Purchase an investment property

by | Aug 4, 2022 | Pharmacy

 

You are deciding to purchase an investment property in an ideal location you prefer. You would
addressthe following issues before buying the property (ignore all the taxes, realtor agency fee, the
transition fee in the calculation. Only consider the purchasing price as the total cost. Also, ignore
the house insurance fee, etc. Only consider monthly mortgage and rent.):
1) Decide the location and the specific real estate property you would like to buy (e.g., a
single-family house or a condo). Please provide justification why the property is chosen,
And e.g., affordability, and the potential for price appreciation. You could use the resource
like zillow.com, etc. (2 points)
2) Find out the mortgage rates for different properties and choose between a 30 or 15-year
fixed-rate mortgage (FRM). You could use bankrate.com, etc. You must justify your
decision. (2 points)
3) Calculate the monthly mortgage payment given the down payment (20% of the price) you
will make. This will be a fixed 80% payment mortgage loan with 20% down payment. It
means you will pay 20% down payment at the purchase and finance 80% with the
mortgage. Please show your calculations of monthly mortgage payments in the report. (4
points)
4) In the meantime, predict the amount of monthly rental you will be able to collect when you
lease the property out (zillow.com also provides rental price information). The rental period
is the same as your mortgage period. In other words, you will pay off your mortgage and end the
rental in the same year. Justify your rental income projection. (4 points)
5) Project the resale value of the property at the end of the mortgage payment period. You
need to use some statistics to back up your numbers. (4 points)
6) Once you have
a. the projected monthly mortgage payment
b. the monthly rental income
c. the resale value of the property at the end of the mortgage payment period
You could calculate the net present value (NPV) of the cash flow of a, b, and c respectively.
The present value must be calculated in Excel or using a financial calculator to get
the credit. The discount rate is the mortgage rate. The return on your investment property
is calculated as return = (Sum of NPV in a, b, and c/ the down payment) – 1. The calculation
needs to be shown in the report. (12 points)
7) Next, assume you don’t purchase an investment property. Instead, you invest the same
amount of your total investment in the house in the S&P500 index. Over the past 30 years,
the S&P 500 index has delivered a compound average annual growth rate of 10.7% per year. Which
one could you invest in? You need to consider the factors more than the return. Justify
your conclusion. (2 points)

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.