Construction costs are currently skyrocketing

According to your explanations, this would mean the construction by general contractor is over in the end, because it loses its advantages. Whoever is willing to bear the risks for trade costs and completion date themselves has always done better with architect/special trades (done it myself).

Construction with a general contractor is not over, it just loses its advantages more and more. Exorbitant price surcharges or contracts / fixed prices that are not maintained. Prices are extremely high today. The general contractors also seem no longer able to guarantee the completion deadlines.

Booking package tours

Now I feel triggered yes I know in these times this is a minor issue for many but it somehow belongs to it.

Went to the travel agency yesterday because our online search was unsuccessful.

Turkey 2 weeks for 5000 euros.. for the same hotel we only paid 3200 euros last year. No it’s not one of the high-end hotels. And we earn well but I no longer see the point in paying that.

We ended the conversation Let’s see where the trip goes.

Maybe like in the old days with my parents to Lake Balaton..

I was just at a construction site of a bungalow house. A very nice conversation with the carpenters of the general contractor.

The roof tile manufacturer Braas no longer fires clay tiles. Only concrete roof tiles now. Wood is expensive. They are expecting significant delays, but so far nothing serious has happened. Of course, price increases and surcharges due to rising costs on many materials.

This company only builds with 36 cm wall thicknesses without ETICS. Very solid. About 300 people employed in total. I would recommend them unreservedly.

The builders have concerns about whether construction can even continue in a few weeks.

When they sign a contract, they order all the materials the next day, including the roof truss from the framing center. This way they can exclude subsequent price increases. A very reasonable way of working, in my opinion.

But it’s better to have experience with project management. I would never recommend a single contract award and working with architects to someone who cooks with a Thermomix and books package tours. I have not been doing project management in the real estate/construction sector since yesterday, but despite a team and a lot of experience, I notice that especially the coordination and planning of interfaces between the trades contains a lot of potential for mistakes. Most of our construction stops and the few processes we had to fight out revolved around the questions of who should have planned and noticed it and who messed it up.

We notice that too, right now. We awarded everything ourselves and are helping out properly everywhere. Almost more time is spent on coordination than on the construction site itself...

Everyone is fully loaded, it was a completely different situation before.

Because interest rates are likely to rise further and because the nominal interest rate is still below inflation. The 10-year fixed interest rate is also at 2.84% with 105% loan-to-value ratio.

But where is the risk if you are already paying 4% for the long term? After 10 years, the follow-up financing would presumably have to be closer to 6% than 5% for it to be worthwhile. If I then also consider what inflation does to the debt and loan-to-value ratios, if we really are at 6% in 10 years... Such a conclusion is simply destroying money. A 1% interest difference at 105% loan-to-value ratio easily means 500€ every month that doesn’t go towards repayment but only towards interest.

Turkey 2 weeks for 5000 euro

You almost can’t manage that even if you want to :) Or are you 10 people? Apart from the fact that I wouldn’t give Erdogan a cent, there are dozens of 5* hotels, top rated, in all sorts of regions for 2.5 - 3k for 2 weeks and a family of 4...

Sorry for the OT.