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Speaker 1: We've got some very encouraging numbers around the cost of

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Speaker 1: building a home. So call Logic's latest construction cost in

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Speaker 1: Dick shows us the price to build is the lowest

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Speaker 1: it's been since twenty twelve. So it's this good generation

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Speaker 1: homes bist. Craig Harrison's with us, Craig morning.

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Speaker 2: Good morning mate.

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Speaker 1: So it's not going back down, it's moderation at an

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Speaker 1: elevated levels. People sort of settled with the number and

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Speaker 1: feel good about building, or we've still got some way

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Speaker 1: to go.

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Speaker 2: We've still got a bit of a way to go.

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Speaker 2: I mean, our biggest competition is obviously the existing market

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Speaker 2: and that you know, you've got a very high level there.

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Speaker 2: It was about thirty three thousand houses up for sale

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Speaker 2: in that space, and there's quite a few of the

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Speaker 2: public that sort of have that I want it and

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Speaker 2: I want it now mentality, So that doesn't quite fit

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Speaker 2: into what we do. But as far as building a

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Speaker 2: house right now, it is at the perfect time.

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Speaker 1: How much do you deal with the individual like, you know,

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Speaker 1: the mum and dad investor or the first time buyer

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Speaker 1: versus a developer, and you build up fifty seven of them,

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Speaker 1: then you flick them off.

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Speaker 2: Generation homes is more about where we deal with the

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Speaker 2: mar and PA run people who are looking to go

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Speaker 2: into a home, who are wanting to build something for themselves.

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Speaker 2: We're not a developer of big scale where we tend

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Speaker 2: to work individually with each individual person and give them

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Speaker 2: their dream.

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Speaker 1: Really, what's your square meter? What's the square meter cost?

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Speaker 1: Roughly at the moment.

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Speaker 2: Well, that's very hard to say because it depends on

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Speaker 2: what you're building. You can get anywhere around that sort

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Speaker 2: of you know, three to four thousand dollar mark is

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Speaker 2: going to get you a pretty reasonable home, and then

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Speaker 2: you can also spend seven to eight thousand dollars a

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Speaker 2: SCOO meter to give you a home. So it really

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Speaker 2: comes down to what you're building, and yeah, sort of

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Speaker 2: the requirements that you were acquiring as a family to

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Speaker 2: live in.

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Speaker 1: Okay, do the message about it never being a better time?

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Speaker 1: Is this a long term thing? Do you think the

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Speaker 1: things that have been driving the inflation over the COVID

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Speaker 1: period and post that are settled for good?

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Speaker 2: Yeah? I mean I sort of hollo to a couple

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Speaker 2: of things recently around why it's good to build. I mean,

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Speaker 2: obviously the interest rates have come down and you you

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Speaker 2: sort of spoke earlier around you know, another drop in

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Speaker 2: the oci rate. So if you look at some of

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Speaker 2: your rates there, I mean a two year rate average

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Speaker 2: has been six point five one over the last of

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Speaker 2: the twenty years, and now it's down to four point

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Speaker 2: nine nine, So good time to do that. The supply

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Speaker 2: chain has indicated some potential increases coming in quarter to

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Speaker 2: and quarter three. You've got banks has now started to

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Speaker 2: sort of say hey, we're back into the lending space

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Speaker 2: and have dropped some of their ratios to make it work.

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Speaker 2: And then you've also got obviously you're at the bottom

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Speaker 2: of the market, so you have that opportunity to get

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Speaker 2: those capital games.

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Speaker 1: So we had the business confidence survey yesterday. Where's your

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Speaker 1: business confidence at right now? And going forward your positive

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Speaker 1: or negatable neutral.

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Speaker 2: Probably neutral for the next six months, and then looking

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Speaker 2: to be positive thereafter.

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Speaker 1: Good stuff, Craig, Appreciate your inside Craig Harrison, who's the

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Speaker 1: Generation Home CEO.

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Speaker 2: For more from the Mic Asking Breakfast, listen live to

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