Building supply shortage — how does this affect you?
Watching your new house grow from the ground up is the exciting part of the first-time home buyer journey. The current building supply shortages hitting the country are causing several issues in the residential construction roadmap. This may halt you from building, but fear not, First-Place has mitigated the problem so we can continue to help first-time buyers build their homes affordably and promptly.
Below, we explain what has caused the shortages, the matrix of problems that affected other builders, how this might affect you as a first-time home buyer and how First-Place avoids significant delays and cost increases.
Why is there a national building supply shortage?
Over the past two years, we've all experienced our own version of curve balls and obstacles. While the residential construction industry has been at the centre of supply shortages and cost factors produced by the pandemic, First-Place has procedures in place to avoid current problems.
The construction industry has been strained over the past two years as interest rates reached record lows to encourage prospective home builders to make the commitment. On the supply side, building projects are impacted by consistently rising fuel, electricity and freight costs as well as labour and materials shortages in response to this increased demand and supply chain issues.
While first-time builders looking to enter the market may find this discouraging, you shouldn’t need to worry. These issues affect some types of home construction more than others, so using a builder like First-Place, who have designed their approach to get to site as quickly as possible, with fixed price contracts, means you can get ahead of others in your position and ignore the current industry concerns.
How does this affect you?
Let's not sugar coat it; some builders are having difficulties delivering projects due to supply issues, with a backlog of accounts growing larger and holding off from planning new projects until the end of the year.
The recent rise in material costs has cancelled existing building contracts because the building costs became greater than the budget. As a result, many smaller builders have been forced to close, further reducing the supply and labour resources.
It's a nuanced problem the country hasn't seen in quite the same way, so until supply chain issues are solved, homebuyers need to vet builders for their current capabilities to avoid delays and costs.
We’re builders that put you in First-Place
While the impact of this building supply shortage is a present reality, it's still true that the best time to build a home is yesterday. At First-Place, we're Victoria's Affordable Builder because we match unprecedented shortages with a network of unmatched solutions.
Our solutions include the same-day contracts that allow us to get started on your home quicker and procure materials in advance, backed by the second largest residential construction company in Victoria, AHB Group and the availability for site start on titled land. First-Place also limits the amount of homes they sell each year to ensure supply of materials as well as limiting how far into the future new home contracts are signed, which avoids being penalised with mid-long term cost increases and creates a more sustainable, future-proofed business which only benefits our customers. Whilst benefiting from the buying power of one of Australia's largest building groups, we don't carry the overhead of hundreds of display homes and layers of management - which allows us to simply offer an affordable product to our customers without the mark up.
We're here to support first time buyers in a competitive field, and through our transparent, affordable and simple building process. First-Place can help you can get ahead of the market and capitalise on your savings - get in touch to find out more.
Ready to build your home?
Check out our first home buyer guide for everything you need to know about buying your first home, including finances, grants, buying a land, buying a house and contract basics.
Price your home today with our home configurator, otherwise, give us a call on 1800 134 778 or enquire, and our sales team will get in touch.
Disclaimer
This advice in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs. It is recommended you seek professional advice from a financial adviser before making any important decisions.
First Place is not a financial adviser. You should consider seeking independent legal, financial or other advice to check how the website information relates to your unique circumstances.
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