Building in a recession:What to think about
In times of uncertainty, many people are wondering if building in a recession is a good idea.
While the answers to the question is yes, and a strong yes that is, there are still added risks that you should definitely be aware of.
These risks can however be easily mitigated by asking the right questions.
We chat to Stroud Homes Sunshine Coast builder Daniel Chapman, who walks us through the advantages and risks of building your new home in times of recession.
The benefits of building in a recession is that generally there is less building work going on. As such, you’ll find that trades are generally more worried about retaining work so two things occur:
The same is true for the builder who is building your home. There are generally two advantages:
The aspect that everyone thinks is an issue during a recession is if the builder was to go bankrupt. Well strictly speaking, according to the ABS (Australian Bureau of Statistics) more builders go bust when they are busy rather than when they are slow.
Irrespective of this, if you are worried about the builder’s financial situation you can resolve that fear in one process:
Ask the builder for the contact details of the trades and suppliers that the builder uses and let the builder know that you want to call them to ensure that they have all been paid on time!
If the builder is anything less than proud to provide these details for you to run this check on the builder then you need to find another builder straight away.
If the trades say that the builder is behind by a week or two or anything other then, ‘they pay on time, all the time’, then you should do some more research. Hint: Good builders are very proud at how good they are at paying everyone on time every time.
It is scary how many builders think that it is okay to be a week or two behind on their payments. So, if a builder is a week or two behind on their payments they are already trading insolvent!
If you’re looking to build your dream home on the Sunshine Coast, Stroud Homes is a local and trustworthy builder who is more than happy to answer any of your questions.
Call Daniel and the friendly team on 0407 154 792 or send them a message below: