Planning to Purchase a First Home Essay

Words: 1868
Pages: 8

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
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In case I graduate but could not find a job after graduating, the first consequence I have to face is not having a chance to get a visa to stay and work in Australia since I have no sponsorship by a company. However, I could still apply to stay by achieving IELST and qualification requirement. The second consequence is that I would not have enough money for my saving target. This would affect the number of years that I have to save for the cash deposit and up-front costs when purchasing my first home. The worst consequence is that I would not have enough money to repay the home loan for the bank for more than three months or half a year. Therefore, the bank would repossess the property and sell it by auction. b) If I am cyclical unemployed, or my job is affected by the business cycle, I would have to try my best to seek for another job, even part-time or casual position, in order to achieve my target. If I am seasonal unemployed, I have to work more when I have a chance to work. Thus, I might save more money and could use that additional money to cover the money that I have to put into my saving account when I am seasonal unemployed. Moreover, I would have to find another job during the time I am unemployed. It could be a short-term position that would help me to earn more money to reach my goal of saving. If I am structural unemployed, I have to move to the place where my abilities are demanded or improve my skills by educating