We're building towards a home construction boom

Blue Card! said:
a bit of clay or a lot of clay?

prices vary wildly, if it's just a bit a half metre down, a little fill will put you over it and not cost much.

if it's 100mm under the surface, then expect an S or M detail - add $15k per house min. you should see the reo they use in some of these footings....!

i can do some cheap 3x2s for about $155k turn key + site costs (usually around the 10-12k mark).

who's your builder? sounds to me like you can't get finance - end of contract.
Click to expand...

A bit of clay, we must have answered at the same time. I haven't chosen a builder or done any plans or costs.

What would be approx size of units (3x2's)?

I think I could most likey get finance. Bank mentioned I could always sell another established property if I got stuck. ( which ultimately I don't want to do). And financial position is slightly better than when I met bank a couple of weeks ago. I guess i have to do more spreadsheets to prove I can afford to do it. Ta.
 
yeh I used dale alcock and because there is a lifetime structural warranty he goes over the top a bit on the engineering. I think we were 600mm too, or maybe it was 1000, cant recall now. that's a lot of clay to remove and replace with fresh fill!
 
600mm sand pad ABOVE clay or deliterous material - if the clay is 500mm down, you only need 100mm of fill.

$155k turn-key would be a 3x2 DG with about 100sqm of living area and 36sqm of garage/store with a small porch and 2.5m x 3m alfresco.
 
time for the new chart shadow,
not much has change with overall lending stable but with the usual austrlia unique situation of rising lending to home owner and shrinking to businesses...:confused:
 
Treasurer Wayne Swan in push to free up housing

http://www.heraldsun.com.au/news/tr...-free-up-housing/story-e6frf7jo-1225844981179

TREASURER Wayne Swan is taking on the nation's housing squeeze.

He is calling on the states to set out a timetable to release more land and strip back planning and zoning bottlenecks.

The Government has been told the nation faces a housing shortfall of 400,000 by 2028...

Mr Swan wants the states to agree to a timetable for:

OVERHAULING zoning and planning processes.
BETTER land release targets.
NATIONALLY consistent infrastructure charges.
GREATER consistency in local government approvals...

"Unless constraints to the supply side of the market are addressed, our cities will not adapt to meet the needs of a growing population and we will see continued problems of affordability for ordinary Australians."
Click to expand...
 
Swanny is a Joke,
building companies are still busy building the infrastructure he committed in his last budget to worrie about new housing jobs (or building houses for cheaper profit).
Don't really care what he said, I'll just watch what he does and spend taxpayers money
 
As I understand it's the poor margins holding back developers. So will this increase margins? If so it will have to be on the cost side - so decreased land values and perhaps some lower costs with less red tape.

But if land values decline in these release areas, aren't those currently land banking on farms or large plots on the metro fringe areas, going to be averse to selling?
 
bene313 said:
As I understand it's the poor margins holding back developers. So will this increase margins? If so it will have to be on the cost side - so decreased land values and perhaps some lower costs with less red tape.

But if land values decline in these release areas, aren't those currently land banking on farms or large plots on the metro fringe areas, going to be averse to selling?
Click to expand...

For sure margins are a key factor. I don't think land banking and land value on fringe of cities is the key problem.
I woud compare wages in building industry with long term trends and with other countries. We need a healthy slow down in the building industry to bring back wages into reality and long term trend. aLso building businesses will benefit in the long term
 
A slow down in building isn't going to increase housing supply like Swanny wants. Instead we'd have upward pressure on house prices which boosts the developer margin leading to more builds.

So is the answer increased house prices while land stays constant (or declines)..?
 
bring on the contruction boom i say.
I will benefit both ways, firstly from equity prices, secondly from picking up distressed property at some point in the future.

Suits me perfectly.
 
seems like the construction boom is probably not towards new homes

The Housing Industry Association’s (HIA’s) New Home Sales report, a survey of Australia’s large volume
residential builders, showed a 5.2 per cent dip in sales in February 2010 following an encouraging start to the
year in January.
Click to expand...
HIA
the housing industry is calling for new much needed help.
I like:
“In terms of the entire new home building market we also need to see urgent rectification of the unjustifiably
low level of finance being extended to small residential developers. Credit rationing is choking off perfectly
viable residential projects and pushing households, who aren’t suffering from significant restraints on credit,
towards the existing property market,” Harley Dale said.
Click to expand...
funny that he is right but on the other hands can't say in Australia banks are not lending enough (ask RBA for that).
Also I am sure banks have a reason to direct finance in one place instead of another...
may be we need the government to step in and directly lend money to developers?;)
 
how about a society for the purpose of building (callit a 'building society)? or a rural and industries bank?

oh that's right - been there done that, the 4 bank mafia own them all now

the govt should just keep spinning them off, can do that all day long.
 
We must do better on housing supply, says Wayne Swan

http://www.theaustralian.com.au/new...-says-wayne-swan/story-fn3dxity-1225882473579

We must do better on housing supply, says Wayne Swan

* From: AAP
* June 21, 2010 9:37PM

AUSTRALIA must do better in the supply of housing - a supply gap that could grow to 600,000 by 2028/29, Treasurer Wayne Swan has warned.

Mr Swan told a Property Council conference in Canberra that the National Housing Supply Council estimates the country's housing stock is currently short of 178,400 dwellings....

...

He said reasons for this supply shortage were impediments created by various regulations, slow planning and zoning processes, and complex, uncertain and time-consuming systems for charging developers for infrastructure...

...

"I'm determined to see the Australian government play a role in reforming the housing market for the long term, embedding better practices in planning and zoning and developer charging," he said...
Click to expand...
 
Here comes Shadows construction boom and $m median house prices!!

@rpdata: In New South Wales, dwelling commencements are now 25% lower than the decade average.

Oh wait.... :p
 
hobo-jo said:
Here comes Shadows construction boom and $m median house prices!!

@rpdata: In New South Wales, dwelling commencements are now 25% lower than the decade average.

Oh wait.... :p
Click to expand...

And then there's this...

Breathing life into Aussie property

Chris Joye said:
The essential polarisation between the underlying, and positive, economic growth pulse in Australia, and the snowballing turmoil in the eurozone, was highlighted by yesterday’s construction work data. In the third quarter this key component of GDP confounded pessimists, rising by an incredible 12.5 per cent (the largest result on record) in comparison with market expectations of a 2.0 per cent increase. This has the potential to increase the third quarter real GDP print by an amazing 1.7 percentage points, which would be a stunning result if the final numbers get anywhere near it.
Click to expand...

Too busy elsewhere, but give it time...

Cheers,
Michael
 
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