Browse Forums Building A New House 1 Nov 11, 2020 8:04 am Hi everyone, Yesterday we received notification that all builder's Home Owners Warranty insurance (HOW) premiums are increasing by 70% from January 2021. Currently for a $500,000 contract we are paying around $8,000, so that would mean that all things being equal premiums are going up by $5-6,000. I would imagine that builders are going to have to increase their prices to cater for this. So a heads up if you are getting close to proceeding with your favourite builder, try and get them to lock in the 2020 HOW price. Cheers Simeon Simeon McGovern Affordable Custom Homes, We design and build to your budget Ashington Homes www.ashingtonhomes.com.au Re: Massive Price increase coming in NSW for HOW 2021 2Nov 11, 2020 8:42 am You guys in NSW should pay more considering all the problems your building industry is having with apartments, ie opal towers, mascot , and others. In WA its 6K on a $500K build. LOL, Sounds like a new building Company may be considered a higher risk? OT, Why don't you put other building costs into perspective for comparison, eg. the industry pays Architects, building brokers and new home salesman 3-10% commissions ($15-50K) on your Half a million build. IMO, the insurance increases is not enough to bring the battlers and punters forward...I find transparency (ie Data and proofs) in the decision making process helps. Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Massive Price increase coming in NSW for HOW 2021 3Nov 11, 2020 9:04 am StructuralBIMGuy You guys in NSW should pay more considering all the problems your building industry is having with apartments, ie opal towers, mascot , and others. In WA its 6K on a $500K build. LOL, Sounds like a new building Company may be considered a higher risk? OT, Why don't you put other building costs into perspective for comparison, eg. the industry pays Architects, building brokers and new home salesman 3-10% commissions ($15-50K) on your Half a million build. IMO, the insurance increases is not enough to bring the battlers and punters forward...I find transparency (ie Data and proofs) in the decision making process helps. Cheers Chris Chris Unfortunately this has nothing to do with apartments. HOW is only required for dwellings under 3 stories. Its not just us that are copping the increase, its an industry wide thing. Apparently the insurer is still paying out for legacy payments for builders who have gone bankrupt and left carnage behind them, and also structural defects. So whether you are one of the majors project home builders or a smaller one like us, in the end everyone is going to cop it. I dont disagree with the need for insurance, as I personally feel that whilst the apartment builders have been doing some very shady things, the housing market is worse. have a great day Chris Simeon Simeon McGovern Affordable Custom Homes, We design and build to your budget Ashington Homes www.ashingtonhomes.com.au Re: Massive Price increase coming in NSW for HOW 2021 4Nov 11, 2020 9:19 am OT,.If people want to here the real effects of the Govt Builders stimulus here's an example , bricks have gone from $2.20brick to $3.00 brick The govt Stimulus isn't going to cover all the price increases and shortages Builders are pulling out & closing down displays here... Insurance becomes irrelevant if you don't want work Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Massive Price increase coming in NSW for HOW 2021 5Nov 11, 2020 9:21 am StructuralBIMGuy OT,.If people want to here the real effects of the Govt Builders stimulus here's an example , bricks have gone from $2.20brick to $3.00 brick The govt Stimulus isn't going to cover all the price increases and shortages Builders are pulling out & closing down displays here... Insurance becomes irrelevant if you don't want work Cheers Chris true as always Chris Simeon McGovern Affordable Custom Homes, We design and build to your budget Ashington Homes www.ashingtonhomes.com.au Re: Massive Price increase coming in NSW for HOW 2021 6Nov 11, 2020 12:45 pm StructuralBIMGuy OT,.If people want to here the real effects of the Govt Builders stimulus here's an example , bricks have gone from $2.20brick to $3.00 brick The govt Stimulus isn't going to cover all the price increases and shortages Builders are pulling out & closing down displays here... Insurance becomes irrelevant if you don't want work Cheers Chris $3 per brick? Is it real? Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 81734 Get some long brass machine screws and bolt right through the gate and put brass acorn nuts and washers on the other side. It will never come off 1 9083 Fair Trading can issue orders to rectify and complete but once the matter goes to NCAT these orders are automatically vacated. You will have to terminate contract and sue… 21 29759 |