Accounting James, 35 years old, would like to save as much money as possible for the down-payment of a house which he would like to purchase in 3-years. Currently he rents an apartment for $4,000. per month, is unmarried with additional monthly expenses totaling $6000. This includes a car loan with monthly payments of $1,500. His income per month is $15,000. He prefers a condominium but is open to other options. The price range for a condo he’s interested in is $2,000,000. -$2,500,000 . a. What is the minimum amount of money James should save for the down payment of the condominium should he decide to take out a mortgage? b. Advise James on the best option to save for the down-payment of the condominium. c. Discuss four (4) factors James should consider before purchasing a house. d. Calculate James debt-to-service ratio. Comment on the results.

Answer rating: 100% (QA)

House purchase decision The house purchase decision includes the decision regarding the purchase price mortgage selection interest rates on the mortgage and other related factors The price of the prop... View the full answer