Construction costs are currently skyrocketing

We were at the model home park of Viebrockhaus 1.5 years ago.

Yesterday I received an email..

as you have probably already noticed, there are currently massive price increases and repeatedly delivery bottlenecks for building materials throughout the entire construction industry.
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However, we are also affected by the price pressure caused by the shortage in the market. Therefore, unfortunately, we will not be able to continue the agreement of an extended fixed price commitment for a construction start until 31.10.2022. Rather, it is to be expected that we will have to charge an economic surcharge for new contracts with a construction start after 01.07.2022.
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To still benefit from the existing prices, a timely contract conclusion is worthwhile.

For all those who have not signed yet, some pressure is being built up somehow..

They also arrived for me yesterday. Similar ones from Kagebau, Ecosystemhaus, Little-Family-Home, and Haus Compagnie.

I think the topic is only now reaching the media. This will really hit some home builders hard. Let the delivery delays go on for months in some places... Then it will unexpectedly become more expensive for some with provision interest as well.

Just talked on the phone with a structural engineer friend. His phone is ringing non-stop. "Can you just give me the approximate quantities so I can order? If it turns out a bit more or less later, it's not a problem, I'll account for it."

And he mainly works in commercial construction.

I've heard similar things about KG pipes.
Wood prices are now sometimes only valid for weeks or days.

Sure, there's a toilet paper effect involved. But that doesn't help anyone who is building right now.

I am currently looking at OSB boards. I wanted to buy some to protect my already delivered windows. However, I couldn't arrange transportation and the delivery is too expensive. Within the last 3 weeks, the price has almost doubled from 9 to 16 EUR/m². Now I am even considering ordering a whole pallet and selling off the remaining quantity...

If it crashes shortly before retirement and halves your assets just like that, good night ;)

To recover from such a crash (among other things by buying on dips) you need cash and above all time. Both tend not to be available shortly before retirement.

Certainly not everyone will be well diversified and regularly shift into safe asset classes.

How long did it actually take for the indices to recover after the recent "crashes"? 1 to 3 years. I can also wait this out in retirement. The V-shaped recovery after the last crash was even faster...

Accordingly, it does not matter if I have a 50% paper loss in the short term, as long as I do not realize it and, as mentioned above, have 1 to 3 years of time. I simply assume that anyone with a correspondingly large portfolio shortly before retirement has been on the stock market for a long time and has therefore experienced several such setbacks and will consequently not get nervous. Furthermore, I see the portfolio as one building block in the overall asset portfolio — keyword risk diversification. Another building block, in my view, is one's own property.

For all those who haven't signed yet, there is already some pressure building..

Would you prefer it if, upon signing, it said: "Sorry, we now have to raise the prices first."? I think it’s rather fair to warn the interested parties in advance. These providers probably can’t do much about the price increases anyway.

At the moment, somehow all products related to construction are affected. I read the information from our purchasing department today about gypsum boards and mineral wool. It doesn’t look any better there. Long delivery times, if you even get what you want.