'Massive greed': How the construction industry entered a loss-making boom and why more builders will go bust

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The demise of Australia's construction industry was caused by speculation and greed, major developers argue, with more builders tipped to collapse over the next 18 months, leaving consumers in significant trouble.

Consumers had flocked to the market because of ultra-low interest rates and stimulatory COVID-19 pandemic support measures, such as the HomeBuilder grant, in the hope they could finally build their dream home.For many builders, some of which had signed fixed-price contracts and had not locked in their own prices for supplies, the loss-making boom has become too hard to manage. Some were driven to the brink and many have fallen over.

But the company went into liquidation nearly 20 months after she'd signed on, owing more than $20 million to more than 400 creditors, of which around $7 million are loans made to the business by the Langford-Jones family. "The first quote I've already had I'll be out of pocket $180,000 just to finish the build," she said.

The builder requested she pay for upgrades again in February, but she declined, given the frame had not gone up at that stage."I think a lot of companies have known they've been in trouble for some time and have just kept ... signing more customers up and taking their deposit funds," she said.

 

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VoteSustainable Builders go bust? The more the merrier! Meanwhile we are being told we have a tradie shortage. Extraordinary, though, this comes out of the ABC! They are one of the strongest supporters of this insanity, along with, less surprisingly, SBS!

I'm waiting for the whole property market to collapse. The great Australian dream is in turmoil

how good was HomeBuilder?

Only a matter of time before Blackrock and Vangard move in to take their share.

Yes reckon we will see a lot more of this … many firms would be trading insolvent and not telling customers until it’s too late

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