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/biz/ - Business & Finance

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51369257 No.51369257 [Reply] [Original]

What will happen to the construction industry as interest rates rise and builders can't sell their overpriced cardboard houses?

>> No.51369297

>>51369257
I have 7 apartments that I rent out.
Wanted to buy 2 others and build a custom vacation house.
The guy that does the building told me he didn't want to get paid up front because of prices going up, he also told me to not buy the new apartments because it's a shitshow currently and is going to get worse.

>> No.51369559

>>51369297
I don't understand what the builders think they'll do. Are they just not going to build and go bankrupt?

>> No.51369703

>>51369559
Let's say I pay the builder $1 million to buy my vacation home, he won't buy all material at once.
Let's say couple months later he needs material but those price have gone up 20% his budget is fucked.

Builders will adapt to inflation and fluctuations just described in my case.

>> No.51369734

>>51369559
>I don't understand what the builders think they'll do
You pay them more or your property sits half empty.

>> No.51370181

>>51369734
>implying I'd pay for an unfinished product
I won't. Most won't. The builder can build to the point of occupation then sell or they can fuck off and go bankrupt. Its already happening that buyers are backing out of unfinished homes. This trend is only going up. Banks won't give buyers loans on unfinished houses anyway unless its a construction loan. No one in their right mind would go that route in this economy.

>> No.51370239

>>51369257
it collapses. it is happening in australia right now.