Mobydisc said...
What these sorts of reports don't really mention is the cost of building and land has skyrocketed over the last couple of decades. Back in the 80s and earlier building contractors were paid cash. They didn't have toilets onsite, workers would piss behind the tree or whatever. There wasn't any OH&S regulations. Builders didn't have to put fences up all over the place. Superannuation wasn't an issue as well as workers compensation. Building codes not as complex.
Since that time all these sort of government regulations have come in. All this stuff costs builders and building contractors time and money. Building is now a very government regulated industry which means extra costs passed onto the customer.
At the same time local and state governments have put in place all sorts of levies such as footpath levies that raises the cost of building.
Meanwhile governments have passed on the cost of opening up land to developers who pass the costs onto the customer.
Also houses are becoming bigger and more luxurious. I'd imagine it would be quite difficult to get a small two or one bedroom house to be built by a project builder.
It would be interesting to see the cost of building an average 3 bedroom brick veneer house in the 70s compared to today.
and cut throat profits. it amuses me when the bsa release media telling people due to the downturn you will get very good costings for building projects.
but in reality, contractors are losing money as soon as they step out of the car so they cut corners. like a tiler can buy glue for up to say $40 or $15 a bag. if they have been screwed which bag are they going to buy.this also applies to trade practises.
the bsa has a huge list of complaints they are struggling to cope with due mainly to cut throat competition for jobs by contractors and supplier imo- i reall don't have an answer for that one. lots of insurance payouts too. so thats going to add to costs.
the red tape, fees, forms, codes, new monthly regulations to comply and item completion certificates that use to be a engineer and roof trusses report now can number up to 15 to 20 and big stick waving add to costs. a small builder would need to stay a home one day a week to keep up with it all. now that,s a additional cost. i have absolutely no confidence in the bsa or state goverment- they have no idea of the reality for the domestic house building industry. i'm sure they think builders are taking $50 grand plus profits on basic lower cost houses
if you did complied with every single regulation and safty requirement you wouldn't get a contract and thats a fact. theres the stress if some do gooding goverment man decides he's got your number
geez its a house not a high rise.
stop giving building numbers to people that aren't at least trade.
not much can be done to stop spiraling materail costs, but the goverments can be doing a lot more instead of treating the housing industry as a cash cow
every interview i've read with builders states red tape as the main issue.
some major changes have to be implemented before houses become affordable- recession or no recession
Try to get a builder on the job!
