Real Estate Investment Analysis - Equity Growth Estimator

 

Notes:

• What problem does it solve?
  This code estimates the equity growth over time based on the appreciation of the property and mortgage payments.

• How can businesses or users benefit from customizing the code?
  Users can track how equity grows over time, helping them plan when to sell or refinance a property.

• How can businesses or users adopt the solution further, if needed?
  The model can be expanded to simulate different scenarios (e.g., changes in rent income or mortgage rates).

Actual Python Code:

class EquityGrowth:

    def __init__(self, initial_property_value, loan_balance, annual_appreciation_rate, mortgage_payment, years):

        self.initial_property_value = initial_property_value

        self.loan_balance = loan_balance

        self.annual_appreciation_rate = annual_appreciation_rate

        self.mortgage_payment = mortgage_payment

        self.years = years

    

    def equity_growth(self):

        equity = []

        for year in range(1, self.years + 1):

            # Property value grows annually

            property_value = self.initial_property_value * (1 + self.annual_appreciation_rate) ** year

            # Mortgage balance decreases over time

            loan_balance = self.loan_balance - (self.mortgage_payment * year)

            # Calculate equity (property value - loan balance)

            equity.append(property_value - loan_balance)

        return equity

# Example usage

equity = EquityGrowth(initial_property_value=500000, loan_balance=300000, annual_appreciation_rate=0.05,

                      mortgage_payment=15000, years=10)

print(f"Equity Growth Over Time: {equity.equity_growth()}")