Browse Forums Building A New House Re: Impact of current economic situation on house building t 3Mar 12, 2020 11:32 pm wykdy I have the same concern especially on the coronavirus as well, worried if any gathering activities including construction will be banned in the coming 2-4 months. What should we do now! Go on ordering tender or postpone plan? Re: Impact of current economic situation on house building t 4Mar 13, 2020 7:22 am It's certainly not shaping up well on the health and economic front Remembering the last recession, land prices here were slashed. Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Impact of current economic situation on house building t 5Mar 13, 2020 8:27 am firstdream asset prices are falling and building product supply chains compromised. I suggest postpone until we have more information about the medical and economic impact of Covid19 unless the builders offer you tender and contract deals that de-risk your financial exposure in these circumstances. Re: Impact of current economic situation on house building t 6Mar 13, 2020 9:13 am Global death predictions are dire as are the number of persons expected to become infected in Australia. We are heading towards a Global Recession but not only because of COVID-19. There is a much bigger picture to consider that most still choose to ignore. It is only 66 days since COVID-19 was discovered in China. The World is moving fast on many fronts but Domino Effects take time. House prices are tied in with demand, the economy but most importantly land values. You already own the land and have secure jobs, your valuations are unlikely to substantially change in the short term. 3in1 Supadiverta. Rainwater Harvesting Best Practice using syphonic drainage. Cleaner Neater Smarter Cheaper Supa Gutter Pumper. A low cost syphonic eaves gutter overflow solution. Re: Impact of current economic situation on house building t 7Mar 13, 2020 2:52 pm My partner and I are in the same situation, and our plan is taking things slow and see how it goes. Worse comes to worst we also consider postpone our building for a a while just paying the land loan. We had our land settled in Nov, 2019, got loan pre-approval from bank for building, but our plan was held up by the first builder for too long at drawing stage, so we ended up with not building with them and starting all over again. We now have already signed the preliminary agreement a week ago with the other builder but I reckon as long as you haven't signed the contract you can always pause what you're doing at the moment. (but deposit is sometimes non-refundable) To be fair, from the initial planning stage to commerncement of construction usually takes 10 - 16 weeks, so our plan now is keep things moving but take it super slow and wait to see more information about the impact of virus/upcoming recession. If everything goes bad we will postpone the plan straight away. Re: Impact of current economic situation on house building t 8Mar 13, 2020 11:18 pm jillho My partner and I are in the same situation, and our plan is taking things slow and see how it goes. Worse comes to worst we also consider postpone our building for a a while just paying the land loan. We had our land settled in Nov, 2019, got loan pre-approval from bank for building, but our plan was held up by the first builder for too long at drawing stage, so we ended up with not building with them and starting all over again. We now have already signed the preliminary agreement a week ago with the other builder but I reckon as long as you haven't signed the contract you can always pause what you're doing at the moment. (but deposit is sometimes non-refundable) To be fair, from the initial planning stage to commerncement of construction usually takes 10 - 16 weeks, so our plan now is keep things moving but take it super slow and wait to see more information about the impact of virus/upcoming recession. If everything goes bad we will postpone the plan straight away. Hi Jilho, we requested tender from a couple of builders and no update since then. Would you mind letting me know who was your initial builder who took long time to draw plans? Please please pm me the name if you dont want to mention their name publicly. Re: Impact of current economic situation on house building t 9Mar 15, 2020 5:18 pm The simple fact is that we are witnessing developing human/economic catastrophe, and the world will never be the same again. No one knows what is coming and the severity. The best advice I can give is forget about everything else except survival. Try and keep healthy, do not overexert, take vitamins Level 1 survival: food water, clean air, safe place to stay (isolate), sanitary needs Level 2 survival: fuel, medical needs, masks, PPE Level 3 doctor/hospital care As the situation becomes clearer then you will be able to make further rational decisions Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Impact of current economic situation on house building t 10Mar 16, 2020 9:46 am building-expert The simple fact is that we are witnessing developing human/economic catastrophe, and the world will never be the same again. No one knows what is coming and the severity. The best advice I can give is forget about everything else except survival. Try and keep healthy, do not overexert, take vitamins Level 1 survival: food water, clean air, safe place to stay (isolate), sanitary needs Level 2 survival: fuel, medical needs, masks, PPE Level 3 doctor/hospital care As the situation becomes clearer then you will be able to make further rational decisions Can't agree more Re: Impact of current economic situation on house building t 11Mar 16, 2020 9:52 am firstdream jillho My partner and I are in the same situation, and our plan is taking things slow and see how it goes. Worse comes to worst we also consider postpone our building for a a while just paying the land loan. We had our land settled in Nov, 2019, got loan pre-approval from bank for building, but our plan was held up by the first builder for too long at drawing stage, so we ended up with not building with them and starting all over again. We now have already signed the preliminary agreement a week ago with the other builder but I reckon as long as you haven't signed the contract you can always pause what you're doing at the moment. (but deposit is sometimes non-refundable) To be fair, from the initial planning stage to commerncement of construction usually takes 10 - 16 weeks, so our plan now is keep things moving but take it super slow and wait to see more information about the impact of virus/upcoming recession. If everything goes bad we will postpone the plan straight away. Hi Jilho, we requested tender from a couple of builders and no update since then. Would you mind letting me know who was your initial builder who took long time to draw plans? Please please pm me the name if you dont want to mention their name publicly. I've pm you the name, but now we're with different builder and so far the experience is way better and you can tell different builder does do things in different ways. We got quotes from 3 builders after first one failed, and we ended up picking the local builder with 30+ year experience. Way more organised than the one we used to deal with but we might just being unlucky at the beginning not speaking for all the people build with our first builder tho. Re: Impact of current economic situation on house building t 12Mar 17, 2020 2:53 pm building-expert The simple fact is that we are witnessing developing human/economic catastrophe, and the world will never be the same again. No one knows what is coming and the severity. The best advice I can give is forget about everything else except survival. Try and keep healthy, do not overexert, take vitamins Level 1 survival: food water, clean air, safe place to stay (isolate), sanitary needs Level 2 survival: fuel, medical needs, masks, PPE Level 3 doctor/hospital care As the situation becomes clearer then you will be able to make further rational decisions Thanks for your opinion building-expert. Honestly cant agree more. However the situation can go in two ways and this is how each way may impact us (my family) Situation 1. Human catastrophe- I die or become crippled from the illness or become jobless (we are in the medical field, so death or prolonged illness may make us jobless); near apocalypse situation with a massive impact on human existence,bare minimal leaving----> thats the end of story for us and pretty much for everyone. Back to basic instincts Situation 2. Virus lasting 3 or 6 or 12 months in Australia (please God forbid): economic recession for 1/ 3/ 5 or 10 years duration. With the recession, people are still living, working if they have a job, having a economically damaged life -property prices fall- land prices fall, say 50% fall in land price in 1-3 years - The land is already mortgaged under our name. My husband and I will have to continue the mortgage without a home on it. We cannot get building loan and start building during the in economic recession as bank valuation will come very lower than what we bought the land for. So we will not be able to manage the shortfall and get a build loan unless the land prices rise back again- which may take forever At this point, we want to be prepared for situation 2. Already prepared for Situation 1 Re: Impact of current economic situation on house building t 13Mar 17, 2020 2:57 pm firstdream building-expert The simple fact is that we are witnessing developing human/economic catastrophe, and the world will never be the same again. No one knows what is coming and the severity. The best advice I can give is forget about everything else except survival. Try and keep healthy, do not overexert, take vitamins Level 1 survival: food water, clean air, safe place to stay (isolate), sanitary needs Level 2 survival: fuel, medical needs, masks, PPE Level 3 doctor/hospital care As the situation becomes clearer then you will be able to make further rational decisions Thanks for your opinion building-expert. Honestly cant agree more. However the situation can go in two ways and this is how each way may impact us (my family) Situation 1. Human catastrophe- I die or become crippled from the illness or become jobless (we are in the medical field, so death or prolonged illness may make us jobless); near apocalypse situation with a massive impact on human existence,bare minimal leaving----> thats the end of story for us and pretty much for everyone. Back to basic instincts Situation 2. Virus lasting 3 or 6 or 12 months in Australia (please God forbid): economic recession for 1/ 3/ 5 or 10 years duration. With the recession, people are still living, working if they have a job, having a economically damaged life -property prices fall- land prices fall, say 50% fall in land price in 1-3 years - The land is already mortgaged under our name. My husband and I will have to continue the mortgage without a home on it. We cannot get building loan and start building during the in economic recession as bank valuation will come very lower than what we bought the land for. So we will not be able to manage the shortfall and get a build loan unless the land prices rise back again- which may take forever At this point, we want to be prepared for situation 2. Already prepared for Situation 1 we are fairly young (early thirties) so we dont have huge assets which could help us meeting the loan shortfall during a economic crisis recession state. We have 2 IP, which we are selling to fund mortgage and extra build related cost. Re: Impact of current economic situation on house building t 14Mar 17, 2020 3:06 pm Norfolk @firstdream asset prices are falling and building product supply chains compromised. I suggest postpone until we have more information about the medical and economic impact of Covid19 unless the builders offer you tender and contract deals that de-risk your financial exposure in these circumstances. Thanks Norfolk, What bank told us is that if there is a recession, the land prices fall. When we apply for building loan, say after 2-3 years, bank will value the whole house considering land and build price, which may come much lower if the land price is valued at lower than what we paid this year (and already paying mortgage for a few week). We'll need to arrange the shortfall to fund the loan. We are already paying land loan from this month. Looks like it are caught either way, get build loan now, start paying but build will be delayed. Postpone build loan, may not be able to get a loan until the recession recovers and land price comes back to what we bought for. no way out for us as it looks like Re: Impact of current economic situation on house building t 15Mar 17, 2020 4:44 pm The virus is only the spark that lit the bomb fuse. The world was already on the brink of recession, there is already economic war of superpowers and if you add military conflict God help us. The WW3 has already started but no one noticed, hundreds of thousands of businesses worldwide are already casualties, millions of people are already financially destroyed. The Australian economy looks it will not recover for a decade. You are young enough to survive and if you do then there will be new opportunities arising from the chaos. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Impact of current economic situation on house building t 16Mar 19, 2020 10:12 am There was always some economic uncertainty prior to COVID-19, however COVID-19 will force the entire world into a recession. Could actually be a blessing in disguise, as a lot of the time, these economic downturns can reset everything in one big hit. Probably better to be 'forced' into a global recession by something random like a virus than have it eventually come crash down to world related financial problems. One thing that won't change for a while though, is population. Australia will continue to attract growth in population and there will always be a need for new housing. It comes in waves, but the demand for new house/land hasn't slowed a whole lot since 2011. Population growth has a lot to do with that. $395 Fixed Priced Landscape Plans for DA M: 0435 127 244 | W: bluegumdesign.com.au | E: info@bluegumdesign.com.au Residential | Commercial | Industrial Re: Impact of current economic situation on house building t 18Apr 02, 2020 10:29 am Look at the end of the day we have options: 1. Pay the land and wait 2. Go to tender stretch out the process (what I'm doing) till October 3. Hold the money in a bank with max interest Continuously re-evaluate You might be able to apply to divert the sewer at your expense. In NSW you would contact a Water services co-ordinator and they would give you advice as to whether or not… 1 16104 isn't a garage level with the rest of the house a given? pretty sure they 'came around' long time ago. if you have a flat block, the garage is usually level with the rest… 1 17400 2 5864 |