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Skyrocketing Construction Material Costs & Interest Rates – Lambda Has Your Back

Skyrocketing construction material costs, like concrete, doors, windows, and asphalt, have spiked by an average of 32.10% between 2020 and 2023. Coupled with 2023’s inflation pressures, Condo Board Members and Property Managers must consider these factors when planning Reserve Fund Expenditures. Neglecting inflation can lead to budget shortfalls. Lambda Financial Consulting offers a solution with a competitive 1-year GIC rate of 5.86%, outperforming the 5.00% rate. Compounded over 30 years, this extra interest income can significantly counteract rising costs, securing your Reserve Fund’s financial strength. Stay proactive, maximize Reserve Fund Returns, and ensure financial stability.

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Skyrocketing Construction Material Costs

Surfing the Tides: Skyrocketing Construction Material Costs and Interest Rates – Lambda’s Got Your Back

As if construction and maintenance costs weren’t already high enough, we’ve been hit with a wave of skyrocketing construction material costs in recent years. Concrete, doors and windows, asphalt – you name it, the prices have shot up. Today, we’re diving into these cost increases and how they’re affecting those all-important Reserve Fund Expenditures. It’s a concern that’s keeping Condo Board Members and Property Managers on their toes.

Let’s crunch some numbers, shall we? From 2020 to 2023, there’s been a jaw-dropping surge in the prices of some key construction materials:

– Concrete: Prices have gone up by a whopping 33.43%.

– Doors and Windows: Brace yourself – they’ve seen an eye-popping increase of around 49.0%.

– Asphalt: Costs have risen by approximately 15.86%.

This overall increase of roughly 32.10% in material costs is no joke, and it’s definitely caught the attention of industry experts.

But wait, there’s more! On top of the material costs, we’re also dealing with inflationary pressures in 2023. The Consumer Price Index (CPI) is pointing to rising prices across various sectors. And you know what that means? Expectations of continued price hikes in the near future, as producers have not yet been able to fully pass these costs on to consumers.

Lambda’s Got Your Back: A Unique Solution Tailored for Condominiums

Condo Board Members and Property Managers need to keep these inflation trends in mind when planning those all-important Reserve Fund Expenditures. Ignoring inflation can lead to budget shortfalls and financial headaches down the road. That’s why proactive financial strategies, like maximizing Reserve Fund Returns, can be a game-changer. They’re a smart way to hedge against the unpredictable world of inflation.

So, how can you counteract the impact of these soaring costs? One word: Lambda. Our financial gurus at Lambda Financial Consulting have got an attractive solution for you – a current 1-year GIC rate of 5.86%. That’s compared to a measly 5.00% bank rate, which means you’ll be raking in 27.7% more interest! Would you accept a bid from a vendor that was 27.7 higher? I hope not – so why should the Reserve Fund GICs be any different?

Now, let’s look at the big picture. Imagine compounding that 27.7% more interest over 30 years. It can have a huge impact on your Reserve Fund. For example, with an initial investment of $100,000 and a 5.00% rate, you’d end up with around $432,194 after 30 years. But with Lambda’s competitive 5.86% rate, you’d accumulate a mouthwatering $552,022 over the same period. That’s a whopping $119,828 more in favor of Lambda’s rate.

This extra interest income can go a long way in offsetting those rising material costs over the years, ensuring that your Reserve Fund remains strong and ready to handle future expenses.

Conclusion

In conclusion, as material costs keep climbing, Condo Board Members and Property Managers can’t afford to let their guard down. It’s crucial to factor in these rising costs when planning for Reserve Fund Expenditures. At Lambda Financial Consulting, we believe that staying informed and proactive is the key to successfully managing a condominium community’s finances. Keep a close eye on those cost trends and navigate the ever-changing landscape with confidence. And of course, by maximizing Reserve Fund Returns through our competitive GIC rates, you’ll be fortifying your community’s financial stability.

If you need personalized guidance on managing your condo community’s finances and getting the most out of your returns, don’t hesitate to reach out to Lambda Financial Consulting. Our experts are here to assist you every step of the way.

Even Better – Attend Condo Cents – October 26, 2023 7:00 – 9:00 PM to Learn More Register for Condo Cents

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