It all over!!

StevieJ

Bean_Counter wrote: »

As a finance director for a construction company, things are NOT getting better from where I sit. From my experience and that of others I know, the only work from housebuilders is where they have properties substantially complete and need them finishing off. We have had no new work from housebuilders for some months and are not expecting any for say 18 months.

The bank are withdrawing funding for housebuilders even after they have agreed and I know of many many people losing their jobs in construction and associated sectors. My thoughts are with them and their families, as we have had many turning up at reception literally begging for work.

Having said that there is still construction work around, but not of the same quality and you have to watch debtors like a hawk.

It will get better, but not for a while.

Ah maybe you are the man, could you explain to me why housebuilders are in such trouble after 12 years of selling their land banks at ever increasing prices? Do they never provide for rainy days?

StevieJ

ultra10 wrote: »

:rotfl: So "Its over" ?? yeah whatever you say thriftygirl ... Truth is this has quite a long way to go ...

Do you make comments before reading the posts?

Bean_Counter

StevieJ wrote: »

Ah maybe you are the man, could you explain to me why housebuilders are in such trouble after 12 years of selling their land banks at ever increasing prices? Do they never provide for rainy days?

A very good question!

I do not work for a housebuilder and generally work as a subbie for the more small to medium size housebuilders so I can not provide a definitive answer. No doubt the answer is going to be a complicated mix of assuming property prices will only ever go up, assuming they will always get finance from the banks, paying ever increasing amounts for the land that they do build on, leaking too much cash on unnecessary overheads etc etc.

There are a few housebuilders who are not in such a bad way depending on their business model, but I think it is fair to say that they do not provide for rainy days.

thriftybabe

ultra10 wrote: »

:rotfl: So "Its over" ?? yeah whatever you say thriftygirl ... Truth is this has quite a long way to go ...

Thanks StevieJ you got in there just before me!

I have to say I am a pessimist (hope i spelt that right!) so I will always look on the worse however people keep saying "the goverment will need to do something". I do not think that they can do much. Sure they can right up a few proposals and it may help slightly - very slightly. The basics are the banks are not lending much and that is it. Surely until that changes not much can happen.

I saw this happen in Florida 2 years ago and my goodness it was hellish and still is. The property market and general economic conditions over there are horrendous and I think we are going to follow suit. The only thing is we are just at the start of this! :eek:

StevieJ

thriftybabe wrote: »

Thanks StevieJ you got in there just before me!

I have to say I am a pessimist (hope i spelt that right!) so I will always look on the worse however people keep saying "the goverment will need to do something". I do not think that they can do much. Sure they can right up a few proposals and it may help slightly - very slightly. The basics are the banks are not lending much and that is it. Surely until that changes not much can happen.

I saw this happen in Florida 2 years ago and my goodness it was hellish and still is. The property market and general economic conditions over there are horrendous and I think we are going to follow suit. The only thing is we are just at the start of this! :eek:

The problem is that the Govt pumped money into the system a while ago when it was not needed and now in recessionary times when they should be taking up the slack e.g. spending on schools,roads and hospitals they have no funds.

I can't believe that Ultra got a thanks

Microstar_2

Looking at the activities of construction companies local to me, I would say that they have been both profligate and greedy. I have little sympathy and I hope the govt (taxpayer) does not bail them out. They've had a lot of good years and plenty of time to get their business in order. About time the shareholders took some responsibility.
On the plus side, I have a couple of small contruction jobs that need doing on houses that I own. Maybe now I'll get the work done at sensible cost and they'll actually turn up to give me quote rather than making appointments and not keeping them.

fimonkey

!!!!!!? wrote: »

This is the 'Bull Trap'. People think that the existing pretty steep drop is 'it' and things can now get back to normal.

http://www.investopedia.com/terms/b/bulltrap.asp

In this case, it could be triggered by people's desire to believe that the new measures are the answer to their problems.

Don't be surprised at an apparent arresting of the downward trend, maybe even a short reversal, before we resume going down at speed. Anyone who buys in during that time is going to be extremely sorry that they did.

Ah wondered waht that was called.... has it happened in EVERY instance of HPC? I'm wondering whether I'll be the one that falls for it!

Amarillo

I was a little taken a back last week when someone asked me if I believed the credit crunch was real, as she thought it was media hype to scare us, to which I replied that I thought it was very real, knew people affected and that I personally believe it is far from over, she looked a little surprised at my response.

Two hours later her DH came in and said that he had spent all morning on the phone to the solicitor about their remortgage, the mortgage company were demanding that various loans etc were paid off (they took on a pretty substantial renovation and extension last summer) and because the solicitors weren't getting their act together they were about to lose their mortgage offer as they were about to exceed the time stated in the mortgage offer.

She looked slightly depressed at that point so I didn't like to ask if she still believed the credit crunch wasn't real.

LisbonLaura

I must apologise to the OP.

I interpreted the title 'It's (all) Over' as an armageddon comment

So I was all prepared to add the corny line

'You Banker Doesn't Love You Anymore'


...... then I read the thread

& decided I shall not be denied!

(just off to watch the Simpsons.......my kind of reality)

Bean_Counter

Microstar wrote: »

Looking at the activities of construction companies local to me, I would say that they have been both profligate and greedy.

Whilst not necessarily disagreeing with your sentiments, the term 'construction company' is too wide.

I have described myself as working for a construction company as a generic term. We are in fact a civil engineering company working as a main subcontractor or further down the foodchain. We work on very tight margins and I can assure you we are not, and have not been, making vast profits and often lose money on contracts. We do however make a modest return.

The housebuilders on the otherhand...