If you buy a house, the price may change over time due to inflation. Indexing the purchase price adjusts the price in line with inflation, thus preserving the value of the house.
What is an indexed purchase price?
The indexed price is a correction to the original sale price. CBS periodically publishes the increase or decrease in house prices in the Netherlands. Indexed prices are generated by correcting the selling price. So, an indexed price is the purchase price today.
On our site, you will find updated sale prices. For example, you will see the indexed sale prices and the actual purchase price in Walter buying service. The indexed price is a correction to the original sale price based on the CBS Index.
How is the indexed purchase price calculated?
The indexed purchase price is calculated by first determining the original purchase price of the house and multiplying it by an inflation rate. This inflation rate represents the house's price change when the buyer owns it. For example, if the house was bought two years ago, the inflation rate is calculated by comparing the price of the house today with the price of the home two years ago.
Why is the indexed purchase price important?
The indexed purchase price is essential because it reflects a more realistic house price. It helps buyers make a more informed decision about buying the house because it takes into account inflation and other elements that will change the value of the home over time.
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