Building costs can blow out

Met my builder on site today, he said we got the timing right.

He said steel framing has gone up 40%
Concrete 20%.

 

Update

my bricky is taking longer than expected, he cant get a labourer to help him so its very slow

unit 3 completed, unit 2 completed
Unit 1 will be completed in Jan

Just have to ride this, still no price increases for me, count my blessings

 

Hi @MTR did you choose steel frames due to timber frame supply/cost? Also how much extra you had pay for steel frames. and selecting steel frames with builder will require change in engineering design? thanks.

 

Glad to hear you haven't been impacted too badly. Was your partner going to play labourer at some stage? I take it that wasn't sustainable?

I do wonder how long it will take to flush this madness out through the system. My Facebook feed is starting to receive a few very limited builder ads again, so perhaps the pipelines going forward are starting to thin?

 

Lol
I talked him out of this…… seriously silly
His playing golf 3 times per week, I think this is the better option

No idea what will happen, however if build costs rise end product will also continue to rise, very nice

 

anything under $3 a brick isnt feesable for us brickies. after tax maintenance fuel tools and chiropractor visits youre still only making half decent money. ive just done 53 days straight 12 hpur days, without a day off. and yes very lucrative working that much, but not sustainable, elbows hands and shoulders are shot at the moment. in an 8 hour day you could lay on average about 350 FACE bricks. We had 10 years of laying bricks here for $1 a brick so brickies from over east can stay where they are... also to clear things up. Bricklayers ARE NOT CHARGING $3 A BRICK. we are given a purchase order by the builder, to tell us what the brick rate is. they tell us what the rates are not the other way round. theyre upping the prices to get bricklayers working for them. if the rates drop below $2.50 its not even really worth the Back aches another thing to consider, ive had emails from builders that require double Vax for their subbies from feb1. and I know ALOT of brickies who arent getting it and are anti vax, which will mean even more pressure on the builders and higher rates id say (i am double vaxxed) haha

 

I just heard some structural steel is about to go up 35% from February.

 

Not surprising

I think my actual building costs, 3 villas… has gone up around $200,000 last 12-18 months

I guess this means the product will go up? boom or no boom

My understanding is builders can pass on rises, however there is a cap??

 

In theory, yes.

Last cycle there were lots of overcapitalised new builds on the market, which then deterred people from building, which caused undersupply... price rise.

Rinse, repeat.

Ultimately prices are set by supply & demand, with the market for housing (& labour) very local whereas materials market is global.

 

Why you need to pick almost bullet proof areas and build what buyers want in this area. Not something you think they want. RE agents can really help with this

 

First week back on many projects.
I had a good chat with the boys and they are saying the cost blowout to continue to 2023.
This year 2022 is going to be tough for material and labour cost.
Supply chain delay is the main cause.

I know this is not the news you want to hear. But this is what I've been delivered.
Looks like I will not even start my splitter project till 2023 mid year.

 

wow

I am glad that my triplex will be completed by July/August

I wont be starting any new project in this climate

 

Yes, cost blowout is there. But it's for everyone. Key is to find good builder who does not rip you off. If U can do that, it's better to build as there will not be many new builds when time comes to sale and premium you command, will more than offset price increase.

 

Yes agree, its a double whammy also hard to source sites at the right price

 

Yes, completely agree. Sourcing site is difficult and on top of that build cost increase. Due to both of these factors, very hard to find sites which stacks up today.

 

[+] Omicron Pushes Out Supply Chain Issues to 2023

Found an article that says what I am hearing out about the cost blow out.
Incase anyone think I was just making crap up.

 

My bricky was hard at work this morning, nearly finished. Yay

However, @Gen-Y Supply an issue, waiting on all my timber, most on site. We can start on unit 3, 2
Rest of the timber to come in early Feb

 

Got to say delighted with my design, Mark Anthony is a star. Knows how to maximise space

 

haven’t read in full but I think it is common sense. Once borders open and people get ‘pinged’ (& sick), the workforce shortages will be massive.

“profitless boom” nails it.

 

Hi @Gen-Y what are the chances of construction cost going down to previous levels or somewhere close. Once the prices are up then might stay at that level for years , so will delaying the project ensure that in 2023 build cost might be less .