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Buy house or nsx first?

NSXFRIEND

NSXFRIEND

Experienced Member
Joined
26 September 2005
Messages
1,461
Location
MD
Hi team,

I am at a point in life where i have to decide wether to purchase my home first or nsx. My credit is pretty good and i have been adviced not to buy a car and pull a loan on prior to purchasing a home. However the houses in maryland are not banging to say the least under 600k, this area is way over priced compared to where i used to live Seattle. I want to buy a home with the intention of selling it after two years after it appreciates. Given the market this may not happen for another 5-10 years as the cycle goes also this area has already gone up so much that there is not much more room left


I don't really need a home but the idea is nice. Should i buy an NSX and put a fat downpayment and burrow say only $10-12k or just wait to see if i can find the right home?

Thanks in advanced.
 
I lived in VA...and prices there wen't as high, but if people keep paying stupid prices....

Anyway, I moved to Texas, where you can buy a mansion for the price of what you are looking into, which is probably not all that great, given the price.

I'd just move to a more economically friendly state, and buy both.

JM
 
BUY THE HOUSE FIRST, you'll never be sorry and you can't live in an NSX :biggrin: Also the house will go up in value, the NSX won't.
 
Hi all,

Thanks for the responses. I am currently on a month to month lease agreement and in no hurry to buy but based on the market in dc metro area its to expensive to buy so i dont mind financing nsx and paying it off complete within the first year or year and half

The other option is to buy the house and put little down and still have enough to buy the nsx with more than half down. :)

The roads here are awful as is the bitter cold and people parking close and careless.
 
Unless the market is the way it is in Sacramento, CA (along with many markets close by), I'd say real estate first. Currently the market in NorCal has been dropping significantly (some areas reaching 20%).
 
How much do you pay in rent? $1000/month. Thats $12,000 a year you're throwing away. Plus the tax break of a house you're losing out on.

The only real question is whether or not house values will drop in the next 2 years. I dont know the answer to that.

I am willing to bet interest rates will go up though...
 
Given that you are viewing the house as an investment rather than somewhere to live out your days:

The house can pay for the NSX, but the NSX can't pay for the house.

Property values will rise sooner or later, and if you sell at that time, then you'll have your NSX for free. If you decide not to sell, then in a few years either rising housing prices or the portion of your mortgage that you have paid off should allow you to use the house to finance the NSX at a low rate.

ie. What coolnsx and KoolAid said!

Disclaimer: There is not right or wrong answer - that's why these threads go on and on. Do what's right for you and don't assume that you will live to old age in good health. I bought both. My mortgage will take longer to pay off as a result - that is the trade-off I made, but it's one I can get out of in the short-medium term by selling the car should I ever regret it making that choice.
 
jond said:
How much do you pay in rent? $1000/month. Thats $12,000 a year you're throwing away. Plus the tax break of a house you're losing out on.
Click to expand...

What do you mean he's throwing $12 g's away? He's paying for a resource which he is consuming. Buying is not always a better option depending upon a whole lot of factors including the price of a comparable domicile, interest rates, tax bracket, etc.

To the original poster: Don't buy your primary residence expecting to flip it for a profit in 2 years. In any housing market that is not a given, but it is especially true for this housing market. Look around a lot and when you see the right place at the right place (if you look enough you will know), buy it and expect to hold it for a while. Although the high leverage typical for real estate works in your favor (ROI wise), the high transaction costs are a big offsetting factor to making a quick profit.
 
LIQUID is absolutely correct.


Your decision is not House vs. NSX... your decision is House vs. NSX vs. Nothing (or invest excess cash elsewhere). You don't HAVE to buy anything, do you? :rolleyes:

Right now, 99% of the public still thinks a buying (vs renting) your home is the best long term investment you can make. Look at the responses in this thread. This housing bubble won't have bottomed for YEARS, at which point those same 99% will think buying (vs renting) is a terrible investment that constrains mobility (when loan underwater) and that is no longer a source of pride (because even 19 year olds are homeowners now).
 
The only tax deduction available without owning a business is mortgage interest and property taxes.

Buy a house and get some roommates to help pay for it, then take out a Home Equity loan and buy an NSX...that way you have a garage to keep it in.
Then you get the most tax write-off!
 
Big_D said:
The only tax deduction available without owning a business is mortgage interest and property taxes.

Buy a house and get some roommates to help pay for it, then take out a Home Equity loan and buy an NSX...that way you have a garage to keep it in.
Then you get the most tax write-off!
Click to expand...

Amen!
 
coolnsx said:
BUY THE HOUSE FIRST, you'll never be sorry and you can't live in an NSX :biggrin: Also the house will go up in value, the NSX won't.
Click to expand...

Well you can't take high speeds turns in a house or pick up hotties at the club in a house either.:biggrin: :biggrin: :wink:

I don't understand how you expect us to give you financial advise when we don't know your financial situation - loans?, married?, kids?, school debt?, business debt?, IRAs?, Investments? Credit card debt? etc etc.

just my 2 cents.
 
Last edited:
Liquid said:
What do you mean he's throwing $12 g's away? He's paying for a resource which he is consuming.
Click to expand...

It's not so obvious when looked at on a timescale of 12 months.
I have a friend who is in his 40's and has rented for the last 25 years. He could have a house PAID OFF by now....

You're right though, it depends. If you're truly thinking about selling in 2 years, closing costs alone will probably eat you up.
 
What i see here is that 99% of the NSX owners first get a good income. Then buy a nice house, and then, when they are settled, save some money, and buy a NSX cash. No loan. No risk.
 
jond said:
It's not so obvious when looked at on a timescale of 12 months.
I have a friend who is in his 40's and has rented for the last 25 years. He could have a house PAID OFF by now....

You're right though, it depends. If you're truly thinking about selling in 2 years, closing costs alone will probably eat you up.
Click to expand...

Well if he was renting a gorgeous house for 1/2 of what it would cost him after tax to own it, your friend may be a genius. That is assuming he didn't piss away the extra $1000 a month (or whatever) and invested it. The problem is most people spend anything they can get their hands on.


Big_D said:
The only tax deduction available without owning a business is mortgage interest and property taxes.

Buy a house and get some roommates to help pay for it, then take out a Home Equity loan and buy an NSX...that way you have a garage to keep it in.
Then you get the most tax write-off!
Click to expand...

You're only getting some of the money you paid in interest back. It may well be a better financial situation to have no tax write off and no interest expense.


All of that said, I don't mean to suggest that buying an expensive sports car ahead of a house is the smart thing to do. In fact, the opposite is usually true.
 
Real estate market in DC metro area sucks big time. I do not see the market gaining much for the this year and next year. However, it is definitely a buyer's market as the market is overflowing with houses and condos and people are giving a lot of incentives(especially condos) but even after all the incentives, the prices are pretty damn ridiculous. Honestly, with the market the way it is, I am not going to jump on the wagon and tell you you MUST buy a property. If it was 2-3 years ago, or even last year, it would have been a different story.

But anyway, personally, I don't see anything wrong with buying NSX then buying a house. That's what I did. As long as you are on top of your finances and where you want to go in the future(career, finances whatever), then you should be okay.

Weigh out your options. Do you see yourself staying in DC area for a long haul? Do you see your salary or income increasing in that time frame? etc etc.
 
NSXLuvr said:
Well you can't take high speeds turns in a house or pick up hotties at the club in a house either.:biggrin: :biggrin: :wink:

But if don't have a house you can't spend the night together in your car :biggrin: :biggrin:
Click to expand...
 

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