Construction costs are currently skyrocketing

The order books are still full, so far no client has backed out or stopped the construction.

I’m not surprised by that either. However, I assume that the incoming orders will decline significantly. The clients who have already commissioned the general contractor usually already have secured financing. So far, those who have had to back out mainly had not yet secured financing and, I think, cannot keep up with the interest rate increases. The problem of inflation combined with higher interest rates will now slowly but surely reach the general contractors and then become noticeable next spring. This year, due to the long processing, delivery, and lead times, it is simply already at capacity for most.

A fixed price is a fixed price and remains until handover.

I interpret this to mean that the price increases from the other home builders are windfall effects.

With their price expectation, it would be 266k + additional costs = approx. 285k

Are roughly 500k € so much for the house? Well, it depends on the standard and size. But if you take 140 sqm * 3,000 €, that's already 420,000 € + ancillary building costs, etc. I don't find it that much for today's times.

I was just at the building materials dealer for the roof tiles for the garden house. The shortage is slowly reaching the concrete tiles as well. Braas Harzer Pfanne looks rather bad, Nelskamp still has decent stocks for the Sigma Pfanne, but due to driver shortage the delivery time is expected to be 5 weeks...

I believe I have never written down my construction costs here and will now make up for that: Completion of the semi-detached house in August 2021, start of construction (BP and solid wood shell) in October 2020. It is a semi-detached house with 2 residential units totaling approximately 135m². The construction was carried out according to KfW40+ standard + on top passive house. All invoices combined (including architect, realtor, notary costs, etc.) amounted to approximately 345K. However, I do not have to pay 60K of that kindly (KfW 40+ subsidy) and have directly received back a good 30K (BAfA, Progress NRW among others). Additionally, I have a good 10K tax saving over the next 4 years through the special depreciation of the upper residential unit (rental apartment).

In return, the house has received a few amenities. Controlled indoor ventilation with heat recovery, brine-water heat pump, photovoltaics + battery, "a bit of smart home." Almost all windows are equipped with external blinds. Aluminum front doors with motor locks, partly with video door intercom system. Cistern and domestic water system (for garden and toilet, optionally also for washing machine). Floor-level all-glass showers with rain shower, in my case a freestanding bathtub, among others.

The above-mentioned 345K includes all costs including incidental purchase costs and additional construction costs except my kitchen and the outdoor facilities. I paid for the kitchen "as is," the outdoor facilities have arisen/are arising gradually and I paid am paying them from ongoing income. However, thanks to own work, these will only be about 12K, of which almost half (terrace, access path, parking space) are already completed. From this week on, the remaining paving work, the double rod mat fence, about 25 tons of topsoil, hedges, trees, etc. will be done.

The above-mentioned price of 345K was only possible due to a lot of own work, we once estimated it at about 50K for the entire house, so proportionally 25K for me. The plot will cost me about 120K in 8 years (340€ per m², notarized fixed). Additionally, I have been paying 178€ monthly leasehold since the purchase contract over 2 years ago.

My interest rates: KfW 0.95 over 20 years (but I will finish after 15), the other loan was at 1.1

I don’t think I’ve ever written down my construction costs here and will now catch up on that:

Completion of the semi-detached house in August 2021, construction start (foundation and timber mass shell) in October 2020. It is a semi-detached house with 2 residential units totaling about 135m². The construction was done according to KfW40+ standard + on top Passive House. All invoices combined (including architect, broker, notary fees, etc.) amounted to about 345K. However, I kindly don’t have to pay 60K of that (KfW 40+ subsidy) and got about 30K back directly (BAfA, Progress NRW among others). Additionally, I have about 10K tax savings over the next 4 years thanks to the special depreciation allowance on the upper residential unit (rental apartment).

But the house also got a few amenities. Controlled residential ventilation with heat recovery, brine-water heat pump, photovoltaic + battery, "a bit of smart home". Almost all windows equipped with venetian blinds. Aluminum front doors with motor locks, some with video door intercom systems. Cistern and domestic water system (for garden and toilet, optionally also for washing machine). Floor-level all-glass showers with rain shower, a freestanding bathtub in my case, among other things.

The above-mentioned 345K includes all costs including incidental purchase costs and incidental building costs, only my kitchen and the exterior facilities are not included. Those will come gradually and I pay from ongoing income. Thanks to own work, these will be only about 12K, of which roughly half (terrace, access path, parking space) are already done. Starting this week, the remaining paving work, the double rod mesh fence, about 25 tons of topsoil, hedges, trees, etc. will be done.

The price of 345K was only possible due to a lot of own work, which we once estimated at about 50K for the whole house, so proportionally 25K on my part. The plot will cost me about 120K in 8 years (340€ per m², notarized). Additionally, since the purchase contract over 2 years ago, I pay 178€ monthly ground lease.

My interest rates: KfW 0.95 for 20 years (but I will be done after 15), the additional loan was at 1.1

Apart from the ground lease, which would be a dealbreaker for me, great price :-) Photos please :cool: