I am not even refering to land that is a different story and I do think that it is was overvalued but as I understand there is about $70k worth of government fews and charges for every block developed and then you have the purchase cost and then the actual development costs on top of that, and then you need to make a margin or your not in business. And I think people forget that, if the developer of builder cant make an income then they wont be in business. When was the last time people askes Macdonalds for a discount or hit them up for the amount of income that they make.
Anyway back to building the big suppliers have been killing us over the last 5-7 years. Last year was the lowest number of houses approved in 11 years and Boral gave a 20% price increase in bricks not 3 or 4%. Concrete is a killer and only going to get worse with the carbon tax. But labour is the problem, but tradies have to make an income or they wouldnt do it. No one quesitons the lawyer whne charges $300 an hour but when an electrcian says he is $60 and hour it's an outrage. Point being people forget that you have to make an income to live just like they do but at the moment they expect everything for nothing epecially in the building industry.
