property on loan is a leverage investment, so if you have lost 10% of buy price, you need to calculate whats that in terms of your total capital invested.
For eg Buy price=522k total cost=548k (105% inc of buy price + legal/stamp duty etc)
your initial investment =78k (assuming loan of 90%)
out of pocket expense for two years you held the property = 10k after tax benefit ([rental-(maintainence+interest+landtax etc)]*0.55, assuming 45% tax bracket thus max benefit)
thus your total invested capital= 78+10k= 88k
capital left after sale = sell price - agent fees = 510-10-469(90% loan)= 31k so you have 31k left of your 88k invested capital ie 57k loss on 88k thats a 64% loss on invested capital
Assuming you instead invested in term deposit term deposit capital return after tax = 95k
with this extra 7k you actual loss become 70% of your invested capital
so though loss in terms of property price is 10%, loss in terms of your capital invested is 60-70% thats the power of leverage, needless to say it goes both way.
PS: I have not included lmi cost which will make this loss even worse.
