Construction costs are currently skyrocketing

2022-06-16 13:01:50

Am I missing something or does the argument "No problem, inflation will also eat away the debts" only hold if wages keep pace with inflation? My boss, bless his little heart, still refuses to compensate for inflation and at the company where my husband works they are currently discussing 2% as a maximum because short-time work is also on the table there. We really feel the price increases in our wallets.

Wrong industry, I would say (or AT?). IG Metall just secured 6.5%. Respect, I wouldn’t have thought that possible. As a chemical industry union member, I can almost get jealous, and don’t come to me now with that "great" bridge payment that mostly benefits the tax authorities. But yes, basically you are right. Inflation only benefits you if accompanied by (real!) wage increases.

2022-06-16 13:09:48

Inflation compensation leads to even more inflation. That is not desirable at all, not even from the perspective of the employee.

The golden years are simply over.
Politics must take care of low-wage earners, for whom this becomes existential. Everyone else will complain (it was better before) but will cope.
Populist nonsense like temporary fuel discounts must stop.

2022-06-16 13:13:54

When I look at the current interest rate developments and the associated problems and worries of some homebuilders, I count my blessings that we got such favorable conditions last summer. Financing over 100%, 0.92% interest, 10 years, €1900 installment with 3.4% repayment rate. The plan was actually to make regular annual special repayments. But we are now putting that into a building savings contract recently and quickly concluded, which covers the majority of the remaining debt in 10 years. We managed to get 1.25% interest there. Even though we now have somewhat higher burdens than planned in the next few years, we know that our burden at the follow-up financing is manageable. At the current interest rates, we probably wouldn't have been able/willing to afford our little house. I don't envy anyone who is currently looking for financing (with current construction and real estate prices).

How exactly does the construct look? You financed €525k, remaining debt after 10 years €336k. How does it go on then? You surely pay €300...500 per month into the building savings contract...

2022-06-16 13:22:06

Where can you get move-in ready existing properties for 260 k€? :rolleyes:

Central Hesse... the owners could have certainly gotten a lot more, but we know them well and they were glad that we accommodated them regarding the handover date. It's just a terraced house, and you really only come to appreciate the location if you live there... I grew up there and know what we are getting in that respect.

2022-06-16 13:24:57

I can imagine Saxony or the Hof district... Move-in ready is a flexible term

For us it is actually move-in ready. If we feel like it, we might repaint a wall here and there but definitely nothing more needs to be done

2022-06-16 13:46:22

Inflation compensation leads to even more inflation. That is not desirable at all, not even from the employee's perspective.

.

Let me guess, not dependent on money from employment... or an inflation profiteer yourself. No one who has completed their 10 years of compulsory schooling should believe these spiral myths anyway ;).

Construction costs are currently skyrocketing

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