1. Assuming that his declared earnings will increase by 10 per cent each year for the next five years and all expense factors remain in the same proportion, Mr. Aldred should be able to purchase an apartment in Kingston for say $2.7 million with mortgage financing of $2.3 million from VMBS and the National Housing Trust. To acquire a bigger unit he may have to consider buying a house in Portmore and postpone owning the Kingston house for later.

2. What he really needs to do is to find a way to increase his income while keeping expenses under control. This might be by finding additional or new employment and/or starting a business venture to increase his income sources.

3. Mr. Aldred's student loan payments will cease in August 2005, this additional savings should be used to build his investment portfolio to ensure that he has sufficient capital to finance the purchase and cover closing costs (e.g. transfer costs, mortgage costs & lender pre-payables).

4. He needs to open an account with VMBS and save 10 per cent of the loan required to ensure that when he is ready to buy that the best rate is obtained and reduced fees and he should also be a contributor to the NHT.

5. He also needs to maximise on his investments/savings to ensure the best return on his money. This can be done by placing a portion of his portfolio on the Stock Exchange or unit trusts and speaking to an investment adviser.

6. To ensure that he saves and keeps his expenses under control, it is important that he documents his plan stating his goals and the time frame to achieve them; a budget should also be done and revised periodically.

7. The option of buying land now, with the intention of gaining capital appreciation to be used towards a future home purchase should not be discounted, but be part of the mix for consideration.

8. The proposed purchase of a car should be postponed until after the house is acquired, as after a year, the equity built up in the home can be used as collateral to finance this purchase at a better rate and over a longer period (up to 25 years) making the payments more affordable.

I would encourage your reader to not be discouraged, but keep a clear focus on what he hopes to achieve and continue to 'press-on.'

Gavin Lowe, assistant vice-president of operations at Victoria Mutual Building Society

First I must say that Mr. Aldred has done a wonderful job saving $90,000 over a three-year period. He must be doing something good. However, with the goal of purchasing a house in five years, he will have to alter his present spending. The main changes are as follows:

1. Rent

The $12,500 spent each month needs to be reduced to increase his savings. This may mean going to live at home with his parents or getting married to the mother of his child, as two will be able to save more.

2. Student Loan

The $6,000 must be put in an interest-bearing account each month after August 2005. This will end up at $288,000 plus interest at the end of five years.

3. JMMB

Funds would be better served in National Commercial Bank's Omni Policy since Mr. Aldred needs rapid growth.

4. Hire Purchase

Mr. Aldred is not to take out another facility after the present account is paid off.

5. Location of Property

Mr. Aldred needs to look out of the Kingston area for the house that he wants. At present market rate he will be hard-pressed to find something located in Kingston that he can service in five years.

6. Mr. Aldred could look at the option of purchasing land from say the National Housing Development Corporation and constructing a house. FirstCaribbean International Building Society will lend up to 95 per cent of the purchase price or forced sale value.

7. Postpone car purchase

Mr. Aldred's present salary will not be able to carry a mortgage and a car loan. If he badly needs a car try to get a job that gives a company car that is fully maintained.