Would you build with Metricon now??

Discussion in 'What to buy' started by Kushanda, 28th May, 2022.

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  1. Kushanda

    Kushanda Well-Known Member

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    Hello,

    I am almost close to signing a building contract Metricon….

    Given the current situation, would you go ahead with Metricon?

    Would you even consider building in this environment? Or you would buy existing instead?
     
    Kushanda, 28th May, 2022
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    No chance I'd proceed with Metricon until their crisis is solved. One of the worst things that can occur during a construction is the builder gets half way through and stops building. It would probably still get built eventually, but it could languish for years.
     
    Peter_Tersteeg, 28th May, 2022
    #2
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  3. southern-investor

    southern-investor Well-Known Member

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    If your looking for a newish property these days its safer to go with a 3-5 year old home than building right now imho.

    Building costs are soaring by the month and even finding the tradesman to do the work is hard. I'd rather play it safe with a already built existing home.
     
    southern-investor, 28th May, 2022
    #3
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  4. hammer

    hammer Well-Known Member

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    Nope. I wouldn't touch them with a 1000 foot pole.

    I wouldn't build at all if it could be avoided. Too much risk right now.

    Buy something already built.
     
    Last edited: 28th May, 2022
    hammer, 28th May, 2022
    #4
  5. The Y-man

    The Y-man Moderator Staff Member

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    They might be perfectly ok, but everyone else will be taking the "let's wait and see" or "let's not take any unnecessary risks" and then you have the vicious cycle where money stops coming in, can't pay people and suppliers, and it all goes bad .... a self-fulfilling prophecy :(

    The Y-man
     
    The Y-man, 28th May, 2022
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  6. Marg4000

    Marg4000 Well-Known Member

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    Signing with any building company at the moment is taking a big risk. All building companies face the same problems.

    Metricon owners have injected $30m into the company which should see them through their current cash flow problems.
     
    Marg4000, 29th May, 2022
    #6
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  7. wombat777

    wombat777 Well-Known Member

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    These larger builders normally have build times around 12 months post issue of construction certificate. In the current climate with shipping delays that could easily be blowing out to 18-24 months.

    It might take at least 6-12 months for material shortages to settle down so builders will face challenges for some time. I’d anticipate 18-24 months for backlog to clear.

    The delays will likely cause cashflow problems for builders to continue for some time.

    In 2013 my double story home was completed in 6 months.
     
    wombat777, 29th May, 2022
    #7
  8. jim1964

    jim1964 1941

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    I work for Metricon, and as some will know am currently building with them, 2 months from handover so not long now.Business as usual.
     
    jim1964, 29th May, 2022
    #8
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  9. JK DB

    JK DB Well-Known Member

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    I would absolutely not. The recent bad press will lead to canceled contracts and as a result - potential cash flow problems. It’s a self fulfilling prophecy. Also, if the stories turn out to be true - would you ever forgive yourself?
     
    JK DB, 29th May, 2022
    #9
  10. Tony66

    Tony66 Well-Known Member

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    Tony66, 29th May, 2022
    #10
  11. Tonibell

    Tonibell Well-Known Member

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    Wait for the big incentives.

    They have to do something major to get the business back on track.

    With all the smoke around they have a challenge getting new business.
     
    Tonibell, 29th May, 2022
    #11