Your new clients, Simon and Judith live in Christchurch. They own their own home with a mortgage

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Question:

Your new clients, Simon and Judith live in Christchurch. They own their own home with a mortgage equivalent to 75% of the home's market value. It is a standard P&I loan with a fixed interest rate of 4.5%, and the term expires in two months. Their house is insured but they are finding it hard to afford the premium costs since the earthquake. It is a standard house and contents policy with excesses respectively of $500 and $200. Their two cars are insured, each policy with a $100 excess, and they have no health or income protection insurance. Simon and Jude both work (as employees), they are in their late twenties and have not yet started a family. They have saved $70,000 which is on term deposit at the bank and both have continued to contribute to their Kiwi Saver Schemes at a rate of 6%. Jude is originally from England and has kept some GBP15,000 in her UK bank account to use when they go on holiday. She is trying to decide whether or not to transfer some or all of those funds to New Zealand. If they did that, they would look at options such as using the funds to try and get themselves a small investment property (outside Christchurch), or investing in the share market.

If inflation is consider as the first economic factor, what would be a second economic factor, third, fourth and 5th economic factor affecting Simon and Judith?

Economic factor that could change and impact on Simon and Judith's situation a. Second economic factor