Overview
The Sell Investment Property event allows you to model the financial impact of selling an investment property, including cash inflows, sale costs, mortgage settlement, and capital gains tax (CGT).
When you add this event, the selected property will be sold at the start of the chosen year, and Canwi will calculate the net proceeds, capital gain, and taxable income impact based on current tax rules.
💡 Important: Any recurring expenses associated with the property (e.g., maintenance, insurance, property management fees) will automatically end once the sale occurs.
We don't currently allow you to insert expenses against an existing / currently owned Investment Property - however these are added against planned investment property purchases
How the Sale is Calculated
When an investment property is sold, Canwi calculates the key financial outcomes as follows:
Sale Price – The projected market value of the property at the time of sale (this is either the value as at the end of the year prior - or if its the first year of your plan - the current value you declared on the "Add Asset" form..
Outstanding Mortgage(s) – Any remaining secured debts linked to the property will be repaid from the sale proceeds.
Sale Costs – Expenses like real estate commission, marketing, legal fees, and auction costs.
Cost Basis – The original purchase price plus costs associated with selling the property.
Capital Gain (or Loss) – The difference between the sale price and cost basis, minus sale costs.
Taxable Capital Gain – A 50% CGT discount applies, as all proprety is held for more than 12 months.
We don't currently allow you to insert additional capitalised costs (e.g. Stamp duty, legal fees, renovation costs associated with the property - and which can also be added to the Cost Basis (affecting the Capital Gain / Loss)
Event Options
Property Selection
You'll need to choose an existing investment property from your assets list to sell. The estimated sale price is based on its current market value.
Sale Costs
This includes:
Real Estate Agent Commission (typically 1.5%–3.5% of the sale price). We default this field to the mid point of the typical range (i.e. 2.5% of the sale price)
Marketing & Advertising (professional photography, online listings, brochures)
Legal & Admin Fees (conveyancing, settlement costs, mortgage discharge fees)
Preparation Costs (repairs, staging, inspections before listing)
How do I set the purchase price of an Investment Property so that the Capital Gain calculation is correct?
You can do this from the Add/ Edit Asset modal accessible on the home screen.
