Homebuyers could be the cost solution for construction industry

Homebuyers waiting for their dream homes could help construction companies like Metricon stay afloat under a new proposal to help the industry winthstand rising building costs.

New homebuyers waiting for their properties to be built may be asked to load up their mortgages with higher building costs to ensure their projects get finished.

The state government is considering bringing lenders, home builders and consumers to the table in the coming weeks amid a looming crisis in the construction industry.

The talks have been prompted by concerns about construction giant Metricon, which has more than 350 ­active building sites across the state.

While the company maintains it is able to withstand soaring material costs as well as labour shortages, the government has turned its attention to the 35,000 other building sites that may struggle to complete their projects.

“The average cost solution for a home yet to be built could be about $10,000,” a government source said.

Homebuyers could be asked to add extra cash to their mortgage to help building companies stay afloat. Picture: Supplied.

“What if the banks agreed to an automatic one-off $10,000 increase on those loans?

“That would allow customers to pay their builders by having a bit of headroom in their mortgage.”

Many builders who locked themselves into modest contracts in the past 18 months are feeling the pinch of an ­average 10 per cent increase in building costs, according to the ABS.

A pandemic and unprecedented rainfall have contributed to the problem.

Another senior government source said talk of the NSW government bailing out a national company like Metricon would be impossible.

“How would you ensure NSW taxpayers did not end up paying for Victorian problems?” they said.