Browse Forums Building A New House 1 May 10, 2022 4:31 pm Hi, I jus got a quote from my builder and the quote has nearly doubled from the earlier quote which was given few months ago. The reason for that is that steel, timber and insulation prices have apparently gone up by 50%. That has taken our price atleast 200k above the initial quote. Is that been the case with all custom builders from your experience? Thanks Re: New home building Melbourne 2May 11, 2022 8:19 am Hey Glitzz Welcome to the forum, LOL town square? Looks like your builder is jumping the gun a little with contract price increase variations, I hope you haven't signed a contract as yet. You might want to check on his cash flowing abilities and credentials? We have seen 25% increases across the board which translate to $100K on the average 1S house another +$100K will soon be the new norm, once you factor in another 12 months of shortages, hyper inflation, wage increases, economic mismanagement, decline A$ etc,etc. Goodluck Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: New home building Melbourne 3May 12, 2022 7:48 am StructuralBIMGuy Thank you so much for providing that insight on the market. I have not signed any contract yet. Which is good, we have started shopping around and see if what other quotes we can get. From an article I read it says don’t expect the market to come down rather the increase will slow down a bit. https://www.afr.com/property/commercial ... 430-p5ahdw Re: New home building Melbourne 4May 12, 2022 10:34 am Glitzz I have not signed any contract yet. Which is good, we have started shopping around and see if what other quotes we can get. Good for you, Salesman will be desperate to have you sign up and builders will avoid give you any data and firm quotes. Glitzz From an article I read it says don’t expect the market to come down rather the increase will slow down a bit. https://www.afr.com/property/commercial ... 430-p5ahdw Journalists quote abs data, I'll believe a journalist when I see one towing a trailer full of tools heading for a worksite. (humour) Interest rates are increasing, prices will drop. The greatest motivator is an empty belly. Though i've yet to see influences turn up on site looking for work and lunch... but that day will come. You need to keep an eye out for the real building data and proofs. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: New home building Melbourne 5May 12, 2022 3:22 pm StructuralBIMGuy Interest rates are increasing, prices will drop. as interest rates go up, borrowing power decreases for a vast majority of people. Lenders asses at a stressed rate of 2.5-3% above advertised rate (if the loan is for 2%, you're being assessed at 4.5-5%) to ensure you can weather rate rises. So unless the price drops outstrip the rate of rises (unlikely) then most people, especially those without equity or other assets, will actually be worse off yet again. With prices going down, rates going up, high LVR loans are less attractive for banks to fund - risk of negative equity being the driver. So sure Interest rates will lower house prices, but that doesn't mean they will be more affordable or accessible. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: New home building Melbourne 6Jun 29, 2022 10:28 am Glitzz Hi, I jus got a quote from my builder and the quote has nearly doubled from the earlier quote which was given few months ago. The reason for that is that steel, timber and insulation prices have apparently gone up by 50%. That has taken our price atleast 200k above the initial quote. Is that been the case with all custom builders from your experience? Thanks Hi Glitzz A change in the price can only be made in accordance with the contract and law. If you believe that the price increase is not lawful, then you should take steps to enforce your contract, and escalate through the DBDRV and VCAT, if you’re in Victoria. Cheers John Get sound legal advice. We manage Building Disputes, Construction Contracts, Security of Payment. PM for queries. https://www.contractsspecialist.com.au/articles/ I ended up going with 'Andrew Belic Construction Co.' https://www.instagram.com/andrewbelicconstruction/ 2 60095 Hi, can anyone recommend a custom home builder who can build in north east area? Looking to build a custom 4-br energy-efficient home with a max budget of 750k. If they… 0 23391 Is it just a report written to give to the bank initially and it is based on what and how your payments are made up for, or is it a full service where they go out and… 2 5944 |