Construction costs are currently skyrocketing

  • Erstellt am 2021-04-23 10:46:58

Ysop***

2022-06-17 17:02:03
  • #1
According to Spiegel, "currently almost a third of financings fall through just before signing because the banks can no longer reflect the runaway property prices in their valuation systems and insist on more equity" additionally potential buyers drop out due to the interest rate hikes. I think that’s really a lot
 

WilderSueden

2022-06-17 17:02:07
  • #2
On this topic, I would like to recommend the book "Irrational Exuberance" by Robert Shiller (German title "Irrationaler Überschwang"). Even though every bubble is preceded by a whole bunch of good reasons and helpful factors (e.g., low interest rates), bubbles are always also a herd problem. At some point, the favorable factors disappear, but the trend still continues a little further. After all, many only entered shortly before the peak, and there are still some who want to get into the market. And only when these can no longer get in (e.g., because the bank at 3% simply no longer sees the creditworthiness that existed at 1%) does it start to collapse. First in the completely overheated markets. Now, Germany is of course not the USA and real estate is something different from stocks. If a real estate sale would realize a loss, often it is not sold but simply waited out. In the USA, on the other hand, one can hand the bank the keys and be debt-free. The downward trends are correspondingly more extreme there.
 

driver55

2022-06-17 19:07:54
  • #3
Oh man, it was clear you were going to come up with that. However, the comparison to a house is hugely flawed. Research, development, intelligent compact solutions… simply high tech that enables these leaps… electronic waste in abundance. With houses, it’s going in a different direction. The huts are much more complex and therefore (simply) more expensive due to all the requirements and regulations… (I am assuming new builds…) And thousands don’t just come off the line every day either…
 

gtgeorge79

2022-06-17 19:54:21
  • #4
I obtained several offers for my construction project across all trades. In the end, the contracts were always awarded to those who submitted their offer in a timely manner. The offers I had to chase after were without exception more expensive. For the trades I still need, I will no longer chase after them. Those who need to be begged are satisfied. You need those who are passionate and want to get things done. And the good thing is that these companies also offer better prices. All others are a waste of time.
 

WilderSueden

2022-06-17 20:14:54
  • #5
Also with houses you have quality leaps. Energetically, you cannot even remotely compare the simple new builds with the good houses from the 70s. Even with the cheapest provider, you have more than 2 sockets in the kitchen. Underfloor heating is practically standard. Even some cheap houses have ventilation installed. Electric shutters are now very common. And so on. Whether the additional or better equipment is always in proportion to the price remains to be seen. By the way, this is a point that makes it difficult to measure inflation rates. An apple from 1970 is comparable to an apple from 2022. But a Golf is not.
 

Allthewayup

2022-06-17 21:29:06
  • #6
Just read in the „Zeit“ that the number of building permits for single-family houses from January to April 2022 decreased by 22% compared to the same period last year. Apartments -1.5%, two-family houses -1.2%, and multi-family houses +11.6%.
 
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