Home Building Costs Might Escalate In Coming Times
Are you planning to build a new home for yourself? Well! The time is just about ripe and you would be better off getting it built quickly enough. You may think why is this need to get it done quickly? Instead of taking a long dig at the answer, let me answer it straightaway for you.
The home building industry is finally on a move and it will impact the labour costs in a big way. Owing to the circumstances that we have faced in the last few years, the labour industry has all but lost interest in the home building industry and thus it would be difficult to attract them once again- not without raising the labour costs at any rate. So you get it, right?
The home building industry has passed through tough times
The home building industry has passed through a near Doldrums phase when there was no traceable movement for quite some time. During the second quarter of 2012, residential building development had taken a dip of 3.1% and their renovations had fallen by 3.6%.
A Survey that points towards builders’ despair in the past
A startling survey (with more than 500 respondents) yielded that builders felt they were trading in rougher waters than they had done in times of the global meltdown.
Builders had virtually nothing to show over this period. Their sale tally, profits, traffic at the display centre and book entries were at ebb. Builders and contractors were forced to take projects at negligible profits.
This world runs on hope and till hope is there, the human race keeps fighting.
The home building tide has reversed
Things improved in the September quarter. Home building approvals shot up by 7.8%- a figure that was a cool 12.4% higher than the figures for September quarter 2011. The tide has well and truly reversed now and the Federal Treasury as well as the Reserve bank of Australia is optimistic about the immediate future.
I agree with their opinion in regards to the main drivers of growth. Let me propose them in bullet points.
- Population surge in recent times
- Rental industry in a tight spot
- Sustained climate of low interest rates
- Growth in expected income
- Lowest inflation rates in recent times
- Keenness of foreign investors
Labour industry might cause a hike in home building costs
In a nutshell, the industry is well and truly recovering but it will have to give bait to the labour force to attract them nonetheless. To offset this cost, they may have to raise the home building costs. At the moment, we are in a “quite manageable” phase and it would be prudent to get our homes built before the price stickers become really high.
Are you planning to get a home built for yourself in near future?