A unit in the Brisbane suburbs. A 2-bedroom unit in Fairfield. This option is close to the place they work. There is a strict body-corporate that you need to ask permission for pets, major alterations, etc. However, there are already water saving devices installed and they are allowed to install solar on the roof of the unit, something they value greatly.

Property cost: $550,000 (Offers over $530,000 they think they can get it for $550,000)

Other costs when buying the property: Legal fees ($1500), deed transfer tax (@3% of property value), solar

panels install ($5 000).

Ongoing costs: Repairs and maintenance fees (+$60/month), Council fees (+$80/month), Sewage and water

(+40/month), body corporate fees (+$200/month). Compared to renting there is an estimated cost saving of

$80/month, because of the roof-solar.

Selling in 10 years: The couple expect to sell the unit for $600,000 in 10 years. They would pay off their loan at

that time. You would also have to pay selling fees to your real estate agent (@4.0% of the selling price).

Benefits: close to work, close to their favourite YumChum restaurant, and are allowed to install solar on their

roof.

Alternative: rent. If they do not buy this place, they will stay at a place they are temporarily renting now, which is a house a bit further out of Brisbane. They would use public transport most days for commuting, costing them $120 a month (includes water & sewage bills). The rent is cheap for a 3-bedroom house, costing only $1600 in rent a month, and the landlord has promised not to increase it until they leave. The landlord pays for any repairs and maintenance costs.

Interest rates.

You have also identified two lenders (assume the current rates apply in the year 2028):

Westpac (https://www.westpac.com.au/personal-banking/home-loans/fixed/).

Bank Australia(https://www.bankaust.com.au/home-loans). Assume the unit home is eligible for the Clean Energy

Home Loan 7 Star+, because of the solar panels and other items you will install, and the annual package fee can

be divided by 12 to add to your monthly bank payment.

Use a 30-year loan, use 3-year fixed rates (assume rates are compounded monthly if not specified), make monthly

payments and do not use any premium/premier home loan packages (except if it is the Clean Energy loan package as mentioned prior). Assume that you can save at the same rate as you can borrow.

1. What is the APR for Westpac? for Bank Australia? (provide the sources of where you found the rates, and the date the information was retrieved).