Originally Posted by
duncan macgregor
The cost of building is the yardstick that sways the price pendulum back to a realistick cost price level. To pick the eyes out of the property market, requires you to understand the replacement cost structure value.
When the market shuts down with builders out of work, they simply leave the industry, or the country, which creates a shortage of builders, who in turn create a higher than should be price structure.
The Bricklayers in my area are undercutting each other simply to stay in work, the best brickies are now gone. Building red tape costs with compliance to keep up with the stupidity are still in a steep uptrend. The end result my friends is very obvious the price of property in the future will rise higher than the ten pc average in the last thirty years, unless the population flees to greener pastures. Macdunk[/QUOTE
Construction and material costs never realy come down or if they do its quite minimal. What has hit property prices the hardest is most likely the land its sitting on. A Clifftop with spectacular views may have fetched $5m 2 years ago but may only be worth $3m now. The building costs havent changed (unless it was subsequently found out to be a leaky) but the perceived land value has taken a huge hit in this area.