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To include inflation when trying to calculate if it was worth buying our flat?

(4 Posts)
LBP Tue 31-May-11 21:55:51

Bought flat at the end of 2006 for £250k. Hoping to move in the next year or two and given the stagnation in the housing market wondering if we would have been better of renting all this time (will probably sell for around the price we paid, estate agent suggests more but i am skeptical). I can work out approximately our financial 'investment' in this flat in terms of interest paid, cost of repairs etc over past five years and how this compares to rental charges for an equivalent property, but wondering if/how I should factor inflation in? Online calculator suggests that price we paid is equivalent to around £277k today, which indicates that rental may have been a better option as we will be highly unlikely to sell for that amount.

I am thankful of the stability buying has given us and probably wouldn't change our decision to buy if I had my time over as living here has made us very happy but I can't help wondering nonetheless.

So AIBU to concern myself with inflation?

Ishani Tue 31-May-11 22:24:46

We haven't had wage inflation nor much in the way of rental inflation so I would just factor in the removal costs you've saved, along with all those bull shit credit checks and admin fees, deposits held for no reason. Not to mention the stability which is priceless. I am faced with potentially renting again and it fills me with dread.

ccpccp Tue 31-May-11 23:36:18

Wage inflation is your friend when you have a mortgage. We havent had that though.

House prices are so pie in the sky - just go find a more aggressive estate agent and get him to value it at 280k. Instant profit! wink

Its what you can sell it for that counts. The market is against you so perhaps stay where you are. I doubt you'll get 2006 prices unless you are in London, as everywhere else seems to be discount or die.

AlpinePony Wed 01-Jun-11 06:41:53

Don't waste your time. Your flat is "worth" what someone will pay for it, not A+B - (C/D) * E!

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