Do builders have a way of being able to live beyond means?

[Anon778833]

A friend of mine was married to a builder. They built their own 7 bedroom house and had expensive lifestyle and cars etc. then, when they split up my friend said there was not much equity to split. She's had to work extremely hard to get on her feet as a single mum. I had always thought they must be very good entrepreneurs but when they broke up they didn't seem to have very much.

I don't really understand how they had so many expensive cars before? Is he doing a number on her?

We have a builder friend who, along with his wife, would rack up loads of debt then reach a point where they would remortgage to pay it off. Happened quite a few times, so when they split there was little equity in the house.

Oh I see. When they were married my friend said that her dh would forget to invoice people for jobs so im sure that didn't help.

Yep agree with PP. Probably loads of debt, all borrowed on the never never, then when can't pay it off they've likely remortgaged .

The builders I know do cash in hand jobs and don’t declare all of their earnings but have flash cars, holiday homes. If her ex is showing the accounts that go to HMRC that might be why there doesn’t appear to be any money but doesn’t explain how there is no equity in the house.

I suspect the cars were leased and the house was mortgaged to the limit. Plenty of people live extravagant lifestyles on credit

In our old hometown, it was due to their sideline in Class As

Yes, debt was down to poor cash flow and mismanagement rather than extravagant spending.

It will be this.

This. It's rife according to exBIL who is in the business.

Builders selling class A drugs?? Really? These people have children. Why is it only builders?

They must save a fortune on a building work though...

😂 I don't think all builders are drug dealers. Lots of people have huge mortgages and cars on finance, not just builders 🙄
My dad was a builder and never did cash jobs, one fall out with a customer and they'd be straight on the phone to HMRC. Not worth it.

Many also delay paying their suppliers for months and spend the money on lifestyle instead. Oh, and not paying their PAYE/VAT and other taxes on time is another as they don't prioritise HMRC dues when they want a holiday or a new car.

Well every builder I know has a stunning house so I think that must be true!

The drugs business? 😂

I used to work in compliance for HMRC, discovered plenty of "hidden" bank accounts from suppressed takings that wives had no idea about sometimes 🤔..........

I know a woman in a similar position. Her builder husband was a massive risk taker and would mortgage their house up to the hilt and take loads of credit cards out in order to finance the next project.
The next project went Pete tong and it all crumbled.