Builders are supposed to be concentrating on affordable housing, are they not?

Question

Just down the roar from my house 45 new houses have just been 'slung' up, Prices range from £367,000. to £450,000, wages in our rural area £20,000 to £22,000. which means youngsters don't stand a cat in hells chance of being able to afford a house, who are the lunatics fixing prices this high, and no, it's not demand in my book it's profit! opinions most welcome

Answer 1

If there was not a market for these houses, they would not sell at those prices. The builder is in business to make money! If no one was willing to pay that amount, then they would be building those type of houses.

Of course the builder is looking to maximize the profit, that is what a good business does. They risk their money on the land, the materials and the labor, and then when the house sells they make a profit. If there was not profit in doing it, the would be no reason for the builder to take the risk.

Answer 2

What makes you think that builders are supposed to be concentrating on "affordable" housing? Builders are free to build to whatever market they wish. Obviously they have planning permission. You should have spoken up when that was on the agenda if you don't feel that it was an appropriate use of the land.

If the properties sell at those prices, then there certainly IS a demand for that level of property!

And of course it's motivated by profit! If you don't agree that business should turn a profit (which goes to help pay taxes and keep the wheels turning among other things) then move to North Korea where capitalism is forbidden.

Answer 3

Lets get this point clear, "builders are real hard dealing business people". Have you heard of a builder that has not made a profit on a job?

The properties you spoke about I imagine are going to have to of a high specification and quite large properties. Just trying to justify the price here.

As for the Government / local authorities talking about affordable housing that's a over played buzz word that is far removed from the builders everyday speech. Its this simple builders will build all the affordable housing that's needed so long as there is a over large affordable profit margin.

Answer 4

When's the last time you saw Santa Claus building a house?

Builders (except for Habitat for Humanity, which really doesn't build very many) are in business to make money. They are looking for best return on investment. Unless they receive special consideration from the government, this doesn't happen by building houses for low income people. It happens by building big houses on not very much land targeted at the well-to-do.

I'll believe people are serious about low income housing (which I have written articles about) when they start taking steps at the ballot box to make it easier for builders to make a profit on it. But what wins is "big bad development derailed because of sweetness and light environmental preservation."

Fact: Law of supply and demand. Look it up. Low supply plus high demand equals high price.

Fact: Every time someone wants to move to your area, someone else either gets priced out of housing or forced to move away, UNLESS there's enough housing there to accomodate the new arrivals. You want reasonable price housing? Make certain there's plenty of it. I'll do fine if the price of housing is high. What I make is based upon the price of what I sell and the loans people need to buy them. But the people who only make so much period are S.O.L. I can tell people that they're S.O.L., but I really don't like to. Do you?

Answer 5

Most builders would love to build affordable housing and would if the costs associated with building were not so high. Land, architectural fees, permits, insurance, construction loan fees and interest, equipment, materials, labor - if they try to sell the homes at the affordable price guideline pricing, it makes no sense for them to even think about sticking a shovel in the dirt.

Answer 6

Most builders/Building companies will build housing lots of 23 houses at a time. This is due to affordable housing only being provided when 24 or more houses are built. It sounds like they have somehow flouted this rule. We are a young couple with 2 kids and we have to rent privately. This is another thing that any political party with any sense will promise to resolve which will most likely give them the edge when it comes to election time. Another symptom of the joy that is Blairs Britain!

Answer 7

It may be different in your area, but typically, the buyer purchases their own window coverings. Sometimes there is an allowance given for window coverings, but not typically. This is pretty much because some people are happy with $79 mini-blinds from K-Mart and others want $5,000 curtains. Check your contract. Some Home Owner Associations require that window coverings be up within 30 days moving in (so the neighbors don't have to look at aluminum foil wrapped windows)

Answer 8

Builders are there to make a profit, and they will sell at the highest price one is willing to pay.

All developments over a certain size have to provide a number of dwellings to housing associations (not sure if its cost price or what).

Answer 9

It's not up to the builders per se! They're merely hired by the capitalists who are the one's out to make money.

You must live in a good area of your town if you're living down the road from the most expensive housing. Affordable housing are usually being built in the poorer sections (cheap side).

It's sad to say that poorer people have to earn their right to live in the capitalist (bourgeois) world.

Answer 10

Builders do not make money on affordable housing, they make money on houses that are built cheap and priced high.