Randall still works for the consulting firm and was recently promoted; is new salary is $25,000 per month with an additional $5,000 monthly vehicle allowance. Beth is now a teacher at a private primary school earning a salary of $6,000 per month. The couple believe they are now ready to buy their own home and provided you with the following updated information:

They hired a retired lady from their neighbourhood to provide at-home childcare during the day at a cost of $500 per week.

Beth is now 4 months pregnant; she plans to continue working after the baby is born and child-care will increase to $800 per week.

They have used their savings to pay off and cancel the $10,000 credit card.

Randall is now enrolled in the companys pension plan; he contributes 5% of his basic salary.

Annual Tax allowance is $84,000

Required:

1. Based on their current financial position and current market data, provide the couple with advice on their housing and mortgage options. (4marks)

2. Create a projected future budget if a home is purchased based on your advice, include the first-time homeowners tax allowance in your calculations. (4 marks)