Your client, Donna , is currently renting an apartment near downtown Calgary. She is considering buying a house or condo but is not sure what she can afford. The whole process of potentially buying a property is overwhelming for Donna, and she wants your help. Some facts about Donna: Donna currently lives alone and would be purchasing the property alone. Donna currently pays about $1,800 in rent each month. Donna has excellent credit. Donna does not have any debt (e.g., no student loans, no car payments). Donna recurring monthly expenses include: car insurance, phone bill, internet bill. Donna wants to continue living near downtown Calgary. Donna makes about $85,000 per year. After taxes and other deductions, that amount to about $4,500 each month. Donna currently has about $60,000 in liquid savings (money in her savings account that is not invested). Donna currently has about $90,000 in her TFSA (Tax-Free Savings Account) invested in broad market index ETFs (exchange-traded funds). She could potentially use some of this money as a down payment. But she would prefer not to, if possible, because this money is invested for retirement. And accessing this money would mean selling the ETFs, and she is worried about potentially selling for a loss. Donna is a fairly numerate person; in particular, she is familiar with the terminology and formulas we discussed in this course. This is all we know about Donna; we cannot assume other things about her. For example, it wouldn't be okay to assume that she has a rich parent who is willing to help her with the down payment. Your recommendation should be based on the above facts. Your Report Should Address the Following: Donna has the following questions: QUESTION 1: If I were to buy a house/condo, what can I afford? In particular, how much would my mortgage be? how much would my down payment be? how much would I be paying each month for this house/condo? QUESTION 2: Suppose I don't buy a house/condo, and instead continue renting in the apartment I am in now for the next 25 years and invest my savings (and any money I would potentially save each month if my rent was cheaper than a mortgage) in ETFs. Would I have more money this way? Note that Donna is not expecting you to tell her exactly what she should do. She wants you to paint a picture of her possible options so that she can make an informed decision. Your client, Donna , is currently renting an apartment near downtown Calgary. She is considering buying a house or condo but is not sure what she can afford. The whole process of potentially buying a property is overwhelming for Donna, and she wants your help. Some facts about Donna: Donna currently lives alone and would be purchasing the property alone. Donna currently pays about $1,800 in rent each month. Donna has excellent credit. Donna does not have any debt (e.g., no student loans, no car payments). Donna recurring monthly expenses include: car insurance, phone bill, internet bill. Donna wants to continue living near downtown Calgary. Donna makes about $85,000 per year. After taxes and other deductions, that amount to about $4,500 each month. Donna currently has about $60,000 in liquid savings (money in her savings account that is not invested). Donna currently has about $90,000 in her TFSA (Tax-Free Savings Account) invested in broad market index ETFs (exchange-traded funds). She could potentially use some of this money as a down payment. But she would prefer not to, if possible, because this money is invested for retirement. And accessing this money would mean selling the ETFs, and she is worried about potentially selling for a loss. Donna is a fairly numerate person; in particular, she is familiar with the terminology and formulas we discussed in this course. This is all we know about Donna; we cannot assume other things about her. For example, it wouldn't be okay to assume that she has a rich parent who is willing to help her with the down payment. Your recommendation should be based on the above facts. Your Report Should Address the Following: Donna has the following questions: QUESTION 1: If I were to buy a house/condo, what can I afford? In particular, how much would my mortgage be? how much would my down payment be? how much would I be paying each month for this house/condo? QUESTION 2: Suppose I don't buy a house/condo, and instead continue renting in the apartment I am in now for the next 25 years and invest my savings (and any money I would potentially save each month if my rent was cheaper than a mortgage) in ETFs. Would I have more money this way? Note that Donna is not expecting you to tell her exactly what she should do. She wants you to paint a picture of her possible options so that she can make an informed decision