Construction costs are currently skyrocketing

What exactly did you win there, but above all: under what circumstances?

Simple example: If I borrow 1000k€ at 3% interest with 5% inflation and sell after one year, I have to pay 1030k€ and can sell for 1050k€, making a 20k€ asset gain.

The example is greatly simplified, but I think the principle is clear.

So we actually wanted to have a small barbecue area built this year. We are now postponing it indefinitely for financial reasons. The increased energy costs no longer allow it. I do think that others are in the same situation and that the demand for construction companies is correspondingly decreasing.

Simple example: If I borrow 1000k€ at 3% interest with 5% inflation and sell after one year, then I had to pay 1030k€ and can sell for 1050k€, making a 20k€ capital gain.

The example is highly simplified, but I think the principle is clear.

If one thinks that inflation is an absolutely effective factor, maybe. But the reality can also be that due to inflation in essential areas, the price of a luxury good collapses to 890€, because no one wants (expecting further shortages) and can pay more.

Simple example: If I take out 1000k€ at 3% interest with 5% inflation and sell after one year, then I had to pay 1030k€ and can sell for 1050k€, thus making a 20k€ capital gain.

The example is greatly simplified, but I think the principle is clear.

A large part of inflation is driven by energy costs. You usually don’t get a loan simply to invest it. What good is the enormous inflation if it is insufficiently offset by wage increases?

My boss continues to refuse an inflation adjustment; instead, there is a 150 euro fuel bonus, which is EXPRESSLY! not an inflation adjustment. He hates automatic salary increases like the devil hates holy water. :rolleyes: The company where my husband works (mechanical engineering) will not allow big leaps either; rather, short-time work is on the table. We notice in everyday life how money becomes less; that the loan is thus mathematically also less expensive is irrelevant at the moment. I would be interested to know what percentage of employers actually adjust generously to inflation.

So we actually wanted to have a small barbecue area built this year. We are now postponing it indefinitely for financial reasons. The increased energy costs no longer allow it. I think others are in the same situation and the demand at construction companies is correspondingly declining.

May I ask what you have? Gas, gas + solar thermal, heat pump, heat pump + photovoltaic.... ?