pride. They thrive on the praise from others for living in a huge house which the bank owns.
And a banking industry handing out loans they know will probably not be paid back then bundling these loans and on selling them .. they're a enemy of society and will lead us all into financial ruin
Idiots who think that $1m is easy to come by. How many morons these days borrow 6-7x their income? All of them. Morons everywhere.
They need to fake their status that they are rich. You can see how they struggle inside and the stress mentally.
Unfortunately its a pattern of the times, the housing industry went down the model of bunnings type practices that put smaller family business’s out of commission using a - made from local and imported ingredients boast but were mostly inferior imported materials for cheap.
The government and council’s cashed in by overcharging and increasing overseas import while over taxing local manufacturing industries, crashing those companies.
Average workers and consumers all lose out in the end. Sadly a lot of these houses that have been built will be throw away houses with serious defects that won’t stand one lifetime.
"a lot of these houses that have been built will be throw away houses with serious defects that won’t stand one lifetime" - you got that right.
Nice homes interesting 🤔 Hope things improve.
My builder started off $130,000 below all the other builders in the local area, then they raised the price by over $300,000 When I could no longer afford to build. The builder told me I would regret not going ahead. They then threatened me with legal action. The builder then tried to sue me for $10,000 with NO CONTRACT. The builder tried to lie to the judge MULTIPLE times, the builder LOST the court case then started verbally abusing myself and abusing the judge. He also was intimidating me and my family. He even had another statement of claim for another customer for $18,000. If they are reading this, they know who they are. I rang head office of the company whom they franchise through. They gave me the usual they take complaints seriously talk but could not care less. If all builders are like this. My heart does not bleed. They screw over young people on a daily basis and ruin them financially. If anyone is thinking about building DON'T! Builders are bullies, they are stand over men who will do anything to separate you from your life savings. If they cannot deliver, they should turn customers away instead of trying to financially DESTROY them.
*NEVER OVER PAY THEM!!!! PAY THEM ONLY AS WORK IS DONE!!!*
Easier said than done
Once they have started, it would cost you more to get someone else to do the job, if you could get them
I feel sorry for these people, but you didn’t have to pass year 10 economics to see this shit coming
I don't know how people can stomach buying pre construction
The boom is falling apart and if it collapses, we're all doomed.
*when it collapses
Very Sad
Glad I’m out of the business during these difficult times.
here's hoping every new home owner has employed a reputable inspector to go over the entire build.
House couldn't be built more shoddily using the cheapest of materials yet builders go broke? It doesn't add up at all.
Who was responsible for interest payments before the house was finished but after it was meant to be? In commercial construction there is a fine of around $1000 per day which keeps us on top of our deadlines. Hire a project manager who will take care of this for you. Get a contract.
I think the current situation is a pile up of problems and mismanagement by the Morrison Government. They failed to oversee and predict the current uncertainties.
It’s only getting worse 🤦🏻♂️
I don’t understand why any builder would offer a “Fixed Price” promo. Anyone in their right minds would not enter into such risky business strategy. It just doesn’t work in the construction industry whether it is pandemic or not. Construction materials are like stocks! Their prices go up & down all the time. And interest rates will always fluctuate in banks..
There will be no more housing available more bigger companies will build houses and rent them . Companies like invitation homes ,black stone in USA owns 160,000 home combined and still buying more this is new business model not to forget Air bnb .
Most consumers go for price as the determining factor…then wonder why quality isn’t near acceptable!
Building inspector. Please invest in an independent building inspector that is overlooking your house build from the very start. The builder knowing all his work is going to be scrutinised from day one will be well worth the additional cost.
they are slashing jobs but sending the mixed message they cant source enough workers ????
Slashing the sales jobs! Trouble getting tradespeople for build.
Well, the builders have only themselves to blame with a "Boom or Bust" business model, which only leaves egg on their faces, but the real casualties are the people who put a deposit on future homes
And the sub-contracors who do the work for nothing.
Oh OK. And I thought it might have had something to do with the pandemic and the government grants..... Silly me.
@@trevorwright7780 what, are you on?
Mu 1 question is: as a mortgagee, you have to pay mortgage insurance, when you begin to build, you have to pay building insurance, why or where are these insurance agencies?
Or, why does the little guy always have to pay insurance when it is useless?
Congratulations on Building homes across the world 🌎
Very happy to work with you
I applied for jobs and no luck also want to contribute in the design sector . 30 yrs experience . VBA are hopeless and greed by the volume builders and undercutting each other.
this was all pre COVID
Tradies want to earn the same as neurosurgeons.
Article literally said it's from the 30% price increases on raw materials but go ahead blame the workers.
@@Tasmantor Don't forget, they want to buy that Ranger or Hilux.
Yes tradies who mostly don't have the skills to even warrant their profession. Yes aspiring to earn as much as the white collars.
That cat is precious. I full grown cat that is quite small too!
Australia is a Ponzi scheme
I doubt that profitable contract will be likely- with rising interest rates, material cost, uncertainty in material availability, (also climate becoming more extreme), rising insurance costs, hard labor with minimum wage increase, clients with limited budget wanting to cut costs down to bare minimum, and construction most immediately and severely impacted as a result of recession which is forecasted.
Ballarat property is doing amazing
over reliance on tradespersons, problem of subcontractors. and guess what more? whenthe material goes up, the subcontractor still price by the same %margain, so they are demand more profit, and because cost of living goes up, so the tradies will charge even more profit margin. the tradeperson should also lock in a fixed pricing just like the builders and the customers. this kind of problem were in the manufacturer industry many years ago. the other problem with the labours is that our oversea tradies cannot get PR or visa with their profession. if we want more affordable housing, we need to provide policies to get oversea tradies in to do the jobs that we are obviously not willing to do. Many tradies get out soon after they get in, so the only way to address is from oversea where they are more reliable with their works compared to the domestic ones.
nice sign ... Until the parent company decides its time to pull there finance
Yep
enormous establishment
Not feeling any sympathy with Danny and her McMansion gotta say. People are increasingly homeless out here, landlords are stripping us bare, and Danny isn't completely satisfied with her $2m property?
Yeah sounds tough
I sympathise with the stresses that these home owners would have experienced in not knowing what their outcome would be or how much they could lose. Investing hard earned money doesn’t have without risk. We don’t know their financial situation or the reason for them choosing to build a large home. Maybe some relatives plan to move in. Investors building homes that they plan to put on the rental market can easily find themselves in the same predicament these days.
Just move in, working progress 🤷♂️
Too many tradies are knuckle dragging red necks… Sadly quality and pride in the work are not common character traits!
Yeah, nah, It's got nothing to with the quality of the people and everything to do with money. It's more profitable to slap houses up quick and move on, the legal costs are lower than doing a good job the first time. So the trades are ridden like a Pony Express horse, just get it done and move on. It starts with the Levitt town model and continues to now. Blaming people for doing what they are told rather than the people making the decisions is cowardly and callous.
when you are rude or if you pressure people and dont listen to the reasons that mean you can get what you want you will lose out you must allways listen to the reasons people explain to you its not just an excuse i think managers constantly fail to innovate
a lot of the builders are greedy scum bags that got caught. I have no pity for them at all. We signed a contract in August 2019 and the builder built in a seasonal water table and then abandoned the build. I have only recently been able to retake possession of the house with legal assistance. I am aware that the builder is sailing close to the wind and when he does go bust, I will be telling the Building Commission and SAT that I told you so.....
Due to Liberal Government cost cutting, construction companies now "self regulate"... That is why so many corners are getting cut, the biggest of all is JOB SITE SAFETY! On a side note, you will notice that while the companies go bust, their owners manage to still live the high life.. Time to get rid of Proprietry Limited rorts! But, as a lot of politicians are also business owners, we all know that will never happen!
Reminds me of Egypt.
‼️🚨‼️🚨‼️🚨Simonds Customers!!! ‼️🚨‼️🚨‼️‼️What’s going on??? 🤷♂️🤷♂️🤷♂️
Greedy builders and rip off tradies.
Yes the exact problem combo.
Ms. Lyons should check her thyroid. Beautiful house, love the exterior color choice. Wow!
Maybe if we Australians stopped building the biggest homes (on average) in the world and started living in spaces that are reflective of our real and actual needs we would all be better off.
they are powerless to fix anything in there house
That's frustrating... Its Lockdown cause and effect
More builders go bust tradies over priced gouging bills greed greed
Solution = Boxable.
Boo hoo !!
This is why trade businesses should be able to take a higher deposit from customers, 10% deposit is nothing when the tradesman risk loosing 90% of the cost of the job....
Why are they building double storey houses with only 3-4 people living inside them? No wonder why builds are longer.
One reason people choose to go double is that blocks some new estates are so small these days that you need to go double to have any backyard space for the kids.
No workers because you wanted to force zap them and lock them down. Finish the Houses yourselves
Oh well
Sookie la lar
just move in. looks move in ready.
Wait for the defects in 5 years so much poor quality over the pandemic
Forget Australia. Here your set up to fail.
Very little sympathy for people who can afford to buy a house. Many people work full time jobs and cant even afford rent, and would NEVER be allowed to gat a mortgage. Where do you think those banks record profits are coming from? You have to know banks and builders are doing something dodgy.
And real estate agents are the accessories to the crime.
BUY! HOW MAny subbies betting ripped off anf not going to servive.
Thousands, but it doesn't make good headlines like "Mortgage Stress" and "Another One Bights the Dust".
You should have been around in the 90's. You would have known a few unpaid subbies back then.
"people dont just show up" blame the backlogue of work created by the scamdemic amongst other factors
Not enough deaths for you to realise covid is a killer?
what a load of shit, during the pandemic worker numbers where deliberately cut down on work sites to comply with the "social distancing" scam . an example would be that a worksite that may have had 60 active capenters on the tools everyday was told they would have to limit the number to 5 carpenters on site per day in order to limit social contact, which meant most healthy workers were sent home and made redundant
Building industry had record years during the pandemic. Builders and trades mostly counted as essential workers and continued working through out. Your fantasy might help you feel smart and secure but it only keeps you scared and distant from the wider community.
I have never been on a site with 60 chippies lol, what are you on about?
Now we COOKIN
Keep on copying American capitalism.jjjjjjj.
Well it’s obvious isn’t it … governments that don’t bring in immigrants with building trades skills and an RBA that increases interest rates every month
Buy a house dont build new.
Poor CEO, not enough slaves available to work 😢😢😢
Yes the damage Labor has done to our country in just one short year is out of control
It has nothing to do with deregulation from the previous 9 yrs of lnp debacle?
@@BTBSean0 No builders going bust is because of Labor totally destroying our country with their cost of living crisis, inflation and constant interest rate hikes since they took office
This lady signed up during the LNP reign of destruction.
@@Michelle_Emm You call the building boom we had for many many years destruction, why is that?
@@tjmarx If interest rates go up, power goes up, wages go up, inflation pushes prices of things up because of government debt that keeps climbing, that is government related. But yes China lying to the world about their virus likely from the lab is to blame as well for sure
Its not over by a long shot.. my husband and i run a construction business and 9months to march quarter we've made a loss of $480k..there is no money.. we've just handed over a house yesterday to a client so far we've made a loss of $120k just on that job we cant pass on the price increases that we've been forced to pay with the suppliers. We should be able to pass those costs onto the client and don't get me started on the blackmailing subcontractors.. all our life savings is gone we've had to plough it all back into the business to save it.. we're wanting to get out of the industry but we have no money..lucky for the majors they have the backing of billionaires not us little guys
That's the thing with running a business. Sometimes you make money, sometimes you might lose some. When have builders ever passed cost savings (cutting corners) to their customers during the good times? Builders would have cited the contract price if customers asked for price reduction during the build. So why should there be a double standard?
@@samjones6464 Right.. cost savings under construction from a builder.. no such thing mate.. when we quote a house every item is priced from suppliers.. suppliers never reduce their prices.. if it takes us 6 months to quote and do the ridiculous paperwork to get you to contract then it takes a further 12 months to build in that 18months we’ve had 6 or more price rises under normal conditions.. but in the last 2 years it hasn’t been normal, prices rises are occurring weekly but we still have a price that’s 18months old.. there’s no such thing as builders getting price reductions from suppliers and subbies they are worse than anyone blackmailing you for more money that’s if we can get them to turn up and do a decent job their quality is shit then you have to find another tradies to fix the last tradies work and we’re paying double.. no one works for nothing except the builder we work for nothing when we’re losing money I might as well burn it if I had any.. at the rate it’s going we are owners of every single house we build if I’m paying $100k more for your house then I part own it wouldn’t that be great if I forced the client to sell so I can get my money back that they owe me..
@@fifitrixibelle9279 I know you're hurting right now but I think Sams point boils down to the fact that you had $480k to loose. Most people would never have "made" that amount of money, let alone off other peoples labour. So when you bemoan your condition it falls a little flat against the ears of people who are used to hearing how business owners deserve all the profit they can squeeze out of workers and customers because they take on so much risk. Here's the risk has paid out and you're not taking the lumps you used as justification for all the exploitation, you're having a sook.
@@fifitrixibelle9279 I empathise with your situation and can assure you, nobody in this comments section would like to be paying their employer to go to work..
I'm not sure what people think Builders make, but a 30% price increase if not more on materials, is the profit of the job..Well done in completing your homes and staying solvent..
I sincerely hope things improve for you.
Well in reality your customers don't really care about how you make profit. They only care about getting what they paid for, end of story. Your job as a business owner is to make profit but please we don't want to hear that.