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.

Jane comes to you for advice relating to the following questions:

Is she able to buy her own property?

Is it the right time to buy a property?

Should she invest her cash elsewhere?

Jane is most concerned about making any decisions in light of the following factors, which have been topics of discussion amongst friends and colleagues:

1. Labour market conditions

2. Interest rate environment

3. Global economic influences on the Australian economy

4. Local property market conditions

5. Domestic equity market performance.

The case study mentions five (5) factors that Jane is concerned about being:

1.Labour market conditions

2.Interest rate environment

3.Global economic influences on the Australian economy

4.Local property market conditions

5.Domestic equity market performance.

For each factor (5 in total), you are required to provide:

1.An explanation of the factor, covering the current market environment applicable to that factor.

(1 mark)

2.An explanation of how monetary and fiscal policy changes could influence the factor. (1 mark)

3.A clear and focussed explanation of how that factor and any monetary and fiscal changes has an influence on one (1) of Jane's investment objectives ofyour choosing. (2 marks)

Total marks 20 marks