James, 35 years old, would like to save as much money as possible for the down- payment of a house which he would like to purchase in 3-years. Currently he rents an apartment for $4,000. per month, is unmarried with additional monthly expenses totaling $6000. This includes a car loan with monthly payments of $1,500. His income per month is $15,000. He prefers a condominium but is open to other options. The price range for a condo he's interested in is $2,000,000. to $2,500,000. a. What is the minimum amount of money James should save for the down payment of the condominium should he decide to take out a mortgage? b. Advise James on the best option to save for the down-payment of the condominium. c. Discuss four (4) factors James should consider before purchasing a house. d. Calculate James debt-to-service ratio. Comment on the results.

James, 35 years old, would like to save as much money as possible for the down- payment of a house which he would like to purchase in 3-years. Currently he rents an apartment for $4,000. per month, is unmarried with additional monthly expenses totaling $6000. This includes a car loan with monthly payments of $1,500. His income per month is $15,000. He prefers a condominium but is open to other options. The price range for a condo he's interested in is $2,000,000. to $2,500,000. a. What is the minimum amount of money James should save for the down payment of the condominium should he decide to take out a mortgage? b. Advise James on the best option to save for the down-payment of the condominium. c. Discuss four (4) factors James should consider before purchasing a house. d. Calculate James debt-to-service ratio. Comment on the results.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter9: Obtaining Affordable Housing

Section: Chapter Questions

Problem 1DTM

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