Ary (29) is engaged to Christine (28). They are both still living at home and expect to remain there until their marriage in 7 months' time.

Two years ago, Ary bought an investment property for $220,000 (borrowing $170,000). Other than $10,000 in a savings account, Ary does not have any other investments.

Christine has $20,000 invested in term deposits.

They are unsure what their living arrangements will be once they marry and have come to you for advice. Currently they are considering:

Selling Ary's investment property and using the proceeds to buy their own home;

Using their savings as a deposit and borrowing additional funds to acquire a home to live in;

Moving into the investment property for a couple of years before selling it and buying a bigger home;

Renting a property for next five years and continue investing their savings.

a)If they chose to use their savings to buy their own home and retain the investment property, what are two factors that you would need to consider before recommending that they further increase their debt levels?