Case Study:

Jane McDonald is a 28-year-old solicitor at a law firm in Sydney. Jane rents a studio apartment near the Sydney central business district, paying $650 per week. She estimates her other living expenses amount to $24,000 per annum. She has an income of $95,000 per annum after tax. She has a balance in her savings account of $80,000, which she has accumulated since commencing full-time work at the age of 23.

She owns a late model 2016 Honda Civic worth $10,000 and has no plans to purchase a new car. She has a credit card with a limit of $5,000, which she fully pays off each month.

Recently, Jane received an inheritance from her grandmother of $150,000. Jane is unsure what to do with these funds. She has always entertained the hope that one day she would be able to buy a property of her own to live in, rather than paying, as she puts it, 'dead-end rent'. However, until recently this seemed an impossible dream.

The impact from COVID-19 in 2020 has created some uncertainty in her life. The major issue has been concerns regarding job security. Whilst she has been told by her manager that her job is safe, some other solicitors in her firm recently lost their jobs.

Based on the case study, please discuss the following:

1. How monetary and fiscal changes influence the Labour market conditions? and based on this influences, should Jane buy a property or invest her cash elsewhere?
2. How monetary and fiscal changes influence Interest rate environment? and based on this influences, should Jane buy a property or invest her cash elsewhere?
3. How monetary and fiscal changes influence Global economic influences on the Australian economy? and based on this influences, should Jane buy a property or invest her cash elsewhere?
4. How monetary and fiscal changes influence Local property market conditions? and based on this influences, should Jane buy a property or invest her cash elsewhere?
5. How monetary and fiscal changes influence Domestic equity market performance? and based on this influences, should Jane buy a property or invest her cash elsewhere?