Essay on Planning to Purchase a First Home

1861 WordsAug 6, 20138 Pages
Student name: Doan My Hanh Tran Student ID: 2579564 Tutor: Jean Chin Tutorial class time: Friday – 1.30PM to 3.30PM BFIN001: Portfolio Assessment 2013 Semester 2 Assignment C (10% of Total Grade) Planning to Purchase a First Home Introduction My name is Hannah Tran. I am an international student undertaking my last year for a Bachelor of Business degree at University of Australia. I am living with my sister. However, I would like to make up a plan to purchase my first home 8 years after graduating from university. At the end of this year, I would have $6,000 set aside from home purchase. Each year, I would earn 5.5% interest on savings. I do not expect receiving gifts from my family on the date of my first home purchase, as I…show more content…
Comment This amount of annual saving is possible. $7,467.82 per year is equal to $622.32 per month, or $143.61 per week. The minimum wages for employee in Australia is $15 an hour. Even international student might work up to 20 hours a week, which is equal to $300. Since I am living with my sister in Sydney, I do not have to pay for rent. While a typical international student might save money by sharing a room with their friends, so that they might pay only $50 - $80 a week per person living in suburb areas. Transportation and food might cost up to $70 a week per person, if people buy food and cook by themselves. Plus, after my graduating, I might find a company to sponsor me. Thus, there is no working limit. I might go to work more and save more for my plan as well. Therefore, this saving target is achievable. C. Risks [4 marks] However, as future is unpredictable, there are some risks that might affect my first home financing plan. These are two examples for the risks that I might have to face: 1. Unemployment a) As there are more and more people coming to Australia to study and to seek for jobs, the competitive ratio is higher and

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