fin_value_CarryCost: Work the carry cost of a house

In umx: Structural Equation Modeling and Twin Modeling in R

Work the carry cost of a house

Description

fin_value_CarryCost uses the purchase price, holding expenses, appreciation, and opportunity cost to compute a carrying cost for a house purchase.

Usage

fin_value_CarryCost(
  property_cost,
  appreciation = 0.02,
  QQQ = 0.14,
  rent_saved = 0.04,
  interest = 0.06,
  rates = 5000,
  insurance = 2000,
  maintenance = 0.015,
  years = 5,
  inflation = 0.025,
  verbose = TRUE
)

Arguments

property_cost	Purchase price
appreciation	rate of property increase
QQQ	Opportunity cost of leaving money in the markets
rent_saved	But now you have to rent somewhere
interest	Cost of borrowing
rates	Council rates per year at t=1 (absolute).
insurance	The cost of property owners insurance per year at t=1 (absolute).
maintenance	New kitchen roof etc. If <1, treated as rate of property_cost at t=1; if >=1, treated as absolute per year at t=1.
years	Holding time (integer >=1).
inflation	Annual inflation applied to rent, rates, insurance and maintenance (default .025). Set 0 to recover flat model. Property and QQQ remain compound totals.
verbose	Logical; if TRUE, print a one-line per-year schedule when years <= 20.

Value

Invisibly the total net cost of buying (scalar). When verbose is TRUE, also returns a schedule data.frame as attribute "schedule".

See Also

• fin_value_interest(), fin_tax_NI(), fin_value_percent()

Other financial functions: fin_options_Greeks(), fin_options_LeapSimulate(), fin_options_plotGreeks(), fin_options_teach(), fin_stock_CAGR(), fin_stock_justifiedPE(), fin_stock_target(), fin_stock_ticker(), fin_stock_valuation(), fin_tax_FIF(), fin_tax_NI(), fin_value_CAGR(), fin_value_NPV(), fin_value_interest(), fin_value_percent()

Examples

fin_value_CarryCost(property_cost=1.2e6)
fin_value_CarryCost(property_cost=1.1e6, appreciation = .035, QQQ=.15, years=10)
fin_value_CarryCost(property_cost=1.2e6, inflation=0) # flat, recovers pre-inflation total

umx documentation built on Oct. 11, 2026, 5:07 p.m.