Australia housing bubble

[Citroënbender]

Originally Posted by John 13

WA government effectively bailing out large over committed "builders" in order to get homes completed. Appears that some MAY have used a pyramid scheme; over committing, tying up customers with contracts and then using new customers deposits to fund jobs in hand.

Who’da thunk it? Builders front-loading contracts to finish prior jobs.

I’m not sure if it’s technically a pyramid scheme but quite likely trading insolvent.

[fordomatic]

Originally Posted by Syndrome

Increasing interest rates are causing cash flow issues. Yet house prices continue to rise. Auction of a local property on the weekend makes me shake my head in dismay.

Crazy isn't it, when does it end............

[b0son]

The HIA contract needs to be set in stone. No alterations. Ours had so many standard clauses crossed out and alternatives put in that were entirely in the builders favour. Went through a solicitor, but they didnt pick up on the implications, so clearly they're not worth their money. If the contracts were 'reasonable', you wouldnt need a solicitor in the first place IMO. The payment schedule was massively front-loaded, and even though the bank looked it over, they didnt pick this up. Useless. It's all obvious once you've been through the process, but hindsight is pointless. The contracts need to be rewritten with this knowledge going in. Preferably by someone other than the HIA who have a vested interest.

[Sprintey]

Originally Posted by fordomatic

Crazy isn't it, when does it end............

Used to think that things like endings happened, or reversions to means or whatever you want to call that, but now realise they will let everything else end before letting housing end. It's the dumbest thing to punt an economy on, it's not productive but rather restricts economic activity in productive sectors as land and rent rise. But here we are.

[Citroënbender]

It will “end” when a balance is reached between peoples’ notion of property ownership and their tolerance of lifetime debt.

Which I personally consider a big part of our pig-headed “race to the bottom” but if it’s what people think they want, they’ll only be unhappy if denied it.

[Citroënbender]

Who else dips into the YT channel “Site Inspections”? There’s a recent 20 minute video showing a rubbish new build in north-western Sydney, it highlights the parallel issue of poor quality work even at high price.

[FTE217]

quality ? yer sign of the times.
People complained of high costs back in the day, little did they know that forced suppliers to search for cheaper sourcing - and here we are.
A poor bloke bought a new build next to me 4yrs ago.
I didn't have the heart to tell him what I was watching through the build.
It's impressive the wonderful Agents video but like most, don't judge a book by its cover.
He's had waterproofers back 4 times, the plumbing work I thought whilst the builders tradies were on the job, HTF is a Tradie going to get to any future leaking pipe issues.
Paint is already ready looking 2nd hand, steal works surface rust is showing like mad.

My daughter inlaw is a architect - whats her companies lastest job assignments that is growing of late ?
Due to high building and material costs and more council stipulatons customers/consumers are looking to have their plans looked through and cost cut wherever they can.
She said this kind of work is increasing for them like mad.

[blueoval]

Originally Posted by FTE217

quality ? yer sign of the times.
People complained of high costs back in the day, little did they know that forced suppliers to search for cheaper sourcing - and here we are.
A poor bloke bought a new build next to me 4yrs ago.
I didn't have the heart to tell him what I was watching through the build.
It's impressive the wonderful Agents video but like most, don't judge a book by its cover.
He's had waterproofers back 4 times, the plumbing work I thought whilst the builders tradies were on the job, HTF is a Tradie going to get to any future leaking pipe issues.
Paint is already ready looking 2nd hand, steal works surface rust is showing like mad.

My daughter inlaw is a architect - whats her companies lastest job assignments that is growing of late ?
Due to high building and material costs and more council stipulatons customers/consumers are looking to have their plans looked through and cost cut wherever they can.
She said this kind of work is increasing for them like mad.

Theres a number of people in the building industry that I know of first hand that have said if you buy a house thats been built in the past 4 years, proceed with caution. They were specifically referring to build quality as quality control during this period was questionable.

[John 13]

Originally Posted by Sprintey

Used to think that things like endings happened, or reversions to means or whatever you want to call that, but now realise they will let everything else end before letting housing end. It's the dumbest thing to punt an economy on, it's not productive but rather restricts economic activity in productive sectors as land and rent rise. But here we are.

Right on: A lot of Australia's exports are sold with little or no value adding, then we import an awful lot of our essential consumer goods from overseas. We are stitched up within numerous international trade agreements. But because of our comparatively small domestic market and reliance on our export industry I do not think that the 'Trump' import tariff theory would work here.

Back to the housing theme; "It's the dumbest thing to punt an economy on, it's not productive but rather restricts economic activity in productive sectors as land and rent rise." Remember John Howards 'The housing led recovery' . What's the saying ? doing the same thing repeatedly and expecting a different outcome !