investment_simulator/simulator.ipynb

{
 "cells": [
  {
   "cell_type": "code",
   "execution_count": 19,
   "metadata": {},
   "outputs": [],
   "source": [
    "from simulator import *\n",
    "\n",
    "# Loan properties\n",
    "PERIODS_PER_YEAR = 12\n",
    "LOAN_DURATION_YEARS = 30\n",
    "TOTAL_LOAN_PERIODS = PERIODS_PER_YEAR * LOAN_DURATION_YEARS\n",
    "NOMINAL_ANNUAL_INTEREST_RATE = 6.6 / 100\n",
    "LOAN_PRINCIPAL = 600000\n",
    "PERIOD_INTEREST_RATE = NOMINAL_ANNUAL_INTEREST_RATE / PERIODS_PER_YEAR\n",
    "PERIOD_PAYMENT = (LOAN_PRINCIPAL * (PERIOD_INTEREST_RATE * (1 + PERIOD_INTEREST_RATE) ** TOTAL_LOAN_PERIODS) /\n",
    "                  ((1 + PERIOD_INTEREST_RATE) ** TOTAL_LOAN_PERIODS - 1))\n",
    "\n",
    "def calculate_total_payments(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"total_payments\"] + PERIOD_PAYMENT\n",
    "\n",
    "def calculate_interest_payment(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"remaining_loan\"] * PERIOD_INTEREST_RATE\n",
    "\n",
    "def calculate_total_interest_paid(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"total_interest_paid\"] + calculate_interest_payment(metrics)\n",
    "\n",
    "def calculate_principal_payment(metrics: MetricsContainer) -> float:\n",
    "    return PERIOD_PAYMENT - calculate_interest_payment(metrics)\n",
    "\n",
    "def calculate_remaining_loan(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"remaining_loan\"] - calculate_principal_payment(metrics)\n",
    "\n",
    "loan_metric_configs = {\n",
    "    \"total_payments\": MetricConfig(initial_value=0, period_calculator=calculate_total_payments),\n",
    "    \"interest_payment\": MetricConfig(initial_value=None, period_calculator=calculate_interest_payment, plot=False),\n",
    "    \"total_interest_paid\": MetricConfig(initial_value=0, period_calculator=calculate_total_interest_paid),\n",
    "    \"principal_payment\": MetricConfig(initial_value=None, period_calculator=calculate_principal_payment, plot=False),\n",
    "    \"remaining_loan\": MetricConfig(initial_value=LOAN_PRINCIPAL, period_calculator=calculate_remaining_loan)\n",
    "}"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 20,
   "metadata": {},
   "outputs": [],
   "source": [
    "# Property properties\n",
    "DEPOSIT = 32500\n",
    "ADDITIONAL_UPFRONT_COSTS = 11356\n",
    "ANNUAL_APPRECIATION_RATE = 5 / 100\n",
    "INITIAL_ANNUAL_RENTAL_INCOME = 14400\n",
    "RENTAL_INCOME_ANNUAL_GROWTH_RATE = 6 / 100\n",
    "INITIAL_PROPERTY_VALUE = LOAN_PRINCIPAL + DEPOSIT\n",
    "PERIOD_APPRECIATION_RATE = (1 + ANNUAL_APPRECIATION_RATE) ** (1 / PERIODS_PER_YEAR) - 1\n",
    "\n",
    "def calculate_period_appreciation(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"property_value\"] * (1 + PERIOD_APPRECIATION_RATE) - metrics[\"property_value\"]\n",
    "\n",
    "def calculate_property_value(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"property_value\"] + calculate_period_appreciation(metrics)\n",
    "\n",
    "def calculate_equity(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"equity\"] + calculate_principal_payment(metrics) + calculate_period_appreciation(metrics)\n",
    "\n",
    "property_metric_configs = {\n",
    "    \"property_value\": MetricConfig(initial_value=INITIAL_PROPERTY_VALUE, period_calculator=calculate_property_value),\n",
    "    \"equity\": MetricConfig(initial_value=DEPOSIT, period_calculator=calculate_equity)\n",
    "}"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 21,
   "metadata": {},
   "outputs": [],
   "source": [
    "# Income properties\n",
    "PERIOD_RENTAL_INCOME_GROWTH_RATE = (1 + RENTAL_INCOME_ANNUAL_GROWTH_RATE) ** (1 / PERIODS_PER_YEAR) - 1\n",
    "INITIAL_PERIOD_RENTAL_INCOME = INITIAL_ANNUAL_RENTAL_INCOME / PERIODS_PER_YEAR\n",
    "\n",
    "def calculate_period_rental_income(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"period_rental_income\"] * (1 + PERIOD_RENTAL_INCOME_GROWTH_RATE)\n",
    "\n",
    "def calculate_total_rental_income(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"total_rental_income\"] + calculate_period_rental_income(metrics)\n",
    "\n",
    "def calculate_period_cashflow(metrics: MetricsContainer) -> float:\n",
    "    return calculate_period_rental_income(metrics) - calculate_interest_payment(metrics)\n",
    "\n",
    "def calculate_net_worth(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"net_worth\"] + calculate_period_cashflow(metrics) + calculate_period_appreciation(metrics) + calculate_principal_payment(metrics)\n",
    "\n",
    "income_metric_configs = {\n",
    "    \"period_rental_income\": MetricConfig(initial_value=INITIAL_PERIOD_RENTAL_INCOME, period_calculator=calculate_period_rental_income, plot=False),\n",
    "    \"total_rental_income\": MetricConfig(initial_value=0, period_calculator=calculate_total_rental_income),\n",
    "    \"period_cashflow\": MetricConfig(initial_value=None, period_calculator=calculate_period_cashflow, plot=False),\n",
    "    \"net_worth\": MetricConfig(initial_value=DEPOSIT - ADDITIONAL_UPFRONT_COSTS, period_calculator=calculate_net_worth),\n",
    "}"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 22,
   "metadata": {},
   "outputs": [],
   "source": [
    "# Baseline Properties\n",
    "ETF_ANNUAL_YIELD = 9 / 100\n",
    "ETF_PERIOD_YIELD = (1 + ETF_ANNUAL_YIELD) ** (1 / PERIODS_PER_YEAR) - 1\n",
    "RENTAL_COST_ANNUAL_GROWTH_RATE = 6 / 100\n",
    "INITIAL_ANNUAL_RENTAL_COST = 20400\n",
    "INITIAL_PERIOD_RENTAL_COST = INITIAL_ANNUAL_RENTAL_COST / PERIODS_PER_YEAR\n",
    "PERIOD_RENTAL_COST_GROWTH_RATE = (1 + RENTAL_COST_ANNUAL_GROWTH_RATE) ** (1 / PERIODS_PER_YEAR) - 1\n",
    "\n",
    "def calculate_period_rental_cost(metrics: MetricsContainer) -> float:\n",
    "    return metrics[\"period_rental_cost\"] * (1 + PERIOD_RENTAL_COST_GROWTH_RATE)\n",
    "\n",
    "def calculate_total_etf_value(metrics: MetricsContainer) -> float:\n",
    "    rental_cost_period = calculate_period_rental_cost(metrics)\n",
    "    return metrics[\"total_etf_value\"] * (1 + ETF_PERIOD_YIELD) + max(PERIOD_PAYMENT - rental_cost_period, 0)\n",
    "\n",
    "baseline_metric_configs = {\n",
    "    \"period_rental_cost\": MetricConfig(initial_value=INITIAL_PERIOD_RENTAL_COST, period_calculator=calculate_period_rental_cost, plot=False),\n",
    "    \"total_etf_value\": MetricConfig(initial_value=DEPOSIT + ADDITIONAL_UPFRONT_COSTS, period_calculator=calculate_total_etf_value),\n",
    "}"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 23,
   "metadata": {},
   "outputs": [
    {
     "data": {
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      "text/plain": [
       "<Figure size 1400x800 with 1 Axes>"
      ]
     },
     "metadata": {},
     "output_type": "display_data"
    }
   ],
   "source": [
    "metric_configs = {\n",
    "    **loan_metric_configs,\n",
    "    **property_metric_configs,\n",
    "    **income_metric_configs,\n",
    "    **baseline_metric_configs\n",
    "}\n",
    "\n",
    "simulate(TOTAL_LOAN_PERIODS, metric_configs)"
   ]
  }
 ],
 "metadata": {
  "kernelspec": {
   "display_name": "investment-simulator-KPfGkdIO-py3.12",
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