Construction costs are currently skyrocketing

for example, we only have 80 years and believe me: we can sleep very well with the small financing rate plus lease. If everything goes according to plan, we will be done in 5 years (a total of 14 years financing) and will have about €200 lease "to deal with".

€200 is your lease as of today. When was the last inflation adjustment? If it has not yet taken place, it can hit you at any time – another major disadvantage of leasehold. So you can assume that by retirement you won’t be paying €200, but €200 plus all the inflation from 2013 until then.

...

now lots of sympathy please!!

I am already feeling for you, even though it will only be happening to us soon. The screed has just been freshly laid and will be heated in January with a mobile heater. We also drilled.

A few more words about price increases...

Xella is raising prices by about 20% starting from 1.1.22. Brickworks as well. Here are a few excerpts from the price catalogs (officially published on the homepage): 2022 and 2023. Prices have risen by up to 80% - especially hollow bricks for interior construction... :eek: I have marked in red the bricks we have built with. Of course, not all interior walls were built with 11 cm bricks. For load-bearing walls, we used the 24 cm TS 1.2, for the garage the 17 cm TS 1.2. I am curious what the shell construction would cost us in 2023?

All plants are doing it in unison from January... Partly hidden by different increases in surcharges (toll, crane unloading, energy surcharge, ...) Wienerberger, for example, also has 20% overall. Creaton, as a large roof tile manufacturer, for example, is making 12.5%... That will be really tough at the beginning of the year. Concrete is becoming 30 euros per cbm net more expensive, which in most cases is over 40%, since in many areas the base price of concrete is still below 100 euros. Additionally, toll, diesel, energy, and during the cold season also with a seasonal surcharge. Depending on the region, you then easily end up at 150 euros per cbm upwards...

Creaton as a large roof tile manufacturer, for example, makes 12.5%...

Creaton too? ufff... Thank God, we had the roof covered in November.... Creaton Domino (clay roof tiles).

We will see then how much is built next year. I believe the big slump is coming then. Of the 400,000 apartments that the traffic light coalition had as a target, we will then be very far away. Maybe, due to existing orders, we are still at 300,000 apartments in 2022, but 2023 will bring the big bang. Then you might end up with 200,000 completed apartments or even less. Because who wants to build under these conditions (high interest rates, high inflation, high construction costs) anymore. The consequence will be insolvencies in the construction sector and at least a stabilization of the high price level (it's called supply and demand). And existing properties that are not yet a hundred years old will increase in price. Because new construction will still only be for the top 10%, and the others will be flocking to the young, well-maintained used properties with forty years on their backs.

I am already suffering with you, even though it is only imminent for us shortly. The screed was just freshly laid and will be heated in January with a mobile heater. We have also drilled.

At my place, heating with Hotboy has been ongoing since Monday. I can give you an update tomorrow on what has happened so far. The drilling has been there since May, but it is not allowed to be used for that because of the risk of freezing. As far as I know, the heat pump is not there yet either ;)

And you get the corresponding value if you don't want more.

You don't get that at all. The legal minimum is two thirds; there is zero incentive for the lessor to go beyond that. A fair approach would be to set at least 90%.
Some of the existing contracts will also expire in the coming years, and then again in the 40s and 50s. It will be interesting