Price Of Lumber
I am buying land to build a duplex. However, my builder stated that he thinks that the price of lumber will gd down during the months of January and Feb.and that I should wait until March to build. Any thoughts?
My builder also does. Prices have jumped 12% in the last month here and he anticipates the prices to lower 30% off current around the same timeframe.
How is it costing you to build a duplex with 950 on both sides?
meant to say: How much is it costing you to build a duplex with 950 on both sides?
What you really need to look at is the additional cost of lumber campared to the lost cash flow caused by the delay in construction. Regardless of your decision there is a cost to you. While the lost opportunity for cash flow is not an expense out of your pocket, it is a loss of money going in your pocket. Excel spreadsheets and the BA II calculator will both figure cash flow analysis problems. You should go ahead and build if the lost cash flow exceeds the additional cost of the lumber.
Just remember that lumber costs are highly speculative, and it is very hard to predict what will occur in the market. A forest fire in December will cause prices to go up in January, and if you wait, you will loose even more potential cash flow. It is usually best to get the building finished and earning income.
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