The housing crisis in Australia is no joke. Major cities are inundated with new residents and availability has plummeted. At the same time mortgage rates have increased and building materials are as well.
Rental rates have skyrocketed to all-time high prices. This pushes workers further from their place of employment to find more reasonable housing costs only to have increased transportation costs. The nationwide average rent is even up 8.5% over last year, which was already high.
Existing homes are full, 69% owner occupied and 31% rental. The only way to find a home is by using a professional broker or know someone who is selling.
New construction is bombing. The current size of the new home construction market is$170 Billion in 2024. It will grow to $225 Billion in 5 years. New construction can seem daunting but with the market the way it is, maybe it is time for a meeting with a builder.
- A builder will be able to secure land for your home. It is atypical to arrive with possession of land. Where are they building?
- Do they have any estates under construction? They can show you single or 4 bedroom home designs in the process of being built.
- Are any homes built on spec? Builders have large amounts of staff to employ. Rather than pay them to be idle during sales slumps, some builders will a popular style of home knowing someone will buy it. These workers are more skilled and produce better quality as they are controlled by the builder.
- Are they insured? What regulatory bodies and industry organizations certify their business and operation?
- Do they offer warranty packages on the construction, not only materials?
- Do they offer in-house financing? Some builders will want you to find your own financing through a bank or mortgage broker. There is a phased construction plan and associated payments and inspection of completed work for authorization.
- Are there after-construction service costs? What are the municipality fees?
- Will they give you contact information for recent happy customers? Testimonials can be written by anyone. A confident company will clear permission with satisfied customers for just this type of communication. Those are the reputable builders.
- Do they have sales or display homes for review and inspection? It is nice to walk through your proposed floor plan before it is built for you. Some have showrooms with window and door selections to choose from.
- Is your builder using subcontractors to save money? These workers answer to a different organizational chart and your builder may have less quality control.
The Australian government realizes the investment a home represents. They are more than money. They are where your family feels safe and grows. False or misleading practices in real estate are illegal, even if accidental. Complete disclosure is the standard.
Use caution when houses are advertised way below market value. Reasonable deals are proper business. Shortcuts to the inexpensive home of your dreams are almost always a long road to an expensive nightmare.
