Builder Goes Bust? What First Home Buyers Should Know

**What happens if your builder goes broke halfway through building your first home? It’s a scenario no buyer expects, but one that can leave you with an unfinished house, money already paid, and a loan that still needs to be repaid.** In this episode, we break down what can happen when a builder collapses, why even large and well-established builders aren't immune, and how rising construction costs, labour shortages and fixed-price contracts can put pressure on building companies. We also explain why a cheap quote isn't always a bargain, and what buyers should look for before signing a building contract. You'll learn how construction loans, progress payments and building insurance can protect you — and where those protections have limits. We also cover the warning signs to watch for during your build, including unexplained delays, unpaid trades, requests for early payments and communication becoming difficult. Most importantly, you'll learn what you can do before signing and what steps to take if something starts going wrong, from checking licences, insurance and company records to keeping detailed paperwork and getting independent legal, financial and building advice. Building your first home comes with enough uncertainty already. This episode will help you understand the risks, prepare for what could go wrong, and put better protections in place from day one. ## Episode Highlights 01:49 – Why Builders Are Going Broke 03:34 – Why Builders Are Under Pressure 06:18 – What Happens When Your Build Stops? 08:36 – Why Building Insurance May Not Be Enough 11:36 – Warning Signs Your Builder Is in Trouble 15:15 – How to Check Your Builder Before Signing 19:01 – Your Builder Collapsed: What Should You Do? 23:29 – How to Protect Yourself From Builder Failure ### Course Details: - **THE First Home Buyer Course is our Step-By-Step, No BS Guide to Every Stage of The Home Buying Process –** It’s the next best thing to having your own buyer’s agent. With our expert guidance, you’ll know what to do at every step along the way. Become a home owner faster and easier. Click here: https://homebuyeracademy.com.au/YFHBG If you enjoyed today’s podcast, don’t forget to subscribe, rate, and share the show! There’s more to come, so we hope to have you along with us on this journey! - Subscribe on YouTube: https://www.youtube.com/@TheFirstHomeBuyerCourse - Subscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/your-first-home-buyer-guide-podcast/id1544701825 - Subscribe on Spotify: https://open.spotify.com/show/7GyrfXoqvDxjqNRv40NVQs?si=7c8bc4362fab421f