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Master Builders want to keep land expensive

By Tempestas 13 August 2008 21

ABC news online is reporting that the Master Builders are concerned that if too much land is released then prices might actually fall.

They are then willing to suggest that the cost of building has only increased with the CPI in the last five years, no doubt a comment soon to be withdrawn, as it highlights that they want to keep land prices and their profits high.

Lets see if the Government will reveal how much it is captive to this lobby group and restricts supply!

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Master Builders want to keep land expensive
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Tempestas 9:48 am 15 Aug 08

Al I was using numbers plucked from air. I was trying to point out that as a builder you build your profit margin into the price of what you do – ie building, that builders as wannabe developers also make money from the increase in land values is the reason the MBA is having a whine.

If as a builder, you can’t turn a profit from building then get out of the business and find a new way to fund your lifestyle.

Speculation and greed are key factors in land price increases over recent years and complaining about the party being over is a bit rich. Surely you can see that if more land was released, the demand for builders would increase, enabling the market to increase the profit of building. That the MBA is worried about this tells me that they are not interested in building, and would rather make money from speculating.

So as johnboy said at the start – they should be ignored.

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