Analyse the development and investment appeal of the local Australian real estate markets.
Assume you are a mortgage broker and you have Bobby & Betty in your office. They want to take a mortgage loan to buy a condominium in Happyland. Each of them earns $2,500 per month (gross income). The current interest rate for a 30-year fixed rate mortgage loan is 5%. The underwriting standards include the following: the maximum housing related expense to income ratio is 28% and the maximum debt to income ratio is 36%. They won’t buy mortgage insurance. Property taxes are about $3,000/year and home insurance is about $600/year. Their other debt payments include a student loan of $150/month, a car loan of $300/month, and credit card minimum payment of $50/month. They will have “gift funds” for the down payment and closing costs. The closing cost is 1% of the loan amount.
1) Bobby and Betty want to get “pre-qualified.” Please calculate the maximum loan amount that they qualify.
2) Please estimate how much the “gift funds” need to be.
Analyse the development and investment appeal of the local Australian real estate markets. Compare and contrast the Australian real estate market with the real estate markets in other countries. You may choose up to four foreign real estate markets.