Thousands of construction companies go insolvent in Australia every financial year. Most of the collapses are small operators with thin margins and limited pipelines, not the established builders investors are usually matched with. In this explainer, an iBuyNew adviser breaks down how builder risk concentrates rather than spreads evenly, and what that means for anyone considering a new build or off the plan purchase.
Also covered: how deposit funds are protected in a solicitor's trust account, how domestic building insurance applies to house and land contracts, and why builder due diligence should happen before you sign, not after.
Topics: builder solvency in Australia, builder insolvency risk Australia, new build investment property, off the plan buyer protection, domestic building insurance explained, deposit trust account property, construction company collapse Australia, house and land contract risk, property investment due diligence.
iBuyNew has worked new build and off the plan investment across Melbourne, Gold Coast, Brisbane, Perth and Adelaide for over 15 years.
Speak with an adviser: https://ibuynew.com.au
Published on Aug 27, 2026