Rental Property

Down payment plus the loan's EMI schedule fund the purchase; rent (net of vacancy and operating costs) offsets the EMI each year; the loan amortizes month by month; and the property appreciates independently of rent. Net wealth at exit = property value − outstanding loan + accumulated net rent − all cash put in. Rental/capital-gains tax is not modelled.

Rental income is taxed at your slab after a flat 30% standard deduction (Section 24) plus any home loan interest deduction. Capital gains on sale after 2 years are long-term, taxed at 12.5% without indexation (or 20% with indexation if acquired before July 2024, whichever is lower).