you guys are making sense... but I already knew that. I just moved out here in may and my girlfriend was already in an apartment (I AM happy with it actually). So I was stuck in a lease regardless (not my decision). I didnt have time to see the market out here for buying, etc. Ive been working with a realitor since Ive been out here because I have the ability to buy when Im ready on the right deal. This just seems like it. I can probably swing both because I did put a nice portion down on the car but I wanted to keep a good amount of cash in the bank as well. The blank check from capital one was the only way I could get some financing on a car older than 7 years old.
One things for sure, IF I sell the viper, Im pulling the HRE's off and putting the stockers on there and selling it for CHEEP so I can move it fast...
Im 23 and I live life like I will die tomorrow. Whether that means I have to finance my dream car, so be it. If I died tomorrow, I would not have ONE regret..... well, besides that one girl that one time, lol jk
No seriously though, I do have the ability to put all my stones in one basket and have my dream car and my dream house. If it means cutting back on going out to the bars and cutting back my alcohol consuption, so be it.
Im going to "see" the house with my realitor this saturday and I will take tons of pics. We are also going to start seeing what I can really get the house for (how much lower than asking price) to see if I can use some mortgage $ to pay the car off or just do a home equity loan to get the interest rate down on the car.
There has been a 75% increase in forclosure homes out here due to the fact that people bought a second or third home and now that the market sucks, they cant afford it so the nice "vacation homes" are selling for dirt cheep. The "vacation homes" are typically homes up in the mountains, hundreds of miles away from civilization where you bring your own water up in a truck and fill your tank, etc.
This house is right off the water and has all the things a house in town would have (heat, water, etc... funny but some dont)... and the best part is, I timed it yesterday and its only 9 minutes from the south end of downtown.... and I was driving my bronco, not the viper, lol
Its going to be a tough decision, Im going to try my best to swing both because I work my ASS off to get what I have at this age and I am really attached to my car because its my dream car and I have done 100% of the work on it myself (for the first time in any car and Ive had 11 since I turned 16).
We shall see what happens but I appreciate the comments, they sure put everything back into perspective.
Another side note because I have had a few pm's about retirement, etc... like I said Im only 23 but started my 401k and work retirement plan a few years back and every paycheck I MAX what they match so that is well on its way. That comes first for sure
its like I waited so long to find the PERFECT viper and finally got it, now I cant just turn around and sell it although I have done it with all the other cars Ive had, lol.
This one is a cut above... it already had HRE's, was lowered, tinted, etc, everything I would have done to it right off the bat that would have been about $10k to do myself.....
we will see what happens. If only my girlfriend was done with her medical sonography (sp) school and in the field making the money she will make next year... this wouldnt even be a discussion, lol.
I have been buying up ranch property here in Texas for the past 7 years, some days you might say I am LAND POOR, but as long as I did my homework, didn't pay some stupid price I feel it is a good investment.
As a very old and wise gentlemen told me when I was choking at buying my first batch at $600/acre, he said THEY AIN'T MAKIN NO MORE OF IT!!!
Do your homework and you will make the right decision.
Good luck
I've been wanting to do the same. What areas do you own in?
If only my girlfriend was done with her medical selenography (fixed it for you) school and in the field making the money she will make next year...
If things will be too tight, or you cant get a insane deal on the house, wait to buy a house when she is out of school next year. prices will have bottomed by then. just make sure to write a 50/50 contract if you are buying it together.
in the mean time stack the extra $ you would have spent on the mortgage in a savings account, a safe one would be ING Orange account, 5% interest, no minimums.
Refinance your car note ASAP with a Credit Union. Mine currently finances autos at 5.5% with 700+ credit. Can't beat that.
One thing to note; the interest on the house is tax deductible, if you pay off your car with the house note, the interest you would have paid to the lean holder is now refunded on your tax returns.
Everyone is talking about low interest rates. I rather have a higher interest rate, then buy something overpriced with low interest. The interest is a write off against the tax uncle sam is trying to collect. The negative equity in a overpriced house (with great interest rates!) will take a lifetime to recover from.
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Sell the car and get a house, the old saying there's alway's another woman or car out there better than the one you had before. By the way where are the house's at on the lake?
If things will be too tight, or you cant get a insane deal on the house, wait to buy a house when she is out of school next year. prices will have bottomed by then. just make sure to write a 50/50 contract if you are buying it together.
in the mean time stack the extra $ you would have spent on the mortgage in a savings account, a safe one would be ING Orange account, 5% interest, no minimums.
Refinance your car note ASAP with a Credit Union. Mine currently finances autos at 5.5% with 700+ credit. Can't beat that.
One thing to note; the interest on the house is tax deductible, if you pay off your car with the house note, the interest you would have paid to the lean holder is now refunded on your tax returns.
Everyone is talking about low interest rates. I rather have a higher interest rate, then buy something overpriced with low interest. The interest is a write off against the tax uncle sam is trying to collect. The negative equity in a overpriced house (with great interest rates!) will take a lifetime to recover from.
I agree with much of what you said until the ING savings part. There are much better money earning places to put your cash ,plenty safe, earning better yields. Him being 23 and having 35k in a savings account is just not logical.
you guys are making sense... but I already knew that. I just moved out here in may and my girlfriend was already in an apartment (I AM happy with it actually). So I was stuck in a lease regardless (not my decision). I didnt have time to see the market out here for buying, etc. Ive been working with a realitor since Ive been out here because I have the ability to buy when Im ready on the right deal. This just seems like it. I can probably swing both because I did put a nice portion down on the car but I wanted to keep a good amount of cash in the bank as well. The blank check from capital one was the only way I could get some financing on a car older than 7 years old.
One things for sure, IF I sell the viper, Im pulling the HRE's off and putting the stockers on there and selling it for CHEEP so I can move it fast...
Im 23 and I live life like I will die tomorrow. Whether that means I have to finance my dream car, so be it. If I died tomorrow, I would not have ONE regret..... well, besides that one girl that one time, lol jk
No seriously though, I do have the ability to put all my stones in one basket and have my dream car and my dream house. If it means cutting back on going out to the bars and cutting back my alcohol consuption, so be it.
Im going to "see" the house with my realitor this saturday and I will take tons of pics. We are also going to start seeing what I can really get the house for (how much lower than asking price) to see if I can use some mortgage $ to pay the car off or just do a home equity loan to get the interest rate down on the car.
There has been a 75% increase in forclosure homes out here due to the fact that people bought a second or third home and now that the market sucks, they cant afford it so the nice "vacation homes" are selling for dirt cheep. The "vacation homes" are typically homes up in the mountains, hundreds of miles away from civilization where you bring your own water up in a truck and fill your tank, etc.
This house is right off the water and has all the things a house in town would have (heat, water, etc... funny but some dont)... and the best part is, I timed it yesterday and its only 9 minutes from the south end of downtown.... and I was driving my bronco, not the viper, lol
Its going to be a tough decision, Im going to try my best to swing both because I work my ASS off to get what I have at this age and I am really attached to my car because its my dream car and I have done 100% of the work on it myself (for the first time in any car and Ive had 11 since I turned 16).
We shall see what happens but I appreciate the comments, they sure put everything back into perspective.
Another side note because I have had a few pm's about retirement, etc... like I said Im only 23 but started my 401k and work retirement plan a few years back and every paycheck I MAX what they match so that is well on its way. That comes first for sure
How many 23 year olds have a Viper? Not many - most of us were still playing around with Mustangs, Camaros, etc at that age. Appreciate the fact you have already have your dream car at that age!
With that said, sell it!
Buy the house, keep investing the max you can in your 401k, and don't stretch yourself too thin on your finances. I was in the same position you were when I was 25 and sold my vehicle to buy my house. Eight years later my house is 1/2 paid for (15 year note), 401k is great, and I own two vehicles outright (the Viper and lifted Dodge MegaCab daily driver). If your career is successful the car will come back sooner than you think! It is a sacrifice to make now, however it will pay off in the end.
To me it would seem buying something out right and making money on it wouldbe an investment...ex. stocks, bonds, gold, etc.
neither of them are investments, just one is a car and one is a house.
I just turned 30 and bought my first house in March. I told my wife I wanted to have enough money saved to buy the house cash. If we did not rent foras long as we did we would have never saved as much. When we closed on our house we paid $392K, I had $401K saved. We put money down and opted for a ten year mortgage. JMHO...plus I am a financial planne so I worked out all the numbers.
I was able to sav enough to buy my Viper in September!
Your house should be less than 5x your annual income
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Eric,
You can always live in a car but you can’t race a house. The house is way more practical though especially if you are getting a good deal on it. Just figure out the total you can comfortably afford right now without screwing yourself. See how the car fits in with the new house payment. If it doesn’t, sell it. Good luck on what ever route you choose.
I agree with much of what you said until the ING savings part. There are much better money earning places to put your cash ,plenty safe, earning better yields. Him being 23 and having 35k in a savings account is just not logical.
The house is way more practical though especially if you are getting a good deal on it. Just figure out the total you can comfortably afford right now without screwing yourself. See how the car fits in with the new house payment. If it doesn’t, sell it. Good luck on what ever route you choose.