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Well i know the logical answer to this but i just wanted to get some of your prospectives on this issue. Pretty much all you guys have homes and well paying jobs so i wanted to get your input i asked another crowd of guys similar to may age group and some own and some rent and got some pretty mixed reviews. so here it goes.<p>I am in Korea right now and i get back in a year. I reciently paid off all my debt and have been saving money. I will be returning back to Sacramento Cali when my tour is up. I have been renting and i hate it. I have all the qualifications to buy a house but i cant get past the asking prices for some of these condo's 280K for basic all the way to 340k. Ill have about 25k saved by the time i get back. Now i am a single guy and my girl makes about 1000 a month working( full time pre med student) she could pick up the slack but since i am in the military and you all know we dont get paid that much even an intrest only pmt would be at 30-40% of my take home monthy income and we all know that isnt smart. Freaking cali.<p>On the other hand i am looking for a new car somethign with AWD and i have been looking at the S60R. I can get a killer deal on it being over seas and getting a military discount( almost 7K off compaired to brand new in the states) but as we all know cars are a depreciating asset and some times looked down upon as a major purchase. So what do you guys think is a smarth thing to do.<p>I could just drive my prelude into the ground and save my money until i leave cali but that will not be for another 2-3 years. I am a big guy and that car just isnt doing it for me anymore and i need something with more room and that can get my ass to tahoe and back without being the back up snow plow on the road LOL.<p>any advice comments are greatly apprecaited!<p>Evan. <p>
 

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Re: R or Condo (Token Blk Guy)

I'd say be wary of buying overblown priced real estate, esp. in Cali these days. Perhaps, if you want to be a real speculative gambler; buy the R at the crazy deal you can get now and maybe later you'll find a crazier deal on a repo condo.<p>My .02 cents.
 

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I was in a similar boat when I was out of college. My focus was to buy a house - since like you said - renting sucks. But cars are fun! At the time I really wanted a Talon TSi AWD. My final decision was to buy a clean 2yr old Subaru XT6- and let the original owner take the major depreciation hit. Not having a car payment allowed me to then buy a house. Money was tight at first....but generally salaries increase each year, and the mortgage payments stayed the same. I had no problems putting all my money into my 1st house - heck, I got all my money back when I sold it and had a place to live for a few years. That was my story and it worked out pretty good for me.<BR><BR>
<i>Modified by BShirer at 8:32 AM 8-12-2006</i>
 

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Re: R or Condo (Token Blk Guy)

IMHO, don't do either. keep saving, so when you're out, you can just buy a house instead <IMG NAME="icon" SRC="http://www.vwvortex.com/vwbb/smile.gif" BORDER="0"><p>if the prelude isn't giving you any problems, then you'll be fine. Maybe mod it a bit if you absolutely need something faster. but save...save....save.<p>right now i'm working on my MBA, and i'm not making much either. The lease on my R expires in Jan '08, and the residual should be about 19k or so at that time. I'll have the opportunity to buy a used E60 M5 at that time as well [with the generous help of my parents on a good down payment so my payments wont kill me] but that's not the best thing to do financially. So right now i'm saving up, so when i graduate [doing it part time, so itll be about another 2 years], I can make a large down payment on my first house. I'm 21.<BR><BR>
<i>Modified by Cicada at 9:29 PM 8-12-2006</i>
 

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Re: (BShirer)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>BShirer</b> »</i></TD></TR><TR><TD CLASS="quote">I was in a similar boat when I was out of college. My focus was to buy a house - since like you - said renting sucks. But cars are fun! At the time I really wanted a Talon TSi AWD. My final decision was to buy a clean 2yr old Subaru XT6- and let the original owner take the major depreciation hit. Not having a car payment allowed me to then buy a house. Money was tight at first....but generally salaries increase each year, and the mortgage payments stayed the same. I had no problems putting all my money into my 1st house - heck, I got all my money back when I sold it and had a place to live for a few years. That was my story and it worked out pretty good for me.</TD></TR></TABLE>he could try to flip a house as well -- i have a few friends interested in doing this, but i tell them they really need to be careful. Sure, you might sell it for a good amount more than you bought it, but when you consider all the fixing you're gonna do...the mortgage you pay while you're fixing...and the time...you'll be lucky if you break even, or the profit may not be worth the work.
 

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Re: (Cicada)

Absolutely no doubt regarding the answer: Real Estate. A car is not an asset, it is a depreciating liability. Real estate is an asset, which WILL appreciate (you may have to wait a while though) and the interest on the payments is tax deductible. <p>Also, renting is wasting money. It's money you'll NEVER get back. <p>If you live in a really hot market, buy a POS and fix it up. You are much less likely to get burned. <p>I know it's tempting to get a car, but Real Estate is a far better move. <IMG NAME="icon" SRC="http://********************/smile/emthup.gif" BORDER="0">
 

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Re: (Cicada)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>Cicada</b> »</i></TD></TR><TR><TD CLASS="quote">he could try to flip a house as well -- i have a few friends interested in doing this, but i tell them they really need to be careful. Sure, you might sell it for a good amount more than you bought it, but when you consider all the fixing you're gonna do...the mortgage you pay while you're fixing...and the time...you'll be lucky if you break even, or the profit may not be worth the work.</TD></TR></TABLE><p>My point wasn't necessarily to flip the house, but simply save your $'s, buy a decent used R AND the house. More of a way of figuring out how he can get both - compromise on the car for awhile, avoid a big car payment so you can afford the house. Once he is more establish he can get a new car in a few years.
 

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Re: (needsdecaf)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>needsdecaf</b> »</i></TD></TR><TR><TD CLASS="quote">Absolutely no doubt regarding the answer: Real Estate. A car is not an asset, it is a depreciating liability. Real estate is an asset, which WILL appreciate (you may have to wait a while though) and the interest on the payments is tax deductible.</TD></TR></TABLE><p>I completely agree and while this isn't your only option...it's the correct option. I understand you want a nice R but the smart choice is buying a home. This isn't a great example but our home has appreciated $20k in the past two years (and we're in Ohio - I imagine CA would be much more) and according to the dealer website's blackbook, my S40 has lost $7k in value in just 15 months. Not a great example but but it illustrates my point. Another key advantage is that owning a home lowers your income taxes as you can write off interest and property tax. <p>We bought our starter home around age 29 or so and in 2000 and in 2004 we were able to sell and upgrade into a home 2.5x the price. We were in a nice but inexpensive suburb and made a $30k in profit which all went into the new home. We were also able to buy a Honda Odyssey in 2002. So you can have the best of both worlds but maybe not right now.<p>Good luck.
 

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Re: (needsdecaf)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>needsdecaf</b> »</i></TD></TR><TR><TD CLASS="quote">Absolutely no doubt regarding the answer: Real Estate. A car is not an asset, it is a depreciating liability. Real estate is an asset, which WILL appreciate (you may have to wait a while though) and the interest on the payments is tax deductible. <p>Also, renting is wasting money. It's money you'll NEVER get back. <p>If you live in a really hot market, buy a POS and fix it up. You are much less likely to get burned. <p>I know it's tempting to get a car, but Real Estate is a far better move. <IMG NAME="icon" SRC="http://********************/smile/emthup.gif" BORDER="0"> </TD></TR></TABLE><p>I also agree with this--money first ought to go to a house. Now maybe if you save enough you could also buy a newer car too, but like others have said, let somebody else take the depreciation hit on an R--it is a great value after the first couple years. <p>Confession time: when I was about your age and in the service, I did not follow the advice above--bought a quasi-nice brand new car ('86 GTI) instead of putting money away for a more sensible purpose. Took me until my mid 30's to get into a house. Now part of that was going back to school (a LOT of school), but still, I could have done better.
 

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Re: R or Condo (Cicada)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>Cicada</b> »</i></TD></TR><TR><TD CLASS="quote">I'll have the opportunity to buy a used E90 M5 at that time as well [with the generous help of my parents on a good down payment so my payments wont kill me] but that's not the best thing to do financially.</TD></TR></TABLE><p>I didn't know that the new 3 series sedan had an M5 variant. <IMG NAME="icon" SRC="http://www.vwvortex.com/vwbb/confused.gif" BORDER="0">
 

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Re: R or Condo (Token Blk Guy)

R is a $40K depreciating asset, a condo is $300K depreciating asset (at least in today's CA Real Estate market). Your choice.<p>Be very careful right now with Real Estate in CA. Look at these inventory-sales numbers from Sacramento:<p>In January, 2005 there were 3597 listings, today <B>17,442</B>.<p>It is the same in almost every CA city. San Diego prices are starting to go down. From today's news paper:<p><A HREF="http://www.signonsandiego.com/news/business/20060812-9999-1b12housing.html" TARGET="_blank">http://www.signonsandiego.com/....html</A> <p>From:<p><A HREF="http://bubbletracking.blogspot.com" TARGET="_blank">http://bubbletracking.blogspot.com</A>/<p>Tracking Sacramento Metro <p>Including Sacramento/El Dorado/Placer/Yolo Counties<p>Population 2005: 2.06 million<br>Listing to population ratio 1/2005 1:573<br>Listing to population ratio 11/2005 1:172<p>01/05: 3,597 (1,873)<br>02/05: 3,554 (1,919)<br>03/05: 3,793 (2,965)<br>04/05: 4,423 (2,925)<br>05/05: 5,284 (2,967)<br>06/05: 6,241 (3,267)<br>07/05: 7,263 (2,969)<br>08/05: 8,966 (3,098)____08/04: (3,235)<br>09/05: 10,177 (2,367)___09/04: (3,069)<br>10/05: 10,799 (2,161)___10/04: (2,763)<br>11/05: 11,632 (1,937)___11/04: (2,210)<br>12/05: 10,079 (1,852)___12/04: (2,752)<p>Population 2006: 2.07 million<br>Listing per population ratio 1/2 1:217<br>Listing per population ratio 4/30 1:159<br>Listing per population ratio 7/30 1:119<p>1/30: 10,582 (1,309)___1/05: (1,873)<br>2/28: 11,215 (1,338)___2/05: (1,919)<br>3/31: 11,833 (2,060)___3/05: (2,965)<br>4/30: 12,989 (1,739)___4/05: (2,925)<br>5/31: 14,824 (2,439)___5/05: (2,967)<br>6/30: 16,505<br>7/10: 16,650<br>7/20: 17,101<br>7/31: 17,314 <br>8/10: 17,422<br>
 

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Re: (needsdecaf)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>needsdecaf</b> »</i></TD></TR><TR><TD CLASS="quote">Absolutely no doubt regarding the answer: Real Estate. A car is not an asset, it is a depreciating liability. Real estate is an asset, which WILL appreciate (you may have to wait a while though) and the interest on the payments is tax deductible. <p>Also, renting is wasting money. It's money you'll NEVER get back. <p>If you live in a really hot market, buy a POS and fix it up. You are much less likely to get burned. <p>I know it's tempting to get a car, but Real Estate is a far better move. <IMG NAME="icon" SRC="http://********************/smile/emthup.gif" BORDER="0"> </TD></TR></TABLE><p>No question.
 

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Re: R or Condo (BrunoS)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>BrunoS</b> »</i></TD></TR><TR><TD CLASS="quote">In January, 2005 there were 3597 listings, today <B>17,442</B>.<p>It is the same in almost every CA city. San Diego prices are starting to go down.</TD></TR></TABLE><p>I'm not a real estate agent but I think that means it's a buyer's market. Buy a good home at an "affordable" price as there is a lot to choose from. History dictates that home values go up and if you can buy when they happen to be down you're going to do well. Maybe you won't make 200-300% profit when you sell but over time you will not lose money.
 

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Don't do either. An R is a car for someone who already has a fairly established financial situation. I would not have bought an R unless I already owned a house, I also only financed it for six months until I got sick of the inerest.<p>Don't buy an R, especially a new R.<p>Also, Sacramento is one of the worst real estate markets in the country. The cost of housing far exceeds the average income in the Sacramento area. Condos will be the worse hit when the market here corrects.<p>My advice is keep saving as much as you can, I know first hand your money will go a lot farther outside of California.
 

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Re: (needsdecaf)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>needsdecaf</b> »</i></TD></TR><TR><TD CLASS="quote">Absolutely no doubt regarding the answer: Real Estate. A car is not an asset, it is a depreciating liability. Real estate is an asset, which WILL appreciate (you may have to wait a while though) and the interest on the payments is tax deductible. <br> </TD></TR></TABLE><p>Agreed. With an asset like real estate, you're less likely to lose any money where with a car, it's guaranteed to lose.
 

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Re: R or Condo (Token Blk Guy)

Actually it depends on things people are not bringing up...<p>Are you career military? if so making a home purchase might not make us much sense in a market that is yo-yo'ing as much as California is and the need to sell quickly when being re-assigned.<p>Also buying a place and becoming "house poor" just so that you can own a place is not the best advice either. If you're planning on leaving the military soon and starting over in the civilian world I would tell you to save all your money and see where you are in a couple of years.<p>Let me tell you, I never followed any of the advice I just told you! I bought cars in the military, college and before we bought our first home. I love cars and after my brother died I decided I would not have any regrets about anything I bought or did ( within reason) and it has turned out ok. One must have a view of money that there is plenty out there to be had and it is meant to be enjoyed! <p>Good luck with whatever you choose to do!<p>Besides it looks like you can bank on a two things, student loan debt and a Dr's salary in 9 years!
 

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Re: (needsdecaf)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>needsdecaf</b> »</i></TD></TR><TR><TD CLASS="quote">A car is not an asset, it is a depreciating liability. Real estate is an asset, which WILL appreciate (you may have to wait a while though) and the interest on the payments is tax deductible. </TD></TR></TABLE><p>There is technically no such thing as a depreciating liability. A car is an asset. Yes, it will lose value and you will put money into it for repairs but that's the price of transportation.<p>However, real estate is not a guarantee either. You are less apt to lose money on it but you will put money into it for upkeep. How quickly we forget the "dot com" boom of the late 90's when everyone was a day trader because even the uneducated could make easy money.
 

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Re: (needsdecaf)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>needsdecaf</b> »</i></TD></TR><TR><TD CLASS="quote">Absolutely no doubt regarding the answer: Real Estate. A car is not an asset, it is a depreciating liability. Real estate is an asset, which WILL appreciate (you may have to wait a while though) and the interest on the payments is tax deductible. <br>Also, renting is wasting money. It's money you'll NEVER get back.<br>If you live in a really hot market, buy a POS and fix it up. You are much less likely to get burned. <br>I know it's tempting to get a car, but Real Estate is a far better move. <IMG NAME="icon" SRC="http://********************/smile/emthup.gif" BORDER="0"> </TD></TR></TABLE><p>What he said but, CA property was on a tear for the last 8 years. Things have leveled out and actually stated to depreciate from the highs made in 2005. Condos and high end homes are usually the 1st hit in this cycle, so be patient. If you can own the home for 10 yrs (yes, rent it out at some point) then buying today will be ok in the long run, but if you are thinking of selling in the next few years, wait and see if prices continue to slide and save your money. Forget the R until you have your investments together.<br>My 2 cents.<br>Jim
 
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