GENC3003 Week 6 Journal

Due to the fact that we are international students, so if we want to invest in property, the bank may not lend money to us, which is difficult to us. I won’t say it unfair, because local citizen should be entitled to privilege. However, it is really harder to us to buy a unit or apartment if we just graduated, but want to stay here for development. My boss talked to me that I can find finance company, they may loan money to me. My boss has a discussion with me about my after-graduation salary. For example, if I work in an office after graduation, the salary we supposed to be $1000/pw, so $4000/pm in a very ideal condition. If my boy friend has the same salary as me, the total amount is $8000/pm. We buy a two-bedroom apartment worth $400,000, and we pay 20% capital which is $80,000, so the remaining loan is $320,000. If we plan pay off the loan within 10 years, we have to pay to the bank $32,000 annually, which is almost $2666 per month, not including the interest. If we assume the interest rate is 6% per month, the total amount is $2825 per month, almost equals to $3000. Hence, $5000 is left. Then, if we buy a car without loan, only including monthly gas and any other fees, we just estimate $500/pm. The average strata, council and water fees are $500/pm, so $4000 left. Living expenditures including buying clothes, dining out, food, appliances and others are supposed to be $1000/pm. Therefore, we only can save $3000/pm without children. If I want to buy some luxury or have a holiday, this money cannot be saved. Therefore, how can we make a better life? Sometimes I am confused about the future, because I want to make a wonderful life without considering money. I have to do business, I must invest, but now I do not have experience, so I have to learn theory first and then apply it into practice.