450 West 17th Street #2507 Guess How Much Loss

Same building as http://streeteasy.com/nyc/talk/discussion/33866-450-west-17th-street-2504-guess-how-much-profit, same sales date. Bought Feb 2011 for $4.575M, financed $2.6M w/ 30-yr mortgage (rates were at 5.4%). Sold Dec 2012 for $4.75M. Up 4%, very similar to general market. Paid $30K a year in monthlies, $140K a year in interest -- about the same as rental value at $170K a year, so a wash.... [more]

Same building as http://streeteasy.com/nyc/talk/discussion/33866-450-west-17th-street-2504-guess-how-much-profit, same sales date. Bought Feb 2011 for $4.575M, financed $2.6M w/ 30-yr mortgage (rates were at 5.4%). Sold Dec 2012 for $4.75M. Up 4%, very similar to general market. Paid $30K a year in monthlies, $140K a year in interest -- about the same as rental value at $170K a year, so a wash. Paid $475K in transaction costs. So: $4.75M - $4.575M - $475K = -$300K. On down payment of $1975K, that's a loss of 15%. SPY did +15% over that period, so 30% under-performance relative to stocks. TLT did +45% over that period, so 60% under-performance relative to bonds. [less]