Should you keep that property, or sell + redeploy?

End-state wealth comparison over your chosen horizon. Models capital growth, after-tax cashflow, sell costs, CGT (with 50% discount where applicable), and the compound return on after-CGT proceeds in the sell path.

Frequently asked questions

Why is "should I sell" one of the hardest decisions in investing?

Three things conspire against a clean answer: (1) Selling crystallises real costs — agent commission (1.5-3%), marketing, conveyancing, plus CGT on any gain (offset by the 50% individual/trust discount if held >12mo). (2) The alternative return assumption dominates the model — at 6% alternative growth vs 8% property growth, the gap compounds; flip the numbers and the answer flips. (3) Property growth isn't constant — most properties have 2-3 strong years per decade and the rest are flat or down. A backward-looking model assuming smooth 5%/year compound rarely matches reality.

What's a realistic CGT estimate?

Capital gain = (sale price − sell costs) − cost base, where cost base = purchase price + acquisition costs (stamp duty, legals) + capital improvements. The discount: individuals + trusts get 50% off if held >12 months; SMSFs get 33% off in accumulation; companies get NONE. Apply your MTR to the discounted gain. The calculator simplifies — assumes 50% individual discount + your MTR on the discounted gain. Real CGT on a multi-year hold can also use indexation method (pre-1999 acquisitions) — niche, ignored here.

Why would I sell instead of redrawing equity to buy another property?

Often you wouldn't. The HOLD path in this calculator can be improved by adding 'redraw equity, buy another property' on top of it — that's where most experienced investors are. The SELL path makes more sense when (a) the property is genuinely underperforming the market, (b) the area's growth thesis has broken down, (c) you need the cash for a non-investment purpose, (d) you're rebalancing into a structure (trust, SMSF) that gives different tax outcomes, or (e) you're approaching retirement and reducing leverage on purpose.

What does the "alternative return" represent?

The compound annual return you assume the AFTER-CGT proceeds would earn elsewhere. Reasonable benchmarks for a balanced portfolio after fees and tax: ASX300 + dividends ~7-8%, ETF balanced fund 5-7%, term deposits 4-5%, paying down PPOR mortgage = your mortgage interest rate (typically 6-7% effective, untaxed). Use what your actual next-best alternative is — DON'T plug in the property's growth rate, that's what makes the model self-referential.

Should I include rental cashflow in the hold path?

Yes — that's why the calculator has a 'net annual cashflow' field. Negatively-geared property has negative cashflow which subtracts from the hold path each year (after tax savings). Positively-geared property adds. Get the after-tax annual number from the Negative Gearing Calculator and plug it in — that's the most accurate way to model the hold-path bottom line beyond just capital growth.