xavils

Thanks for the concern. The logic behind the scenes goes like this:

- You pay 20K for a house.

- You owe 80K + 80K * 2.5% * 40 years. That's your total debt.

- If you want to cancel the mortgage, you must pay 80K, and your net worth will go up because you do not have the 40 year mortgage anymore (even if you just paid 80K).

- If you buy and sell one year after, the same happens with mortgage towards your net worth. In terms of savings, during 1 year you will get approx 600 * 12 rent, -350 * 12 mortgage. That's 3K more. Then your remaining savings will go up 1% (as savings account return) which is around 200. Last, Since it's a boom in the economic cycle, while your debt will have diminished, the value of your house will have increased. So basically you sell the house for more, owe less and that is the result.

This situation is what makes the world go crazy over real estate, become overbought and then, BOOM. Economic crisis.

Well, it's a game and games have music. I see what you mean though. Probably should start music after game starts, not before.

I'm probably biased cause my wife created the music.

Yes, I've seen a few companies do this in recent years. It's a nice concept.

You need a 10.8% return over 100 years to become a billionaire with $38000.

10.8% would not be unheard of, over a shorter span at least, right?

Thanks, I'm so lame!

I guess only mods can do it. My bad!

Basic current assumptions (approximate):

- Boom 10 years - Recession 5 years

- Initial property price, rounded current price in city center for 2bdr in each city. Hong Kong is a little bit too expensive but I currently live there and it's so expensive that it had to be exagerated.

- The 20% you need to buy and 40 year mortgage is how the property sector was working until 2008 in my hometown, Barcelona, before the recession.

- Mortgage rate is 3%

- Rent you receive is around 7% of property value annually

- Inflation is +4% annually during boom and -6% during recession

- Savings return is around 1% annually

- owned property devaluation happens during 15 years until it reaches a minimum and then keeps up with recession/boom cycles

Yep, Adventure Capitalist was my inspiration, I was addicted to the game a few months ago and thought it would be nice to do it with real estate. And to challenge my coding skills as well.

I will improve boom/bust soon.

Nice idea. Added to the list of upcoming features.

You guys are way better than me, my max is 1.3B

Love both ideas! Will definitely implement it and have global recessions with mini city-cycles. This way it will make more sense to buy one or the other.

Sorry, quite new to HN. I just add "Show HN" to the tittle?