Stockpiling materials against inflation
Infaltion may be all well and good <??> if you are in the business and can pass on infaltion costs to customers or are heavily in debt.
But, infaltion in times of low interest rates a problem for frugal DIY homebuilders, and oldest GKids will be needing houses in about 7-8 years.
So, I know, ‘hard spot to be in’ <G>, but say I got $20K coming due in a CD next month that could only renew at 3%, what could I spend that on for materials to stock a strategic reserve, what would you suggest*.
Already got enough land, plumbing, fixtures, lumber, wire, elec. hardware, etc. stockpiled to build at least one 3000 sq ft house.
Cement and roofing have already gone high, and are hard to store without deterioration or moisture absorption, which is why those were ruled out a few years back after I ‘lost’ a pallet of cement bags.
Already got more tools than I or kids can use at once; but probably will buy a used telehandler or bucket truck if the local builders start unloading equipment.
Other ideas?? *other than sending a $100 check to each BT’er?
Replies
what about stainless steel anything. Screws, nails, framing connectors. If you plan on using ACQ anywhere in your project, they would be needed. And there relatively cheap, especially online. Check Manasquan fasteners, they have screws and nails for older guns at rock bottom clearance prices.
Thanks, I will get some SS brackets, and thanks for the link.
Got a few boxes full of galv. stuff, but will likely need some of new PT stuff (only have a few hundred BF of the old copper based PT left)
I think any materials unless they are small and easy to store would be too prohibitve to stockpile unless you had a really big shop. Copper wire maybe a good idea as its definitely going to increase but maybe not enough to make it worth storing.
I think if I had $20k to invest, I would buy a piece of equipment as those always seem to be worthwhile.
Mike
I'd buy more land/property, even if I thought I had enough.
I'd get more land also, but DW does not want to deal with management of it.
As it is, she really does not want me stockpiling anything more, lives in fear I'll die before she does and then what to do with 'stuff' !
Convince her that land/property is easier to sell/divide out of your estate. No need to sort through any piles of it, no need to figure out what it is, no need to ask family if they want. It goes for sale and is easy to determine a value of it.
I really need to see these stockpiles.
Must learn from the Master, but in a way that the wife doesn't find out and kick my posterior. ;)
Seriously, without know what you are going to build, it would be difficult to really know what to stockpile. Unless you put up a temporary structure to keep out the rain, any wood/plywood you purchase rot. Rebar would rust. You would have to use care with roofing materials. The stainless steel hardware is a great idea, but again, you really don't know what you will need.
Have you considered putting in power, water, and septic for the proposed house location. You would be guessing at the bedroom number and size. Maybe cheaper to do it now instead of later with the way things are going here in King County. Although by then the county could be forcing you to tie into existing sanitary sewer. Just a thought.
Impossible is an opinion.
need to see these stockpiles
I'm East of Renton, drop an e-mail whenever you might have time, only 3/4 mi off Maple Valley highway. I'm out of town a lot though.
Jeff came by couple of weeks ago for some insulation and 1/2 ply. Needed to fire up the backhoe to remove blackberries to get to the 5 years old plywood stack, but it was still in good shape - had the sheets covered with old steel whiteboards.
Have you considered putting in power, water, and septic for the proposed house location
That is definetly one of the 'to do' items.
Renton (not annexed yet, thankfully) just put in some sewer connectors to the Maple Valley feeder trunk with assessments that dont need to be paid until used, but get raised by 8-10% a year for the first ten years in the interim.
Hate to give any money to the city early, but with that 8% gouge it is making sense to save a few grand in interest 10 years from now.
Put the cash into the RJI commodities index ETF and it will still be able to buy the stuff when needed and it won't rot or get stolen meanwhile.
Welcome to the
Taunton University of Knowledge FHB Campus at Breaktime.
where ...
Excellence is its own reward!
since when have you bought anything "retail" ? the few trips i do make to supply houses kills me... but sometimes time really is money....
copper wire is the only thing I think you could purchase now and be $$$ ahead a few years down the road... but even now i buy most of my wire off ebay or outside of the normal retail market... with a few days notice i can save 25% min on anything... usually 50% or more...
my butt is still chapped the other day i needed a brake master cylinder for a forklift... (if it'd been just be i can drive it with no brakes...) anyway $110 to get it NOW... checked ebay... $24 new in the box several to choose from... just needed a few days notice... $24 plus $7 shipping... $110 + $10 tax + 2 trips to the parts house $5 fuel $93 extra spent... which is really about $130 that I had to make.
my point being... plan well and buy well... plan around what you have or can get (windows doors ect...) a good design can save 15-20% before you ever nail a nail... make lists and fill needs... over buy'n because it's a good deal turns a good deal bad...
this is one subject on which you should be the one write'n the book
p
I knew a guy from Mexico pretty well. From what he told me converting money into real goods is standard paractice down there. Inflation and the lack of trust in banks means that holding onto money doesn't work real well.
how about a nice vacation?
keep in mind ... something's only worth something ...
if someone else will buy it.
like my wife's boss will say ... he's a financial planner ...
when someone calls in ona day the market is up.
U haven't made any money ... unless you sold something today.
if I had a lum sum of cash coming in ... I'd keep it as cash.
cash on hand in a down market is always a good bet.
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
how about a nice vacation?
Whats this thing called nice vacation?
DW has met her goal of visiting all 50 states, but has not been to Sitka, so probably will go there this year for a few days (freq flyer miles of course)
DW handles all the stock except for company options, she does not see any big buying opportunities right at this time.
well supplies, - pump, tank, poly line, valves, frost proof hydrants, (casing?), all the way to sink and faucets and toilets (I've got a couple of vintage - I might trade them....)
a good supply of pre-dug holes don't take up much space - just store them in the predug well pit -
sink and faucets and toilets
Mostly have those. Did catch a guy trying to steal aluminum windows out of a back shed, had the sherrif talk to him, the next day there were 3 stainless steel sinks leaning against a shed I had not realized were gone (in addition to a few other windows)!
Whenever I see a free toilet in craigslist that is not too far out of my way to pickup, I grab'em, keep the best, crush others for sub-base on driveways.
Thought I got a good cast iron tub the other day, but had a big chip in it and not a clawfoot - 400#, busted it up and threw it in with some engine blocks (DW wanted them gone) and got 10cents/# at the scrap yard.
junkhound,
ICF's for the foundation (and even the walls if in hurricane or tornado areas) The price is near what they were years ago even with the run up in oil prices. That makes them ripe for increases. I would also buy SIP's for the roof panels.. to make a really efficent home.
What a gift for Gchildren, a energy efficent home when their contemporaries will be buying energy hogs.
ICF's
Good idea, Only problem with those is the high visibility factor, kinda like what Engineerguy said "but in a way that the wife doesn't find out and kick my posterior"
Can get away with stuff she does not see easier <G>
I really am watching craigslist and ebay and local auctions for a telehandler, what other sources should I be watching? Naturally I want to find one really low price (that likely needs repair). Have come across some good buys on backhoes, but think DW would get pretty upset saying something like "wadda need two backhoes for?"
Edited 6/19/2008 6:54 am ET by junkhound
junkhound,
Now is not the time to be looking for a telehandler. As lousy as home construction is around here most guys desperate enough to get rid of a $60,000+ asset for $30,000 or less have pretty much made that move already.
You will have better luck as fall approaches and construction again grinds to a halt. The few that have been desperately hanging on will see a pretty bleak winter and might be inclined to pull the plug..
I would moniter Detriot and Mpls. newspapers since construction in those two areas is particularly hard hit..
(against that, I talked with a contractor today who's just sold his VR60 for $5000.00 all it needed was two new tires (about $250 each)
VR60 for $5000.00 all it needed was two new tires
That is just about exactly the type deal I've been watching for!
junkhound,
The guy was desperate. needed to forestall foreclosure on his house so he gave up a $20,000 piece for $5,000 cash right now..
Those sorts of deals happen instantly or not at all.. I still drive buy telehandlers with for Sale signs on them but they are trying to break even with their debt by selling them and not taking into consideration market conditions..Unlikely to sell.
Oh as for ICF's you'd need a place for them not exposed to UV light or they will deteriorate.
Cement and roofing have already gone high, and are hard to store without deterioration or moisture absorption, which is why those were ruled out a few years back after I 'lost' a pallet of cement bags.
Concrete futures, that's what we need.
We should be able to go down to Glacier NW, Cadman, or Miles & pay them today for future concrete.
I'm going to need about 75 yrds for my shop, prices are just getting to be a killer.