Real Estate and Capital Guaranteed Fund

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FOBE 302 S3 2012 Case Study
We have a couple in their early thirties. He earns $65,000 gross, after expenses, as a self employed gardener. He also has a part-time job at the local club earning $20,000 gross. She works full time as a doctor’s receptionist taking home $601 per week. They are paying off a mortgage of $350,000 on their own home worth $480,000. The mortgage costs them $2,566 per month. They own, as joint tenants, an investment unit, worth $210,000 which they paid $105,000 for 8 years ago. The tenant pays $175 per week. There is an interest only line of credit of $110,000 costing 7.5% p.a. The body corporate fees are $500 per quarter, Water rates are $250 per quarter and the Real Estate agent managing the property charges 7%. Insurance on the contents is $350 p.a. They have three children 9 months old, 2 year old and 4 year old and all attend day care while she is working. It costs them $2,470 per month. He has a Self Managed Superfund with $46,000 in cash and contributes $5,000 p.a. Her superannuation has $57,000 in a Capital Guaranteed Fund and she also salary sacrifices $5,000 p.a. They have a savings account with $10,000 for emergencies. He has a term deposit for $5,000 in case he needs cash for the business. She has a share portfolio valued at $27,500 which was valued at $27,400 when she inherited it from her mother 4 years ago. There are two personal loans; her car, with $25,500 outstanding & costing $1,556 per month with 4 years to run. The other is his utility with $18,000 outstanding and costing $933 per month with 3 years to run. They have a store credit for a home entertainment system which they have just purchased. The interest free period is 18 months. The first payment of $640 is due at the end of this month. Their credit card has an outstanding amount of $8,560 and they make the minimum payment of 3%. They are in a private health fund costing $293 p.m. They have no other insurances. He has younger brother who is living with them,...
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