Will this property pay you back?
A property has three different rents, and the distance between them is the whole story: what it really lets for, what its asking price demands, and what your loan needs every month. Portals show you none of them.
The rent brings in ₹26,000. The loan and running costs need ₹69,638. The difference comes out of your salary, every month, for 20 years.
What you are really buying
Against a fixed deposit, honestly
Rent alone returns 2.39% on what you actually paid, so the property has to appreciate 5.2% a year just to draw level with a fixed deposit. At the 5% you have assumed it returns 6.82% — still behind the FD, and the shortfall is being funded from your salary each month.
Growth is the one number here nobody can know in advance — and it is doing most of the work in that comparison. The way to test it is not the asking price of one flat, but what properties in that locality have actually been registered at, year after year.
Get an independent valuationFigures are indicative and depend entirely on the inputs above. Stamp duty and registration vary by state and by buyer; loan terms vary by lender and profile. This calculator does not account for income tax on rent, the interest deduction on a housing loan, or capital gains on exit.
Questions people ask
What is the rent gap?
The difference between the rent a property actually earns and the rent it would need to earn to cover its loan and running costs. A negative gap means the owner funds the property out of their own pocket every month.
Why does this show a lower yield than property portals?
Portals divide the rent by the sticker price. That ignores stamp duty, registration, brokerage and interiors, which you also paid, and it ignores maintenance, property tax and vacancy, which come out of the rent. Both corrections push the real yield down.
What is a normal rental yield in Hyderabad or Andhra Pradesh?
Residential yields in most Indian cities sit between 2% and 4% gross. That is well below a fixed deposit, which is why the appreciation figure matters: at those yields, most of the expected return has to come from the price rising, not from rent.
Does this replace a valuation?
No. This is arithmetic on numbers you supply. A valuation is an independent professional opinion of what a specific property is worth, signed by a registered valuer, and is what a bank, a tax officer or a court will accept.