My name is Amir and I am aged 25. My fiance, Karima, is aged 24. I am
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Question:
- My name is Amir and I am aged 25. My fiancée, Karima, is aged 24. I am still living at home and expect to remain there until our marriage in 9 months. My fiancée is currently living with her parents. Two years ago, I used $70 000 that I had saved and borrowed $250 000 from a bank and bought an investment property for $320 000. Apart from $10 000 in a savings account, I have no other investments. My fiancée has $20 000 invested in fixed-term deposits. We are unsure what our living arrangements will be once we marry. We could sell the investment property and use the proceeds to buy a home, or use our savings as a deposit and borrow further funds to acquire a home to live in, or we could live in the investment property for a couple of years before selling it and buying a bigger home. Alternatively, we could rent a property for the next 5 years and continue to invest our savings.
Required:
- What are some of the qualitative issues that you may discuss with Amir and Karima in helping them with their decision?
- If they chose to use their savings to buy their own home and retain the investment property, what factors would you need to consider before recommending that the couple further increase their debt levels?
- Why might they decide to rent and, if they do decide to rent, do you consider renting to be a viable long-term solution to their housing needs?
Related Book For
Business Communication Essentials a skill based approach
ISBN: 978-0132971324
6th edition
Authors: Courtland L. Bovee, John V. Thill
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