Construction costs are currently skyrocketing

Report from today in the FAZ: after purchasing land and receiving the final offers from the construction companies, many potential home builders only realize how much they would be overextending themselves with the current, increased prices. Consequence: "More and more average earners are returning their plots. They can no longer afford to build a house. Instead, others are building...."

The moment loans are no longer granted, the entire economic system collapses. The widely desired inflationary development is now penetrating the real economy. This only happens through loans. An artificially created shortage of goods and raw materials combined with an incredible expansion of the money supply promotes this development. I really don't believe in a sudden increase in demand.

There are too many things missing. Worldwide. Of course, this also has to do with Corona. We are in a war. That must be understood.
Corona came from the laboratory and inflation also comes, so to speak, from the laboratory. And no, this is not a conspiracy theory.

Corona was created to shut down the system. And that’s exactly what will happen,

I don’t want to say anything, but I heard that Elvis is still alive....

People simply have no sense of scale anymore. Or no understanding of numbers.

Example.

A builder today receives an offer for a turnkey solar system. Costs €20,000. If I buy the components myself, I have to assume about €5,000 in material costs.

The labor of a company with, let’s say, 2 installers takes about 1 day. That’s 20 working hours. Let’s calculate with a high hourly wage of €100 per installer hour. That makes €2,000 in labor costs.

So we come to €7,000. If we add a calculated 20 percent risk and profit, we’d be at €8,400. Adding an inflation surcharge and €1,000 extra profit for the contractor, we’d be at €10,000. The contractor would have more than €5,000 gross profit on such a system. But no, that’s not enough. It has to be €15,000 a day.

But that’s how it looks with all trades. The builder pays already, the interest is very cheap. I’m not surprised that many can no longer afford to build a house.

Or an offer for the exterior plaster complete. €20,000 with everything. Material costs €5,000. That leaves €15,000 for labor costs, plastering machine, and scaffolding. 2 people plaster the house in 1 week. So 80 working hours at €65 each. That’s €5,200. Again €10,000 that nobody can explain.

Or a foundation slab. Concrete costs €90 per cubic meter. Let’s say 20 m³ concrete, that’s €1,800 concrete. Maybe another €1,000 steel reinforcement, €500 sewage pipe. Construction with 4 people takes how many hours? 4-5 hours. Still costs €20,000.

People pay that easily and then wonder why the craftsmen finish so quickly.

If you then have it built by the developer or general contractor, they usually pocket the profit. Such a house quickly becomes €100,000 too expensive that way.

Your calculation is missing all the infrastructure costs that a business has. It starts with building costs including insurance etcpp chamber fees, work clothes etc and does not stop at the fleet and machinery. Tax advisor, advertising, IT infrastructure, cleaning, disposal…

So we come to €7000. So if we calculate an additional 20 percent risk and profit, we would be at €8400.

You forget the planning, the office and the time for it, the managing director, that is the boss of the 2 fitters, who somehow has to give away 50% of his profit, whether it’s taxes, depreciation on equipment, travel expenses along with the vehicle fleet, secretary and health insurance. Then liability insurance and all that stuff. Even I can recognize that as a blonde ;)

And the taxes are missing too...