Investment Property vs Financial Portfolio
For anyone sitting on an investment property: this tool compares holding it — collecting rent, paying any loan, riding appreciation — against selling now and investing the net proceeds in a stocks-and-bonds portfolio. It models rental income after vacancy, expenses and tax, capital-gains tax with indexation on sale, and after-tax outcomes on both sides over your chosen horizon, plus the monthly income each path could sustain.
Your property today
Rental income
If you sold & invested instead
Comparison settings
This is the amount that gets invested in the sell path.
₹1.34 Cr
Sell & invest leaves you ₹1.34 Cr wealthier after tax over 15 years with these assumptions.
Net worth over time
Hold (property value + rental − loan) vs sell & invest
How sensitive is this?
Advantage to sell & invest (negative favours holding).
Tax treatment (LTCG, indexation, rental slabs) is modelled on general Indian rules and varies by situation. Emotional and lifestyle value are yours to weigh. Not financial advice.
What this means
A paid-off or nearly-paid property feels safe, but the money locked inside it has an opportunity cost. This tool makes that cost visible. On the “hold” side it grows the property at your appreciation rate, adds up rent after vacancy, maintenance and income tax, subtracts any loan, and applies capital-gains tax (with cost indexation) as if you sold at the end. On the “sell & invest” side it takes today’s net sale proceeds — after capital-gains tax, selling costs and loan payoff — and grows them in a portfolio split between equity and fixed income, taxing the gains at the end. Comparing the two after-tax figures shows which path builds more wealth, and the safe-withdrawal view shows which could pay you more monthly income. Because the answer hinges on appreciation versus portfolio return, a built-in sensitivity table shows how the gap moves when either assumption is off by 2%.
Frequently asked
Should I sell my investment property and invest the money instead?
Purely on after-tax numbers, selling and investing tends to win when your expected portfolio return is meaningfully higher than property appreciation plus net rental yield — and when a lot of your wealth is tied up illiquidly in one property. Holding can win when appreciation is strong, rent is high relative to value, or the tax hit on selling is large. Model your own numbers and check the sensitivity table.
How is capital-gains tax handled?
The tool applies a long-term capital-gains rate to the gain over your indexed purchase cost, where the purchase cost is grown by inflation to approximate cost indexation. It does this both for a sale today (to find investable proceeds) and for a notional sale at the end of the hold period, so both paths are compared after tax.
Does it account for rental vacancy and expenses?
Yes. Gross rent is reduced by your vacancy rate, then by maintenance and property costs (as a percentage of value), then by your income-tax slab on the remaining rental income. Only the net figure is credited to the hold path.
What if the property still has a loan?
Turn on the loan option and the tool amortises your outstanding balance over the remaining tenure. The loan reduces your net sale proceeds today, its EMIs are netted against rent (flagging any years of negative cash flow), and any balance left at the end is subtracted from the hold-path net worth.
Related tools
Home Loan vs Rent & Invest
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Land vs Financial Assets
Compare buying land against putting the same money into financial assets.
Retirement Income: Guaranteed vs Managed
Compare a guaranteed annuity income against drawing down a managed portfolio.
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