A house of our own
Our first house was tiny, it didn't have a garage, a pantry, or a media room, but it was enough for us. I had not long started the business, things were tight. It was a small cottage in North Parramatta, the block had been developed with two units behind, we had a small courtyard.
I remember it costing $420,000. All the money in the world.
We had scraped and saved for years and we didn't have enough for the deposit so we had to borrow from family, we were lucky that we could. Even then, in the early 2000s houses were hard to buy when you were young.
Our first house came through sacrifice and hard work. It was hard but it could be done. That little cottage with its rising damp and weak air conditioning would set you back $1,000,000 today.
Something is wildly wrong.
Our youth, unless they have rich parents or two very high paying jobs have no chance of buying in Sydney. Even a poorly built apartment, bedroom sized will cost over $600,000. Not the greatest investment or starter home. How on earth did we get here?
Well first, we have to look at immigration and foreign ownership which fuels the raging price fire. Then at the ridiculous planning system, which favours product that nobody really wants in places that don't make any sense, that's right, suburban high rise. Then there's the supply crisis, which is government induced, Liberal, Labor state and federal. Spurred along by corrupt idiocy from Unions like the CFMEU (another topic entirely).
Nowhere near enough land is being released for town houses, duplexes and cottages.
Then there is energy rating, accessibility, and other regulation, most entirely unnecessary, some - ridiculous. All adds to the cost of new builds. Add insane COVID responses, triggering the greatest labour/supply shortages, escalating costs and inflation we've ever experienced.
Many great home building businesses have drowned in this perfect storm. Bad legislation and poor government has led to the worst crisis to have befallen the home building industry. Many great building businesses have gone broke - with no one to turn to. Building houses is tough enough, the overwhelming majority of builders take pride in their work and do a good job, while hoping to stay afloat.
They focus on servicing the customer, reputations die hard on social media. It’s tough out there and I think it’s time we all thought about where the industry will head, without relief from of the insane rules and regulations. We can't increase supply when builders are going out of business faster then they can build houses.
There must be an understanding from the public, specifically from the government that building people places to live is not magic and we are not perfect. The nastiest and most aggressive place in each state for any builder is the tribunal.
It is entirely consumer focused and staffed by people who have never swung a hammer, or had to deal with a client who simply chose the wrong colours and couldn't see that on the plan. Something's got to give, stop driving businesses into bankruptcy through insane hoops.
Many builders would walk over hot coals to save their businesses to get their clients the outcome they desire; a little bit of patience and understanding from the government wouldn’t hurt. It really is time we had a good look at the bowl of spaghetti that is the housing sector and make it a little bit easier to increase supply.
Australia is counting on it.
The joy that people get from home ownership, the families that are built in stable and secure housing, our national character and identity is tied to the home we live in it's where we belong.
The only way out is more supply and that means less government. To the builders, tradesman, agents, designers, architects, customer service/colours consultants and industry associations - make some noise.
Let Australia hear you!
We have a nation to house, a county to save.