Pizza and Property Weekly Slice 263: Massive Oversupply Coming? $1 Billion Government housing "Guarantee" scheme! with Rob Flux & Todd Sloan
Dec 9, 2025
Rob Flux, a seasoned property developer and founder of the Property Developer Network, joins Todd Sloan to dissect the NSW government's controversial Pre-Sale Finance Guarantee. They expose the true nature of the 'guarantee' marketing, shedding light on how it aims to alleviate hefty holding costs for developers. Rob explains how the initiative accelerates construction without long-term government ownership, boosts supply, and impacts pricing dynamics. This conversation is a treasure trove of insights for developers and investors looking to navigate the evolving housing landscape.
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Guarantee Is A Purchase Contract, Not Cash Backing
- The NSW pre-sale finance 'guarantee' is really a government purchase contract that satisfies lenders' pre-sale requirements.
- That contractual purchase speeds projects into construction without the months of pre-sale delays developers normally face.
Pre-Sales Cause Costly Delays
- Pre-sale requirements create long delays because early buyers wait to see when construction starts, dragging out sales momentum.
- Those delays add significant holding costs and can make projects unviable or push up finance costs.
Use The Scheme To Start Construction Faster
- Use the government's conditional purchase to avoid long pre-sale campaigns and start construction sooner.
- Expect the government to act as a short-term purchaser aimed at activating supply, not a long-term owner.