Investment Property vs. Stocks: Total Wealth Comparison

Use this calculator to compare investment property returns against direct stock investing and identify which path builds more net worth over time.

Property Details

Purchase Price

Down Payment 20%

Mortgage Rate (%)

Monthly Rent

MARKET ASSUMPTIONS

Stock Market Return

RE Appreciation

Rent Appreciation

Closing Costs (%)

Vacancy Rate (%)

Property Tax (Annual $)

Insurance (Annual $)

Maintenance (%)

Mgmt Fee (%)

Monthly Utils/Misc ($)

Selling Costs (%)

Marginal Tax Rate (%)

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30-YEAR PROJECTION

Stocks are the Winner

By choosing direct investment, you are projected to build +$245,000 more in net worth compared to real estate.

PROJECTED NET WORTH

$1,850,000

Wealth Growth Over Time

Comparing total asset value (Property + Cash Flow vs. Portfolio).

PROPERTY

STOCKS

Year 0

Year 30

home_work Property Metrics

First Year Performance

Gross Rental Income $30,000

Operating Expenses $12,500

Mortgage Payment (P&I) $23,982

Annual Cash Flow -$6,482

Cap Rate

3.5%

CoC Return

-5.2%

trending_up Direct Investment

Portfolio Dynamics

Initial Investment $112,500

Reinvested Cash Flow (Avg) $0

Compound Growth (30y) $1,132,000

Total Portfolio Value $1,244,500

*Includes initial capital plus the opportunity cost of reinvested monthly cash flow.

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Transparency Note: Real Estate Leverage

Real estate's primary advantage is leverage. You control a $500k asset with $100k, meaning a 3% appreciation on the property is a 15% return on your equity. However, this is balanced by unrecoverable costs: interest, taxes, and maintenance. Stocks offer liquidity and zero maintenance but no leverage (typically). RealityMath models both paths to reveal which compounding engine works harder for your specific scenario.