def test__calculate_monthly_payment(self):
loan = Mortgage()
self.assertEquals(loan.monthly_payment, 0)
loan.amortization_schedule = np.asarray([5] * 12)
loan._calculate_monthly_payment()
self.assertEquals(loan.monthly_payment, 5)
def test__calculate_net_income_taxable(self):
real_estate_calc = RealEstateCalc()
# Not primary residence, no mortgage
real_estate_calc.is_primary_residence = False
real_estate_calc.total_income = 1500000
real_estate_calc.total_expense = 300000
real_estate_calc.depreciation = 200000
real_estate_calc.mortgage = None
real_estate_calc._calculate_net_income_taxable()
self.assertEquals(real_estate_calc.net_income_taxable, 1000000)
# Mortgage but already matured
real_estate_calc.mortgage = Mortgage(
principal=20e6,
tenor=10,
rate=0.01,
)
real_estate_calc.calc_year = 10
real_estate_calc._calculate_net_income_taxable()
self.assertEquals(real_estate_calc.net_income_taxable, 1000000)
# Mortgage and still active
real_estate_calc.calc_year = 9
real_estate_calc._calculate_net_income_taxable()
self.assertEquals(real_estate_calc.net_income_taxable, 1000000 - 11344)
# Primary residence
real_estate_calc.is_primary_residence = True
real_estate_calc._calculate_net_income_taxable()
self.assertEquals(real_estate_calc.net_income_taxable, 0)
def test__calculate_loan_periods(self):
loan = Mortgage()
loan.tenor = 1
loan._calculate_loan_periods()
np.testing.assert_array_equal(loan.loan_periods, list(range(1, 13, 1)))
loan.tenor = 2
loan._calculate_loan_periods()
np.testing.assert_array_equal(loan.loan_periods, list(range(1, 25, 1)))
def test__calculate_all_fields(self):
"""A basic regression test to confirm that all required functions are called as part of calculate_all_fields"""
loan = Mortgage(principal=200e3, tenor=30, rate=0)
expected = [200000 / 30 / 12] * 30 * 12
np.testing.assert_almost_equal(loan.amortization_schedule,
expected,
decimal=2)
self.assertAlmostEquals(loan.monthly_payment,
200000 / 30 / 12,
places=2)
loan = Mortgage(principal=200e3, tenor=30, rate=6.5 / 100)
expected = [1264.14] * 30 * 12
np.testing.assert_almost_equal(loan.amortization_schedule,
expected,
decimal=2)
self.assertAlmostEquals(loan.monthly_payment, 1264.14, places=2)
def test__calculate_amortization_schedule(self):
loan = Mortgage()
loan.tenor = 1
loan.interest_schedule = np.asarray(range(1, 13, 1))
loan.principal_schedule = np.asarray(range(12, 0, -1))
loan._calculate_amortization_schedule()
expected = [13] * 12
np.testing.assert_array_equal(loan.amortization_schedule, expected)
def test__calculate_mortgage_amount_outstanding(self):
real_estate_calc = RealEstateCalc()
self.assertEquals(real_estate_calc.mortgage_amount_outstanding, 0)
real_estate_calc.mortgage = Mortgage(principal=24000000,
tenor=2,
rate=0)
real_estate_calc.calc_year = 0
real_estate_calc._calculate_mortgage_amount_outstanding()
self.assertEquals(real_estate_calc.mortgage_amount_outstanding,
12000000)
real_estate_calc.calc_year = 1
real_estate_calc._calculate_mortgage_amount_outstanding()
self.assertEquals(real_estate_calc.mortgage_amount_outstanding, 0)
def test__calculate_net_income_before_taxes(self):
real_estate_calc = RealEstateCalc()
real_estate_calc.total_income = 5000000
real_estate_calc.total_expense = 3000000
real_estate_calc._calculate_net_income_before_taxes()
self.assertEquals(real_estate_calc.net_income_before_taxes, 2000000)
# Active mortgage
real_estate_calc.mortgage = Mortgage() # Create a dummy mortgage and override values
real_estate_calc.mortgage.monthly_payment = 100000
real_estate_calc.mortgage.tenor = 10
real_estate_calc.calc_year = 9
real_estate_calc._calculate_net_income_before_taxes()
self.assertEquals(real_estate_calc.net_income_before_taxes, 2000000 - 12 * 100000)
# Mortgage already paid off
real_estate_calc.calc_year = 10
real_estate_calc._calculate_net_income_before_taxes()
self.assertEquals(real_estate_calc.net_income_before_taxes, 2000000)
def test__calculate_total_expense(self):
real_estate_calc = RealEstateCalc()
real_estate_calc.maintenance_expense = 100000
real_estate_calc.monthly_fees_annualized = 200000
real_estate_calc.rental_management_total_expense = 300000
real_estate_calc.property_tax_expense = 400000
real_estate_calc._calculate_total_expense()
self.assertEquals(real_estate_calc.total_expense, 1000000)
# Active mortgage
real_estate_calc.mortgage = Mortgage(
) # Create a dummy mortgage and override values
real_estate_calc.mortgage.monthly_payment = 100000
real_estate_calc.mortgage.tenor = 10
real_estate_calc.calc_year = 9
real_estate_calc._calculate_total_expense()
self.assertEquals(real_estate_calc.total_expense, 2200000)
# Mortgage already paid off
real_estate_calc.calc_year = 10
real_estate_calc._calculate_total_expense()
self.assertEquals(real_estate_calc.total_expense, 1000000)
def test__calculate_home_loan_deduction(self):
real_estate_calc = RealEstateCalc()
real_estate_calc.mortgage = Mortgage(
principal=60e6,
tenor=30,
rate=0.01,
)
# Brand new and qualifying
real_estate_calc.is_primary_residence = True
real_estate_calc.size = 60
real_estate_calc.calc_year = 9
real_estate_calc.income_tax_calculator = IncomeTaxCalc()
real_estate_calc.income_tax_calculator.taxable_income = 20000000
real_estate_calc.age = 0
real_estate_calc._calculate_home_loan_deduction()
self.assertEquals(real_estate_calc.home_loan_deduction, 400000)
# Not brand new and qualifying
real_estate_calc.age = 1
real_estate_calc._calculate_home_loan_deduction()
self.assertEquals(real_estate_calc.home_loan_deduction, 200000)
# Qualifying but mortgage loan was small
real_estate_calc.mortgage = Mortgage(
principal=1e6,
tenor=11,
rate=0.01,
)
real_estate_calc._calculate_home_loan_deduction()
self.assertEquals(real_estate_calc.home_loan_deduction, 192077)
# Test some disqualifications
real_estate_calc.is_primary_residence = False
real_estate_calc._calculate_home_loan_deduction()
self.assertEquals(real_estate_calc.home_loan_deduction, 0)
real_estate_calc.is_primary_residence = True
real_estate_calc._calculate_home_loan_deduction()
self.assertNotEquals(real_estate_calc.home_loan_deduction, 0)
real_estate_calc.size = 50
real_estate_calc._calculate_home_loan_deduction()
self.assertEquals(real_estate_calc.home_loan_deduction, 0)
real_estate_calc.size = 60
real_estate_calc._calculate_home_loan_deduction()
self.assertNotEquals(real_estate_calc.home_loan_deduction, 0)
real_estate_calc.calc_year = 10 # Still less than mortgage tenor but can't deduct for more than 10 years
real_estate_calc._calculate_home_loan_deduction()
self.assertEquals(real_estate_calc.home_loan_deduction, 0)
real_estate_calc.calc_year = 9
real_estate_calc._calculate_home_loan_deduction()
self.assertNotEquals(real_estate_calc.home_loan_deduction, 0)
real_estate_calc.income_tax_calculator.taxable_income = 30000000
real_estate_calc._calculate_home_loan_deduction()
self.assertEquals(real_estate_calc.home_loan_deduction, 0)
real_estate_calc.income_tax_calculator.taxable_income = 20000000
real_estate_calc._calculate_home_loan_deduction()
self.assertNotEquals(real_estate_calc.home_loan_deduction, 0)
itc = real_estate_calc.income_tax_calculator
real_estate_calc.income_tax_calculator = None
real_estate_calc._calculate_home_loan_deduction()
self.assertEquals(real_estate_calc.home_loan_deduction, 0)
real_estate_calc.income_tax_calculator = itc
real_estate_calc._calculate_home_loan_deduction()
self.assertNotEquals(real_estate_calc.home_loan_deduction, 0)
mortgage = real_estate_calc.mortgage
real_estate_calc.mortgage = None
real_estate_calc._calculate_home_loan_deduction()
self.assertEquals(real_estate_calc.home_loan_deduction, 0)
real_estate_calc.mortgage = mortgage
real_estate_calc._calculate_home_loan_deduction()
self.assertNotEquals(real_estate_calc.home_loan_deduction, 0)
def _calculate_mortgage(self):
if self.purchase_price_financed > 0:
self.mortgage = Mortgage(principal=self.purchase_price_financed,
tenor=self.mortgage_tenor,
rate=self.mortgage_rate)
def test__calculate_principal_schedule(self):
loan = Mortgage()
loan.principal = 200e3
loan.tenor = 30
loan.loan_periods = np.arange(30 * 12) + 1
loan.rate = 0
loan._calculate_principal_schedule()
expected = [200000 / 30 / 12] * 30 * 12
self.assertEquals(loan.principal_schedule, expected)
loan.rate = 6.5 / 100
loan._calculate_principal_schedule()
# Assert size, first element, last element, and sum
self.assertEquals(len(loan.principal_schedule), 30 * 12)
self.assertAlmostEquals(loan.principal_schedule[0], 180.80, places=2)
self.assertAlmostEquals(loan.principal_schedule[-1], 1257.33, places=2)
self.assertAlmostEquals(sum(loan.principal_schedule), 200e3, places=2)
def test__calculate_interest_schedule(self):
loan = Mortgage()
loan.principal = 200e3
loan.tenor = 30
loan.loan_periods = np.arange(30 * 12) + 1
loan.rate = 0
loan._calculate_interest_schedule()
expected = [0] * 30 * 12
np.testing.assert_array_equal(loan.interest_schedule, expected)
loan.rate = 6.5 / 100
loan._calculate_interest_schedule()
# Assert size, first element, last element, and sum
self.assertEquals(len(loan.interest_schedule), 30 * 12)
self.assertAlmostEquals(loan.interest_schedule[0], 1083.33, places=2)
self.assertAlmostEquals(loan.interest_schedule[-1], 6.81, places=2)
self.assertAlmostEquals(sum(loan.interest_schedule),
255088.98,
places=2)