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Have you worked it out? Use the money you put in at the beginning, not the current value
Why? The sunk cost is not really relevant - the value is where you could trade out to another asset today if you wanted to.
NickCJ-
The sunk cost is not really relevant - the value is where you could trade out to another asset today if you wanted to.
Yeah, it's kinda weird. I can see arguments for using value or purchase costs depending on what you are trying to do. In this case sunk costs would provide the slightly less depressing answer.
Howard
Have you worked it out? Use the money you put in at the beginning, not the current value.
Anything around 4% isn't a complete disaster. Put in the context of the battering my investments have taken over the last couple of months, the minimal yield my other flat has paid over the last eight years looks like pretty reliable if unremarkable performance.
You could consider renting a house. Looks a bit shit on paper but I suspect there will be quite a few empty properties right now or stock that people wanted to sell but now cannot so they'll rent until this either blows over or we get a better understanding of what the new normal looks like.
Having had a new born in a top floor flat I would suggest doing whatever you realistically can to get yourself in to a place with a bit of outside space and another floor.