Browse Forums Building A New House 1 Feb 01, 2009 2:04 pm When we choose our builder, I don't want it to nip us in the backside because they go broke as some are at the moment.
Any easy tips to work out if there is a chance this may happen? Also, I remember a post a while ago suggesting to ask for some report (end of financial report I think?) to check them out.... What report do I ask for, and what do I look for in it? What is the giveaway? Re: Picking a builder that won't go broke.... 2Feb 01, 2009 2:36 pm National builders are adversting a promotion where you dont pay until house is complete. I dont know how any company could afford to go without recieving any progress payments.
I would actually be worried about going with them. Re: Picking a builder that won't go broke.... 3Feb 01, 2009 3:25 pm borg National builders are adversting a promotion where you dont pay until house is complete. I dont know how any company could afford to go without recieving any progress payments. I would actually be worried about going with them. If you have not paid anything you've got nothing to lose :p Re: Picking a builder that won't go broke.... 4Feb 01, 2009 3:26 pm I guess your right. The worst case is that you have to wait for someone to complete your house.
Wouldnt it be great if it was like the onetel senario where they cancelled everyones contract. Imagine if they built 99% of your house before going broke. I dont think the administrators would be so kind to let you of, but wouldnt it be good. Re: Picking a builder that won't go broke.... 5Feb 01, 2009 6:52 pm If you look at Wincrest's financial info, everything was fine until now. I don't think you can predict what will happen in the future. They're all victims of the global financial crunch, unfortunately. It has a knock-on-effect: the developer's credit lines dry up, the builder doesn't get paid, and therefore can't pay the tradies, the tradies can't buy materials; etc. etc. I'm hoping that Wincrest will be fine once they're allowed to trade their way out of their problems.
Judie Re: Picking a builder that won't go broke.... 6Feb 01, 2009 7:55 pm mrs_smith When we choose our builder, I don't want it to nip us in the backside because they go broke as some are at the moment. Any easy tips to work out if there is a chance this may happen? Also, I remember a post a while ago suggesting to ask for some report (end of financial report I think?) to check them out.... What report do I ask for, and what do I look for in it? What is the giveaway? https://forum.homeone.com.au/viewtopic.p ... highlight= "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Picking a builder that won't go broke.... 7Feb 03, 2009 11:11 am Years ago I was working in a display home over the road from a builder who was being marketed by a large Real Estate company (I will not name) and all of the prospective buyers were whinging that my prices were 17k more expensive than over the road. I commented that I did not know how they could build houses for the price?
Several months later my builder was appointed to take over the HOW contracts for several builders that went belly-up and low and behold, there I was signing up contracts with all of these 'punters' who were now behind the 8-ball and paying so much extra because they thought they were getting a bargain but ended up paying more. I heard a Afrikaan saying on the radio the other day "Goedkoop koop is duur koop" or sort of translated, "you get what you pay for (buy cheap get cheap)" and it's the old cost versus price argument. I agree with an earlier post where companies like Nati0nal Build3rs advertising no progress payments! They're not the builder by the way, just a marketing agent but what is the builder doing to be able to afford to build the house - caveat emptor folks! Don't fall for the "Freebies" scam Re: Picking a builder that won't go broke.... 8Feb 04, 2009 2:17 pm most of these companies are private companies so i don't think you can get their financial statement.
the only protection you can have is to ask for building insurance which covers for these sort of things. make sure you actually see the certificate issued (i got given a copy) also you can go pay information providers to see their credit rating on the company as that would help. But if you do get to see their financials, look at their debt to equity ratio if its more than .7 i would be worried.... their cashflow statements would be interesting as well... good luck smeags. ---->Some say that a recession is when your neighbour loses his/her job while a depression is when you lose yours!<----- Re: Picking a builder that won't go broke.... 9Feb 04, 2009 5:05 pm Also maybe do a search on www.abr.gov.au - type in their abn number. It will tell you how long they've been registered for GST. If it is only a couple of years it may be that they've changed the name of their company in the last few years. Ask the builder why. Fi has moved in!! Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 20425 Hi, did you get any money from insurance? if you did, does it match what you've already paid the builders? 3 9571 |