What would you do?
11-11-2001, 08:33 PM
#1
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What would you do?
I'm 21, I make $70K, I currently drive a 2000 Eclipse, and I have my own apartment with 7 months left on the lease.
I want to purchase the 2002 CL-S, however, everyone I know thinks I should buy a home instead. Personally, I feel that I'm not completely ready for that type of responsibility, but it would be nice have a right-off. So, should I buy a new car that has better quality, features, power, resale value, etc... than a Mitsubishi or buy a new home and wait another few years to buy a car?
What would you do in my shoes?
I want to purchase the 2002 CL-S, however, everyone I know thinks I should buy a home instead. Personally, I feel that I'm not completely ready for that type of responsibility, but it would be nice have a right-off. So, should I buy a new car that has better quality, features, power, resale value, etc... than a Mitsubishi or buy a new home and wait another few years to buy a car?
What would you do in my shoes?
11-11-2001, 08:37 PM
#2
Someday pigs WILL fly!
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Buy the house. AT least three years down the road, you will have a place to keep your new wheels! At the end of three years, your car will be worth half and a house may have doubled in value. A car will give you no write off. Buy the house, wait a year or two, take out a second on the house, buy a car and then you have a write off. 
JMO
JMO
11-11-2001, 08:42 PM
#3
Suzuka Master
Dang. Congrats on being 21 & making 70K (same as me and I am 45).
What price range are you talking as far as real estate. You really should be owning and not renting to begin with. If you buy into a nice condo, let's say $150,000 you should be able to buy a condo first, then get the car after. It helps to have as little debt as possible when you buy.
Never rent if you can afford to buy. Especially with the low rates now...
What price range are you talking as far as real estate. You really should be owning and not renting to begin with. If you buy into a nice condo, let's say $150,000 you should be able to buy a condo first, then get the car after. It helps to have as little debt as possible when you buy.
Never rent if you can afford to buy. Especially with the low rates now...
11-11-2001, 08:53 PM
#4
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I think if I'm going to buy a home it has to at least be a town home so I have a garage. Thanks for the advice.
BTW - I work in the computer field as a Systems Engineer. I'm the Network/Systems guy that is responsible for 20 servers and 150 users. Trust me, it's not all it's cracked up to be but the money is good. Microsoft and their bullsh$@...
BTW - I work in the computer field as a Systems Engineer. I'm the Network/Systems guy that is responsible for 20 servers and 150 users. Trust me, it's not all it's cracked up to be but the money is good. Microsoft and their bullsh$@...
11-11-2001, 09:09 PM
#5
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HOUSE!! HOUSE!! HOUSE!!
This probably isn't what you want to hear right now, but I have to agree with the other guys.
Buy a house!
Right now Interest rates are so freekin low you can get sooooooooo much more for the same monthly payment than you could a year ago...or you will be able to get a few years from now. If you think the ladies (and the parents of those ladies) cream when they see you have a phat ride, just wait until they see that you own a home.
Definitely buy a house/condo and with a little luck, within a few years, your property will have gone up in value more than the price of a new CL-S ...effectively making your new car free! PLUS when you do get your new car, you can do so by taking out a loan against the equity (what you've paid off already) in your house. You can write off your payments to the home equity loan on your taxes...effectively making the car even cheaper in the long run. Maybe you could afford an almost new M5 or an S4 in a few years if your house goes up in value enough...
Talk to your friends, talk to other home owners. Buying a house for the first time is a BIG learning experience. You have to do a lot of research, or have good friend who is a good realtor. It makes a lot of financial sense in the long run though.
Any new car, however nice, will never go up in value.
Buy a house!
Right now Interest rates are so freekin low you can get sooooooooo much more for the same monthly payment than you could a year ago...or you will be able to get a few years from now. If you think the ladies (and the parents of those ladies) cream when they see you have a phat ride, just wait until they see that you own a home.
Definitely buy a house/condo and with a little luck, within a few years, your property will have gone up in value more than the price of a new CL-S ...effectively making your new car free! PLUS when you do get your new car, you can do so by taking out a loan against the equity (what you've paid off already) in your house. You can write off your payments to the home equity loan on your taxes...effectively making the car even cheaper in the long run. Maybe you could afford an almost new M5 or an S4 in a few years if your house goes up in value enough...
Talk to your friends, talk to other home owners. Buying a house for the first time is a BIG learning experience. You have to do a lot of research, or have good friend who is a good realtor. It makes a lot of financial sense in the long run though.
Any new car, however nice, will never go up in value.
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11-11-2001, 10:27 PM
#8
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YES!!! That's what I'm talking about. I just recently started my financial portfolio with my advisor and in a couple of years I will be able to buy a $200k single family home instead of a town home and I will have a CL-S to park in my drive way.
Thanks. Live it up!!!:P
Thanks. Live it up!!!:P
11-12-2001, 06:53 PM
#11
Just call me DADDY!!!
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Why not both? A townhouse and a car. But, if you had to chose one, I have to go with the house. The rates are low and you can always make money of the house, as in leasing or renting it and/or property value of your place increase.
11-12-2001, 07:07 PM
#12
Re: Anyone know how fast the s2000 with a supercharger is?
Originally posted by hatemystocks
Was thinking about it as a Z06 alternative but Im not sure how fast it is....
Anyone know?
Was thinking about it as a Z06 alternative but Im not sure how fast it is....
Anyone know?
It depends on if you want raw muscle and power or a little scooter with some balls. I'd rather have something with more room and practicality than either of those cars, but if it's a second car or something, I'd probably go with the Z06.
11-12-2001, 09:01 PM
#13
Suzuka Master
ntguru77:
Let's crunch some numbers. With a $150K townhome, you can go FHA which requires 3% minimum down payment. These numbers are going to be rough estimates ( I am a Real Estate Appraiser and not a loan processor).
Figure a loan rate of 7% (may be slightly high)..
$150K 7% with a 30 year loan:
5% ($7,500 down payment) makes your payment $950
10% ($15,000 dp) makes your payment $898
There will be additional closing costs and you will have to add Home Owners dues & property taxes. But bear in mind that you really need tax shelters and owning will help shelter some of that.
Man! Like I said, we make the same and I am sweating it since Uncle Sam is going to make me bend over and give it to me good next year. This year, my wife who is separated from me and makes nothing is willing to file jointly so I can save on taxes. We are on very good terms.
Any other questions, just contact me direct. Sorry for the long post but this is kinda right up my alley. Don't don't buy the car first.
My position today: my house is $180K & I have $40K equity. I Own my CL-S, my 98 Harley FatBoy with 4K miles, a classic 75 Honda 400F, stocks and a sh*t load of $$$$$ in my 401K.
Let's crunch some numbers. With a $150K townhome, you can go FHA which requires 3% minimum down payment. These numbers are going to be rough estimates ( I am a Real Estate Appraiser and not a loan processor).
Figure a loan rate of 7% (may be slightly high)..
$150K 7% with a 30 year loan:
5% ($7,500 down payment) makes your payment $950
10% ($15,000 dp) makes your payment $898
There will be additional closing costs and you will have to add Home Owners dues & property taxes. But bear in mind that you really need tax shelters and owning will help shelter some of that.
Man! Like I said, we make the same and I am sweating it since Uncle Sam is going to make me bend over and give it to me good next year. This year, my wife who is separated from me and makes nothing is willing to file jointly so I can save on taxes. We are on very good terms.
Any other questions, just contact me direct. Sorry for the long post but this is kinda right up my alley. Don't don't buy the car first.
My position today: my house is $180K & I have $40K equity. I Own my CL-S, my 98 Harley FatBoy with 4K miles, a classic 75 Honda 400F, stocks and a sh*t load of $$$$$ in my 401K.
11-12-2001, 09:29 PM
#14
In Da LBC with Snoop Dogg
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YO, I'm with Eggplant!
Congrats on making it at the age of 21. Success at an early age brings greater responsibility and future successes in your life. I'm in the early 30's and make $80K
Now, onto business.
Get the damn house.
Biggest tax break a young man like you can get unless you sell your soul and get married and have kids. 401K can only help your for upto $10.5K and outside sources can't do much after that.
You will have ample opportunity to get your CL-S in another year or two, granted the rates may not be as wonderful as they are right now, but you know as well as I know that property values here in DC and especially in Columbia where you are are rising on average of 12 - 22% depending on which development you stroll into. That alone says house. Cars depreciate by the minute, your house will appreciate by the second, weak economy or not.
Now, sit on your present load, fix her up, baby her for another 24-36 months, then grab the sweetest set of wheels your salary ( which should be somewhere in the $85K range ) can bring to you. God smiled on you, smile back and get your crib, you already have a car.
Now, onto business.
Get the damn house.
Biggest tax break a young man like you can get unless you sell your soul and get married and have kids. 401K can only help your for upto $10.5K and outside sources can't do much after that.
You will have ample opportunity to get your CL-S in another year or two, granted the rates may not be as wonderful as they are right now, but you know as well as I know that property values here in DC and especially in Columbia where you are are rising on average of 12 - 22% depending on which development you stroll into. That alone says house. Cars depreciate by the minute, your house will appreciate by the second, weak economy or not.
Now, sit on your present load, fix her up, baby her for another 24-36 months, then grab the sweetest set of wheels your salary ( which should be somewhere in the $85K range ) can bring to you. God smiled on you, smile back and get your crib, you already have a car.