After three years, the construction of Mr. Klíma’s dream house from southern Bohemia was finally nearing completion. But there came a wave of rising building materials. “We don’t have a facade, we don’t have fences, it’s not on the terrain. The price increase has made us a little over budget,” he told TV Nova reporter.
People reconstructed and built for life during the pandemic. The sellers claim that their warehouses are empty and that the manufacturers are still not producing at full capacity. If something comes up, it’s twice as expensive as a few months ago.
“On the one hand, demand has increased significantly, globally, on the other hand, some production capacities of key building materials have fallen out,” explained economist Marek David.
The most expensive prices were iron, wood and insulators. In addition, the material is often waited for several months. The mortgage that people have taken out is often not enough. He must give up the dream of his own home.
“Of course, the construction became more expensive over time. The price increased by about twenty percent,” confided Mr. Klíma.
“Now it is necessary to sit over the budget and say what is necessary and what can be postponed until later,” the economist recommended. “The number one advice is to go consult with your banker, go to the bank and deal with it, because the bank usually has no incentive not to repay, so he can agree with him on a bridging loan, on a higher mortgage,” another expert advised. Dominik Stroukal.
Economist Štěpán Křeček added a warning. “It is certainly not good to withdraw to a corner, not to solve the situation. She will not solve herself, and if the bank is not informed during the drawdown, it is a big problem,” he said.
In the extreme case, economists advise to sell the building and repay the mortgage. In addition, with the constant growth of real estate prices, it is possible to make money on sales. According to experts, mortgages may become even more expensive, so the situation will definitely not improve in the next few months.
The rise in construction prices is also a concern for cities and companies:
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