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Updated Financials #9

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Updated Financials #9

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ca43efb
- Tweaked sources of payment when purchasing
michael-lee2 Aug 31, 2021
78ec148
- Fix where money goes upon sales
michael-lee2 Aug 31, 2021
e61740a
Big updates to financial portfolio features
michael-lee2 Dec 28, 2021
d07ba95
Merge branch 'main' into main
michael-lee2 Dec 28, 2021
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13 changes: 11 additions & 2 deletions brownian_motion.py
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Original file line number Diff line number Diff line change
Expand Up @@ -2,7 +2,7 @@

# function is default set to have time horizon of 40 years with monthly step size
# Returns numpy array
def simulate_brownian_motion(initial, time=40, steps=480, mu=0.1, sigma=0.05):
def simulate_brownian_motion(initial, mu, sigma, time=40, steps=480):

# essentially just returns an array that represents a line graph of an initial value moving through time
# with random variations (e.g like a stock chart line)
Expand All @@ -14,5 +14,14 @@ def simulate_brownian_motion(initial, time=40, steps=480, mu=0.1, sigma=0.05):
s = initial * np.exp(x)
return s

def simulate_brownian_motion2(initial, mu, sigma, time=40, steps=480):


# essentially just returns an array that represents a line graph of an initial value moving through time
# with random variations (e.g like a stock chart line)
dt = time / steps
t = np.linspace(0, time, steps)
w = np.random.standard_normal(size=steps)
w = np.cumsum(w) * np.sqrt(dt)
x = (mu - 0.5 * sigma ** 2) * t + sigma * w
s = initial * np.exp(x)
return s
50 changes: 29 additions & 21 deletions environment.py
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Original file line number Diff line number Diff line change
Expand Up @@ -7,19 +7,17 @@
from taxes import Taxes


# Probably want to make this a class to allow for multiple agents to run concurrent

class Environment:
def __init__(self):
self.owned_properties = []

self.post_tax_money = 100_000
# pre-tax money is money earned during the month that is subject to tax
self.pre_tax_money = 0
self.saved_monthly_income = 5_000 # placeholder
self.annual_net_income = 0

self.Sim = Simulation()
self.personal_finances = Taxes(100_000, 0.02, 0.3)
self.personal_finances = Taxes(100_000, 0.02, 0.3) # Cash, inflation, split

def update_environment(self, months):
# ---Updates Variables ---
Expand All @@ -29,6 +27,8 @@ def update_environment(self, months):
available_property = self.Sim.new_properties()

self.pre_tax_money += self.saved_monthly_income

self.post_tax_money = self.personal_finances.tfsa + self.personal_finances.rrsp + self.personal_finances.investing_account + self.personal_finances.cash_account
self.annual_net_income += self.saved_monthly_income

self.interest_rate = self.Sim.interest_rate[months]
Expand All @@ -37,17 +37,24 @@ def update_environment(self, months):


n_dels = 0
print("TFSA:", self.personal_finances.tfsa)
print("RRSP:", self.personal_finances.rrsp)
print("Investing Account", self.personal_finances.investing_account)
print("Cash Account", self.personal_finances.cash_account)

# Taxes
if (months + 1) % 12 == 0:
self.personal_finances.update_taxes(self.annual_net_income, 0.015, 0.3)
print(self.annual_net_income)
print(self.personal_finances.tfsa)
print(self.personal_finances.rrsp)
print(self.personal_finances.investing_account)
print(self.personal_finances.cash_account)
#self.post_tax_money = self.personal_finances.tfsa + self.personal_finances.rrsp + self.personal_finances.investing_account + self.personal_finances.cash_account
self.annual_net_income = 0
self.personal_finances.update_taxes(self.pre_tax_money, 0.015, 0.3, 1)
self.pre_tax_money = 0
self.personal_finances.accrued_net_income = 0
else:
self.personal_finances.update_taxes(self.pre_tax_money, 0.015, 0.3, 0)
self.pre_tax_money = 0
print(self.personal_finances.income_deduction)
self.personal_finances.income_deduction = 0

#self.post_tax_money = self.personal_finances.tfsa + self.personal_finances.rrsp + self.personal_finances.investing_account + self.personal_finances.cash_account


# Prints Global Simulation Attributes for User
print("Month:", months + 1, "Interest Rate: {0:.2f}%".format(self.interest_rate * 100),
Expand All @@ -56,29 +63,30 @@ def update_environment(self, months):
# Properties Owned
for i in range(len(temporary_list)):
capital_gains = 0
self.annual_net_income = self.annual_net_income + temporary_list[i].cash_flow + temporary_list[
i].monthly_principal_payments
self.pre_tax_money += temporary_list[i].cash_flow
#self.annual_net_income = self.annual_net_income + temporary_list[i].cash_flow + temporary_list[
# i].monthly_principal_payments # Previous net income + curent cash flow + principal payments are all taxable

self.pre_tax_money += temporary_list[i].cash_flow + temporary_list[i].monthly_principal_payments
self.personal_finances.income_deduction += temporary_list[i].monthly_principal_payments
print(
"Property: {0} | Price: ${1:,.2f} | Mortgage Payment: ${2:,.2f} | Principal Payment: ${3:,.2f} | Interest Payment: ${4:,.2f} | Loan Outstanding ${5:,.2f}".format(
i + 1,
temporary_list[i].price, temporary_list[i].total_monthly_payments,
temporary_list[i].monthly_principal_payments, temporary_list[i].monthly_interest_payments,
temporary_list[i].loan_outstanding))
self.post_tax_money, n_dels, self.capital_gains = decision(temporary_list[i], self.personal_finances.tfsa, self.personal_finances.rrsp, self.personal_finances.investing_account, self.personal_finances.cash_account, self.interest_rate,
self.personal_finances, n_dels, self.capital_gains, rrsp_used, investment_used = decision(temporary_list[i], self.personal_finances, self.interest_rate,
self.owned_properties, i, n_dels)

self.post_tax_money -= self.capital_gains
self.pre_tax_money += self.capital_gains

self.annual_net_income += capital_gains * 0.5
self.pre_tax_money += self.capital_gains * 0.5 + rrsp_used
#self.annual_net_income += capital_gains * 0.5

# Properties to Buy
for i in range(3):
print(
"Purchase Price: {0:0.2f}, Rental Yield: {1:0.2f}%, Expenses Rate: {2:0.2f}%, Appreciation Rate: {3:0.4f}% ".format(
available_property[i].purchase_price, available_property[i].rent_yield * 100,
available_property[i].expenses_rate * 100, available_property[i].appreciation_rate * 100 * 12))
self.post_tax_money, n_dels, self.capital_gains = decision(available_property[i], self.personal_finances.tfsa, self.personal_finances.rrsp, self.personal_finances.investing_account, self.personal_finances.cash_account, self.interest_rate,
self.personal_finances, n_dels, self.capital_gains, rrsp_used, investment_used = decision(available_property[i], self.personal_finances, self.interest_rate,
self.owned_properties, i, n_dels)


47 changes: 23 additions & 24 deletions simulation.py
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Original file line number Diff line number Diff line change
Expand Up @@ -11,9 +11,13 @@ class Simulation:

# Not sure how accurate these motions with these initials will be
def __init__(self):
self.interest_rate = simulate_brownian_motion(.03)
self.inflation = simulate_brownian_motion(.02)
self.cash_appreciation = simulate_brownian_motion(.08)
# Interest rate (%)
self.interest_rate = simulate_brownian_motion(initial=0.05, mu=0, sigma=0.01)
# Inflation rate (%)
self.inflation = simulate_brownian_motion(initial=0.02, mu=0.00, sigma=0.005)
# Stock appreciation, modelled roughly after S&P 500.
# -- NOTE -- Let's add some market cycles to simulate bear + bull markets.
self.cash_appreciation = simulate_brownian_motion(initial=1, mu=0.083, sigma=0.1589)

@staticmethod
def new_properties():
Expand Down Expand Up @@ -105,9 +109,9 @@ def update_properties(owned_property_array):
i].total_monthly_payments

# Receives decision from player or agent on current property shown
def decision(property, tfsa, rrsp, investment_account, cash_account, interest_rate, owned_properties, index, n_dels):
def decision(property, financial_accounts, interest_rate, owned_properties, index, n_dels):

total_liquid_assets = tfsa + rrsp + investment_account + cash_account
total_liquid_assets = financial_accounts.tfsa + financial_accounts.rrsp + financial_accounts.investing_account + financial_accounts.cash_account

# Shows options to player
print("""
Expand All @@ -124,6 +128,8 @@ def decision(property, tfsa, rrsp, investment_account, cash_account, interest_ra

# Init Variable
capital_gains = 0
rrsp_used = 0
investment_used = 0

# --- Decision effects ---
# Mortgage, 20 year + 20% down
Expand All @@ -136,11 +142,9 @@ def decision(property, tfsa, rrsp, investment_account, cash_account, interest_ra
property.term_length = 240

# Adds new property to list of owned properties, removes down payment from cash account
total_liquid_assets = total_liquid_assets - property.purchase_price * 0.2
tfsa, rrsp, cash_account, investment_account, investment_used, rrsp_used = payment_selection(tfsa, rrsp,
cash_account,
investment_account,
property.purchase_price * 0.2)
#total_liquid_assets = total_liquid_assets - property.purchase_price * 0.2
financial_accounts, investment_used, rrsp_used = payment_selection(financial_accounts, property.purchase_price * 0.2)

owned_properties.append(property)

# Mortgage, 30 year + 20% down
Expand All @@ -153,11 +157,8 @@ def decision(property, tfsa, rrsp, investment_account, cash_account, interest_ra
property.status = 1

# Adds new property to list of owned properties, removes down payment from cash account
total_liquid_assets = total_liquid_assets - property.purchase_price * 0.2
tfsa, rrsp, cash_account, investment_account, investment_used, rrsp_used = payment_selection(tfsa, rrsp,
cash_account,
investment_account,
property.purchase_price * 0.2)
#total_liquid_assets = total_liquid_assets - property.purchase_price * 0.2
financial_accounts, investment_used, rrsp_used = payment_selection(financial_accounts, property.purchase_price * 0.2)
owned_properties.append(property)

# Bought in full, no mortgage
Expand All @@ -170,20 +171,18 @@ def decision(property, tfsa, rrsp, investment_account, cash_account, interest_ra
property.status = 1

# Adds new property to list of owned properties, removes full purchase price from cash account
total_liquid_assets = total_liquid_assets - property.purchase_price
tfsa, rrsp, cash_account, investment_account, investment_used, rrsp_used = payment_selection(tfsa, rrsp,
cash_account,
investment_account,
property.purchase_price)
#total_liquid_assets = total_liquid_assets - property.purchase_price
financial_accounts, investment_used, rrsp_used = payment_selection(financial_accounts, property.purchase_price)
owned_properties.append(property)

# Sells property
elif dec == '4' and property.status == 1:
# Cash account increased by difference between sale price and amount of debt still owing
total_liquid_assets = total_liquid_assets + property.price - property.loan_outstanding
# Adds change in property value since purchase/refinance to capital gains account
capital_gains = property.accrued_gains + property.price - property.purchase_price

# Pre-allocated cash account increased by difference between sale price and amount of debt still owing
financial_accounts.remaining_cash = financial_accounts.remaining_cash + property.price - property.loan_outstanding - capital_gains

# Future Note: return gains to main.py or taxes.

# Property removed from list of owned properties.
Expand All @@ -194,7 +193,7 @@ def decision(property, tfsa, rrsp, investment_account, cash_account, interest_ra
# Refinances property, leaves 20% of property value in as equity
elif dec == '5' and property.status == 1:
# Cash account increased by difference between property value and the sum of debt owing and 20% down payment
total_liquid_assets = total_liquid_assets + property.price - property.loan_outstanding - property.price * 0.2
financial_accounts.remaining_cash = financial_accounts.remaining_cash + property.price - property.loan_outstanding - property.price * 0.2
# Resets the property attributes, to reflect the new mortgage
property.accrued_gains = property.price - property.purchase_price # Tracks capital gains
property.purchase_price = property.price # Resets house with refinance
Expand All @@ -214,7 +213,7 @@ def decision(property, tfsa, rrsp, investment_account, cash_account, interest_ra
else:
print("Invalid Choice")
# Returns updated cash account and # of properties sold thus far in the month
return total_liquid_assets, n_dels, capital_gains
return financial_accounts, n_dels, capital_gains, rrsp_used, investment_used



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