Background

You are a professional planner in BC, Canada, and you emphasize a holistic approach to helping your clients to reach their financial goals. In addition to your financial planning and investment service, you provide consulting services on real estate and mortgage financing. Your compensation is based on the service you provide to your client, and you do not receive any compensation from referrals to other professionals. You obtained a masters degree in finance from the University of British Columbia, where you met Eric West.

Eric graduated from the university and has worked as a senior consultant for the last five years. He met his wife, Kim Lee, three years ago. They married last month and currently rent a bedroom apartment in downtown Vancouver.

They both work downtown and do not own a vehicle. Both are in their late 20s and enjoy the urban lifestyle. After getting married, they have discussed and considered purchasing a home on their own.

Currently, Eric works as a senior consultant in a downtown marketing firm and just got a promotion as an associate director. He loves his work and the company, and his annual compensation is $85,000 before income tax. Eric grew up in a middle-class neighborhood in Vancouver west, and he received $250,000 as a heritage from his grandparents. He is always smart with his money, and he only uses the funds to cover his education and wedding expenses. He has kept the rest in mutual funds. His portfolio has grown to $350,000 in his investment account, and he is willing to use his savings toward their home purchase. Eric does not spend much, but he is a big-time golfer. He holds an annual membership of the golf country club in Vancouver west with his father. He believes it is important for him to be close to his father and spend time with him even though it costs $$6,000 per year.

Kim majored in public health and currently works as a social worker for a nonprofit organization called Mosaic Society, which is dedicated to social issues and helping disadvantaged families. Kim has held the position for the past five years. The compensation is moderate at $55,000 annually, but the job fulfills her value. When Kim got married, her parents gave her $100,000 as a wedding gift, and she is planning to use this money to pay off her student loan of $50,000 first. Then, she will save the rest as her emergence funds. Kim is not a shopper but likes workouts and travel. She prefers personal health and life experience over clothes. Kim has an annual budget of $5,000 for gym membership and vacation. Before they tied the knot, they moved together and shared rent of $2,500 and living expenses of $1,000 besides their individual personal expenses. After the first meeting with the couple, you were informed that they were not planning to have a kid anytime in the next five years.

They would not mind owning a car to travel between home and work if necessary, but they prefer to live close to downtown on the west side or across the bridge in North Vancouver, traveling by public transit

Requirement

Introduction: clients situation and objectives.

Qualitative research: identify criteria and assessment.

Quantitative analysis: mortgage and affordability.

Recommendation: provide three listings, property valuation, and price offer.

Conclusion: highlight solutions and disclose concerns