Selling Ary’s investment property and using the proceeds to buy their own home
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.
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.