With COVID-19 and high construction demand creating a shortage of building materials, the costs of building a home are on the rise across Australia. And with demand for new developments skyrocketing, it’s looking like these prices are the new norm.
The restriction of overseas travel, including imports from major trade partners like China, introduced a shortage of building supplies. Supplies like steel, tiles, timber insulation, and special-order products have been delayed. This has created a supply and demand issue that is now costing homeowners.
Builders Raising Their Prices Due to Demand
The shortage of building supplies, and a spike in new home demand, has resulted in builder’s raising their prices. This has impacted potential homeowners who are discovering their house and land packages are suddenly more expensive.
In some cases, builders are raising their prices by $20,000 or more!
Unfortunately, this cost increase is being passed straight onto the buyer. Potential homeowners are being forced to find additional funds before builders are willing to get construction underway.
At No1 Property Guide, our builders have also raised their prices. And multiple packages that have already been negotiated are suddenly more expensive without warning. Unfortunately, as builders can raise their prices at any time, it’s something everyone has to deal with.
Unlike most house and land companies though, No1 Property Guide isn’t passing this price increase straight onto the buyer. We understand that many of our clients simply can’t afford a sudden increase of $20,000 or more. Which is why Darren Walters has decided to help out and reduce the price rise by as much as possible for every client.
Keeping the Costs of Building a Home Affordable for Everyone
To help reduce the burden on our clients, Darren is willing to cover some of the price rise for each and every client that has had a sudden increase in their new build. The price rise is different for each house and land package so there’s no set amount. But Darren understands that many of our clients have been desperate to escape the rental nightmare for years. So, Darren is determined to help as much as he can. Despite the costs of new home development being raised by builders across the country,
“Over the years I’ve helped thousands of renters become homeowners, so I understand their struggle to get into the property market. While the rising building costs are unavoidable, I want to do as much as I can for each, and every client affected. Which is why I’m willing to bear some of these new costs to help reduce the financial burden on my clients.”
Builders Tearing Up Contracts to Charge You More
On top of rising costs, many builders across the country are also finding ways to get out of, or cancel, contracts for projects. With a massive increase in property demand over the last year, many new homes have seen a huge increase in value during construction. Some homes have risen by nearly 100k during the build time alone. According to an ABC report, some potential home buyers are having their build contracts torn up by builders, due to delays in grant approvals causing them to miss finance deadlines. These builders are then turning around and offering them the chance to purchase the home—at the new market price. Some of these homes have been as much as $91k more than their initial build price!
This has caused many home buyers to miss out on their dream home, as they are simply unable to find the finances to afford the huge increase in costs.
Contracts with builders can be tricky, especially with deadlines from multiple different companies and vendors. That’s why No1 Property Guide has a team of experienced lawyers on hand to ensure every contract that is signed is fulfilled and completed successfully by all parties.
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We understand that changes can happen. Which is why we negotiate and coordinate between builders and clients. We also help to manage the build process from start to finish.
This expertise and care for every new home is why we’ve been able to work with vendors to meet deadlines and secure finance extensions for our clients. Despite builders and developers raising prices and doing everything they can to get out of build contracts.
“Over the years, I’ve seen many builders try to sneak in confusing or outrageous conditions into build contracts. With more than 20 years of experience, I know what to look for and what should or shouldn’t be there. But most home buyers don’t have that skillset. It’s vital you understand every aspect of your build contract. My team at No1 Property Guide understand this which is why we walk you through every aspect of the contract, so you understand it fully. And can then make an informed decision.”
There’s Hope Thanks to Darren’s New Home System
Even with the rising costs of building a new home, getting into the property market sooner is still your best option. Property prices tend to double every 10-15 years in Australia. So while it might cost you a little more thanks to these price rises, your new home could potentially be worth twice as much in a few years.
Don’t hesitate to contact our New Home Specialists if you have any concerns about a price rise on your house and land package,.