Construction costs are currently skyrocketing

2022-05-19 06:57:29

Update on prices. We have an offer from a regional carpenter from January. New bathroom furniture. Offer of 14,400 EUR was too expensive for me. Yesterday a call from the owner asking if I was still interested. He has capacity available due to cancellations of orders. New price 11,000 flat! I took the deal.

2022-05-19 07:23:57

Yes, of course, living nicely is a value in itself. But let's take the example I mentioned. Rural hinterland in the western Lake Constance area, about 130sqm, 70s, oil heating, 200kWh/sqm, both bathrooms and the kitchen still original, for about 400,000€ (we have viewed several of that kind). That is certainly not the wet dream of every wannabe homeowner.
First, you sink 50k into incidental purchase costs. Then you renovate the house with the remaining equity: gas heating or pellets, new windows, bathrooms and kitchen. Maybe also insulate the cellar ceiling and the top floor ceiling. The facade is too expensive and will be postponed. The roof is still the original with 50-year-old concrete tiles. Now you pay 1,000€ per month at 3% interest for the 400k loan just to the bank, although you certainly put in well over 100k of equity, of which 50k is irrevocably gone. For that 1,000€ you haven't repaid a single cent yet and haven't built up any reserves for the facade, roof, street repairs, anything else that may come. That is not just a little irrational.
With 1% interest, however, it looked completely different. Then you could actually have paid off some of the house.

Wait, in your post you wrote "you can still afford it, but you just don't want to," and that is what I was referring to.

I believe that many people do not actually calculate this investment as such but rather the question is: can I afford it (possibly with compromises) or not. And if yes, then you just go through with it.

2022-05-19 07:33:33

Update on prices. We have an offer from a regional carpenter from January. New bathroom furniture. Offer of 14,400 EUR. was too expensive for me. Yesterday a call from the owner asking if I was still interested. Due to canceled orders, he has free capacity. New price 11,000 EUR flat! I took it.

Wow, I think the peak is over. Many still have work to do but are only finishing the "old" orders. I strongly assume that building materials will at least stagnate now if not even drop in price. Demand has simply collapsed…

2022-05-19 07:36:33

Update on prices. We have a quote from a regional carpenter from January. New bathroom furniture. Quote was 14,400 EUR. That was too expensive for me. Yesterday, a call from the owner asking if I was still interested. Due to cancellations, he has available capacity. New price 11,000 EUR flat! I took the offer.

That’s what you’d call "customer rip-off."
I would have politely declined. Bought plans/data (planning) for little money and asked 2-3 others. I would have done that beforehand anyway, but this shop wouldn't get a euro from me. (Except as mentioned above)

2022-05-19 08:27:39

We bought a Swedish stove in February. I insisted on a display model, better safe than sorry. It was installed on Friday (and the wood is also there). Yesterday the stove fitter was beside himself. The Swedes had just announced to him that he won’t get his Swedish stoves until January 23. He nearly worked himself to death before, selling up to 18 stoves a day.

Our family member, a master metalworker, has been buying his steel directly from the rolling mill abroad since the Corona crisis to secure the quantities. Last time, the steel that a locksmith needs the most was all gone. He had to take a more expensive alloy so he still has work for his people and stocked the warehouse full with every euro he could spare. When I remarked that ordinary people might soon no longer be able to afford a locksmith, he just said casually, yes, that’s how it is.

Best regards Gabriele

2022-05-19 08:45:07

That is probably what you call “customer screw-over”. I would have politely declined. Bought plans/data (planning) for little money and asked 2-3 others. I would have done that before, but this place would not get a single € from me. (Except, as mentioned above)

Damn capitalism! How dare he, according to the despicable principle of supply and demand, try to maximize profit. The man belongs sacrificed on the altar of communism. And then the audacity to lower prices during the crisis and try to win customers. That’s where the fun ends. Have you already informed the antitrust authority?

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Construction costs are currently skyrocketing

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