Ary (29) is engaged to Christine (28). They are both still living at home and expect to remain there until their
marriage in 7 months’ time.
Two years ago, Ary bought an investment property for $220,000 (borrowing $170,000). Other than $10,000 in a savings account, Ary does not have any other investments.
Christine has $20,000 invested in term deposits.
They are unsure what their living arrangements will be once they marry and have come to you for advice. Currently they are considering:
· Selling Ary’s investment property and using the proceeds to buy their own home;
· Using their savings as a deposit and borrowing additional funds to acquire a home to live in;
· Moving into the investment property for a couple of years before selling it and buying a bigger home;
· Renting a property for next five years and continue investing their savings.
REQUIRED:
a) Before you can advise Ary and Christine on what they should do, you will need more information. What are two questions you would ask Ary and Christine? Justify your answer.
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