Essay Housing Affordability Investigation – Arts & Humanities Assignment Help

Assignment Task

 

Task – Housing Affordability Investigation

Is buying your own home a dream or a reality?

Your task is to investigate the affordability of buying your home in today’s housing market. The key objectives for this task are to determine your potential income and savings, the inflation of house prices and alternate income sources (such as shares). As a potential home owner you will need to consider the amount and frequency of loan repayments and managing your finances.

Part A – Income 1. Visit Living in Australia and choose an occupation from the given list.

2. Using the ‘approximate annual income’, determine your annual pay.

3. Given the average person saves 30% of their annual pay, determine the amount you can save yearly. 4. Use realestate.com.au to find a property for sale in your local area which has a listed price. (Do not choose auction or POA.)

Part B – Inflation and Affordability

Two of the biggest challenges facing first home buyers are the 20% deposit and the cost of stamp duty tax. 1. Using the Stamp Duty Calculator, determine the stamp duty payable on your house (selecting ‘yes’ for the first home owner option).

2. In order to get a home loan without having to pay mortgage insurance, most financial institutions will require you to have a deposit of 20% of the value of the house.

The predicted average house price appreciation is at 3.25% pa and assume that this trend continues.

Complete Worksheet 1 in the MS-F4 Investment and Loans – Assessment Task – Spreadsheet to determine:

a. The number of years required in order for you to save enough money for the house deposit and stamp duty.

b. The amount of money required for the deposit including the cost of stamp duty.