house first and then you will have more options with cars later. trust me the waiting time is not that long 
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Buy house or nsx first?
- Thread starter NSXFRIEND
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Normally I would side on the House first, then NSX but in Maryland and the state of the current housing market, its not such as obvious decision anymore.
If you buy a home now, your probably going to lose money for the first two or more years. I've been looking for the past 4 months and prices have dropped $50k+ since then and the homes are still on the market. Some have dropped $100k+.
Go to ziprealty.com. They track all previous home prices and how much they have fallen since it was up on the market.
If you buy a home now, your probably going to lose money for the first two or more years. I've been looking for the past 4 months and prices have dropped $50k+ since then and the homes are still on the market. Some have dropped $100k+.
Go to ziprealty.com. They track all previous home prices and how much they have fallen since it was up on the market.
omeganorm said:
In current market situations, I beg to differ.
If he decides to keep the house for more than 5 years, then it would most likely be a good investment, but he already stated it was an investment purpose where he would sell after 2 years. After 2 years, the way the market has been for 2006, the best thing to hope for when selling the house would be to sell it for just enough to come out even after the demanding 6% commissions and closing costs, which is not very unlikely, again because of the current market.
Buy the cheapest house or apartment that you can afford and try to pay it off as soon as possible. Interest is tax deductible, but I much rather prefer to be debt free.
When you are in a better financial situation and ready to have a family, you can always move up to something better and carry the equity over to the new house.
This is really just Finance 101. Homes aren't cheap; especially property taxes, home association fees, and maintenance costs to keep it in tip top condition for it to appreciate.
I never desired huge homes. I am happy living in my house in Denver that is worth just 250,000 and renting out the other extra three rooms I have. The rent covers the payments, but I do have to pay the property taxes out of my own pocket. Houses are cheap here and not ridiculously priced like in CA.
The average personal debt in the U.S. is extremely high in comparison to other regions such as in Asia.
It is always better to save more and spend less. Be happy with what you can afford. By being in the United States alone, you are already much better off than most people around the world. Don't spend your entire life working for materialistic things that you don't really need that will never make you truly happy.
Money is an essential part of life as is hard work, but I wouldn't make it my ultimate goal in life.
When you are in a better financial situation and ready to have a family, you can always move up to something better and carry the equity over to the new house.
This is really just Finance 101. Homes aren't cheap; especially property taxes, home association fees, and maintenance costs to keep it in tip top condition for it to appreciate.
I never desired huge homes. I am happy living in my house in Denver that is worth just 250,000 and renting out the other extra three rooms I have. The rent covers the payments, but I do have to pay the property taxes out of my own pocket. Houses are cheap here and not ridiculously priced like in CA.
The average personal debt in the U.S. is extremely high in comparison to other regions such as in Asia.
It is always better to save more and spend less. Be happy with what you can afford. By being in the United States alone, you are already much better off than most people around the world. Don't spend your entire life working for materialistic things that you don't really need that will never make you truly happy.
Money is an essential part of life as is hard work, but I wouldn't make it my ultimate goal in life.
I'm 28, and my worst financial decision was in 2003, when I had saved a downpayment, and had a home I was very close to putting an offer on. To make a long story short, I decided I was only young once, and completely reversed my course of action, and bought a highly modified 2002 Subaru WRX instead.
Needless to say, the WRX depreciated, while houses appreciated substantially. I did not become a homeowner until May 2005, and missed out on a good $75-100k in equity on the home. Anytime I think about it, I regret choosing instant gratification. The current housing market is a bit more tenuous, but chances are it's still in your better interest to find a home first, especially if you're patient and careful in your search.
Also, if you're financing the NSX, having a monthly payment will lessen your buying power when you seek a mortgage.
Needless to say, the WRX depreciated, while houses appreciated substantially. I did not become a homeowner until May 2005, and missed out on a good $75-100k in equity on the home. Anytime I think about it, I regret choosing instant gratification. The current housing market is a bit more tenuous, but chances are it's still in your better interest to find a home first, especially if you're patient and careful in your search.
Also, if you're financing the NSX, having a monthly payment will lessen your buying power when you seek a mortgage.
Wow thanks for all the good advice. I am not 29 years old. Here is where i stand after reading all the responses. BTW my rent and bills come to about 12-1300 and i live in inner harbor not the nicest place but better than the choice available here. Again if the market is going to be bad for next say 2-3 years in DC metro then there really is no point in buying a home unless i purchase it and rent it out and buy another property later down the line. Yes if i wait 5-6 months i can buy a clean nsx cash out right but i recently got a new job and 20% bump in salary so I am fortunate enough to have the buying power and the only debt i have is $104 student loan payment a month.
Pros of buying house.
1. Interest tax break
2. Equity if it appreciates (Seattle, San Bernindino, Diego, hawaii best market)
3. safe garage
4. Pleasure of owning a home
Cons of buying house.
1. Bubble burst depreciating market
2. 3-5 years before appreciation (maryland,dc, virginia)
3. Can't pull equity loan if property stays stagnent.
4. Could lose money if i sell in 2 years
I know the best advice is to buy a house but given there area where i am residing it almost makes sense to buy an nsx 91-93 around?
Pros of buying house.
1. Interest tax break
2. Equity if it appreciates (Seattle, San Bernindino, Diego, hawaii best market)
3. safe garage
4. Pleasure of owning a home
Cons of buying house.
1. Bubble burst depreciating market
2. 3-5 years before appreciation (maryland,dc, virginia)
3. Can't pull equity loan if property stays stagnent.
4. Could lose money if i sell in 2 years
I know the best advice is to buy a house but given there area where i am residing it almost makes sense to buy an nsx 91-93 around?
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im in the DC area and would still look into BUYING in this market, but as someone mentioned above, the renting vs buying debate depends on a variety of factors (age, priorities, income, debt, etc). IMO if u can manage a nice downpayment (hopefully 20%) on a condo, townhouse, or single family, then do it! if its your first place, then i wouldnt go buck wild and purchase a 2M mansion in Great Falls...better yet, find something smaller (condo or TH w/garage) with the intent of living in it for 2 years (to avoid cap gains if u sell it w/in 5 years) and then possibly RENT it out later.
the RE market is sluggish right now and its a buyers market as places take a bit longer to sell. gone are the days of NO home inspection, escalation clauses, etc. its now the buyer that is in the drivers seat. fortunately for me, a few years ago i sold one of my condos in ONE DAY for 3 TIMES what i paid at the height of the frenzy i still own other property & rentals but i doubt anything you buy today can match that appreciation since prices are still inflated, so be cautious and realistic.
the tax benefits and building equity are another bonus to buying, but if you dont plan on being in the area for the long term, then renting + nsx may make more sense. IMO, i cant see how a 50k car in an apt complex makes sense, but thats me. either way, make sure u always INVEST IN YOURSELF FIRST >> Real Estate, Savings, Stocks, Funds, 401k, etc. any $$ left AFTER PAYING YOURSELF is money to play with (ie..nsx)
the RE market is sluggish right now and its a buyers market as places take a bit longer to sell. gone are the days of NO home inspection, escalation clauses, etc. its now the buyer that is in the drivers seat. fortunately for me, a few years ago i sold one of my condos in ONE DAY for 3 TIMES what i paid at the height of the frenzy
i still own other property & rentals but i doubt anything you buy today can match that appreciation since prices are still inflated, so be cautious and realistic.the tax benefits and building equity are another bonus to buying, but if you dont plan on being in the area for the long term, then renting + nsx may make more sense. IMO, i cant see how a 50k car in an apt complex makes sense, but thats me. either way, make sure u always INVEST IN YOURSELF FIRST >> Real Estate, Savings, Stocks, Funds, 401k, etc. any $$ left AFTER PAYING YOURSELF is money to play with (ie..nsx)
HOUSE then NSX:smile:
Always, always, always buy appreciating assets first. If there is anything left over, splurge on a depreciating asset.
You get wealthy by making smart decisions while time is still on your side. Take advantage of it now while you can. There will always be toys to buy later when you are much further ahead in the game. It's not like they stopped making NSXs or anything. :biggrin:
You get wealthy by making smart decisions while time is still on your side. Take advantage of it now while you can. There will always be toys to buy later when you are much further ahead in the game. It's not like they stopped making NSXs or anything. :biggrin:
Ski_Banker
Suspended
First, you aren't buying a house. You're buying maybe 5-10% of a house. So, the driveway is yours, and the bank owns the rest. That won't change much for a good 50% of your loan's term.
Second, the mistaken assumption that housing will always appreciate (at least after a few years) and that you can build substantial equity doesn't consider the economic fallback statement "no such thing as a free lunch." The free lunch has been had, as lending practices have become consistantly more lenient over the last 20 years. Anyone with a half-decent job and $5k to their name can buy a house now, and most of them already have.
The Honda engineers that designed the NSX, who purchased their homes in Japan in the 80's, are only now beginning to see their loans above water. We've got a LONG way to go in this downturn in major U.S. metropolitan markets.
Second, the mistaken assumption that housing will always appreciate (at least after a few years) and that you can build substantial equity doesn't consider the economic fallback statement "no such thing as a free lunch." The free lunch has been had, as lending practices have become consistantly more lenient over the last 20 years. Anyone with a half-decent job and $5k to their name can buy a house now, and most of them already have.
The Honda engineers that designed the NSX, who purchased their homes in Japan in the 80's, are only now beginning to see their loans above water. We've got a LONG way to go in this downturn in major U.S. metropolitan markets.
YOU CAN HAVE BOTH!!!
Buy the house. Rent out a room or two for $400/month a piece. Take the money from the rental and finance an NSX.
It's that simple.
Buy the house. Rent out a room or two for $400/month a piece. Take the money from the rental and finance an NSX.
It's that simple.
Question is whether a home is the best for you now or not. If you plan to flip in two years, you better forget buying a home for yourself and start thinking investment.
Your own home and investment real estate are two different things. Generally the one you WANT will not be the best investment/appreciating unit/rental property/ something to flip in 2 years.
My advice is to do neither. Take your money and start looking for a bargain. Not something you "like" for yourself to live in. Find something where the seller is desperate to get rid of, something that can be fixed up a bit, something that is undervalued.
People's first RE purchase is generally their primary home. And they eye it with the intention of living in there for a long time. So now instead of being a financial bargain, it has to have other virtues. My advice is that your first RE purchase be a property you can gain on. Do your homework. Know the market you are in, the right thing will just one day jump at you. Buy it with the intention of selling it, make some money, then move on to another. That can be done ANYTIME in RE, good or bad market, but you have to do your homework.
Once you have made enough money then consider what home you would buy for yourself, then buy things like an NSX. Or an F430 which if you do things right may be more appropriate at the time.
Your own home and investment real estate are two different things. Generally the one you WANT will not be the best investment/appreciating unit/rental property/ something to flip in 2 years.
My advice is to do neither. Take your money and start looking for a bargain. Not something you "like" for yourself to live in. Find something where the seller is desperate to get rid of, something that can be fixed up a bit, something that is undervalued.
People's first RE purchase is generally their primary home. And they eye it with the intention of living in there for a long time. So now instead of being a financial bargain, it has to have other virtues. My advice is that your first RE purchase be a property you can gain on. Do your homework. Know the market you are in, the right thing will just one day jump at you. Buy it with the intention of selling it, make some money, then move on to another. That can be done ANYTIME in RE, good or bad market, but you have to do your homework.
Once you have made enough money then consider what home you would buy for yourself, then buy things like an NSX. Or an F430 which if you do things right may be more appropriate at the time.
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Cars are horrible investments. Plain and simple, even the NSX depreciates.
I don't know alot about real estate, but I was picking my CFO uncle's brain (who knows his stuff about real estate apparently) and he says the bubble should burst in the next 3-5 years.
I don't know what that means for your current situation. I'm young and have alot to learn. I'm gonna sit back and watch this thread..
Good Luck.
I don't know alot about real estate, but I was picking my CFO uncle's brain (who knows his stuff about real estate apparently) and he says the bubble should burst in the next 3-5 years.
I don't know what that means for your current situation. I'm young and have alot to learn. I'm gonna sit back and watch this thread..
Good Luck.
Ski_Banker
Suspended
Funny thing is, everyone on this thread is generally *correct*
Your house purchase decision pretty much depends on where you think R/E prices will be in your area, at the end of your time horizon.
*I* think they will be lower in markets like yours, and, even though prices have come down a bit from a year ago, they have much further to go and a LONG time before the previous level of demand is surpassed and prices are back up. All the while, U.S. homebuilders, with record levels of production capacity (albeit highly variable) will continue churning out new homes at whatever price they can to cover fixed costs.
But, if you think this R/E downturn is just a hiccup...by all means, get the house.
Your house purchase decision pretty much depends on where you think R/E prices will be in your area, at the end of your time horizon.
*I* think they will be lower in markets like yours, and, even though prices have come down a bit from a year ago, they have much further to go and a LONG time before the previous level of demand is surpassed and prices are back up. All the while, U.S. homebuilders, with record levels of production capacity (albeit highly variable) will continue churning out new homes at whatever price they can to cover fixed costs.
But, if you think this R/E downturn is just a hiccup...by all means, get the house.
buy car first, house second.
the housing market is on the way down. all these idiots buying houses with 0 down and negative equity loan with adjustable interests are shitting bricks right now.
with in a year, all these homes will be going default. no one can pay this kind of housing price.
housing is a 7 year cycle so i heard, and we are 2 years way from the bottom. get your toys now, get the house later when all these idiots with adjustable interest loans get the shaft. :biggrin:
lol if you have any adjustable loan you know what im talking about. :tongue:
why are you asking a bunch of idiots (myself being the biggest one of all) about how you should spend your money any ways ? go spend it the way you see fit.
the housing market is on the way down. all these idiots buying houses with 0 down and negative equity loan with adjustable interests are shitting bricks right now.
with in a year, all these homes will be going default. no one can pay this kind of housing price.
housing is a 7 year cycle so i heard, and we are 2 years way from the bottom. get your toys now, get the house later when all these idiots with adjustable interest loans get the shaft. :biggrin:
lol if you have any adjustable loan you know what im talking about. :tongue:
why are you asking a bunch of idiots (myself being the biggest one of all) about how you should spend your money any ways ? go spend it the way you see fit.
Not to forget to mention the record numbers of brand new developments recently. There are so many new houses being built that it would be a lot harder to sell a used home when someone could just pick up a brand new one for the same, or in my area, less money.
I see real estate as a long term investment. Short term transactions in RE is not a simple task for just anyone. Yes, you can definitely make money that way if done correctly. But the problem with RE is that you wil always need a buyer.Just because you want to sell the house, that does not mean there will be buyers out there, and vice versa. Unlike stocks which you can almost always sell your shares any day. The closing cost, commissions and other charges in RE transactions can eat into your profit very quickly in short term investment in RE.
Rental investment is a very good way of recover your initial cost for the house. But lots of work and lots of headaches if you don't have the right people living on your property. It has a learning curve. You may lose money before you make money. My inlaw has been in the rental business for a very long time. I don't want that kind of headache myself.
The car of you dream will change over time. There is always going to be a dream car at any time in your life, now or later, what ever that may be.
I bought my house, paid for my mortgage fully and then I bought my NSX. I delayed the enjoyment for my car in exchange for security in my finance.
Right or wrong, that's up to the individual.
Good luck with you decision. I don't think one can be too wrong for planning the future ahead of time.
Rental investment is a very good way of recover your initial cost for the house. But lots of work and lots of headaches if you don't have the right people living on your property. It has a learning curve. You may lose money before you make money. My inlaw has been in the rental business for a very long time. I don't want that kind of headache myself.
The car of you dream will change over time. There is always going to be a dream car at any time in your life, now or later, what ever that may be.
I bought my house, paid for my mortgage fully and then I bought my NSX. I delayed the enjoyment for my car in exchange for security in my finance.
Right or wrong, that's up to the individual.
Good luck with you decision. I don't think one can be too wrong for planning the future ahead of time.
Just want to comment since it is my line of work and I have done considerable research on the topic that fears of a housing crash are way overestimated in my opinion. A mild correction over the near term in many markets yes, but this is a natural response to the exceptional appreciation observed over the last 3+ years. The record run up in housing prices over that period coincided with a drop in interest rates to historically low levels and for those that have taken finance classes, a home will respond like a bond to changes in interest rates. The recent retrenchment of mortgage rates (I think they have been down 9 out of the last 10 weeks) will also cushion the fall in home prices. Homebuilders are also much better positioned to absorb the recent market changes with much less speculative construction and supply is being adjusted to account for reduced housing demand already.
That was very off topic but the bottom line is finances are a very individual and customized issue. As Ski_Banker and others have said, your decision will depend upon whether you expect real estate to appreciate over your time window, what your tax bracket is, what other investment opportunities you have, and 400 other variables. If you want to get ahead in the long run, then you generally shouldn't be buying expensive cars until you have the excess income to afford them. If you know this but decide you're going to do it anyway, then you should be prepared to accept that you may well be making things harder for yourself in the long run.
Nobody can tell you what the right answer is without an intimate knowledge of your personal finances, your goals, and your expectations of the future. But the one thing I would advise you of is to educate yourself about your options and the costs and benefits of any financial decision you make so that you are much better prepared to make the best decision for your unique situation.
That was very off topic but the bottom line is finances are a very individual and customized issue. As Ski_Banker and others have said, your decision will depend upon whether you expect real estate to appreciate over your time window, what your tax bracket is, what other investment opportunities you have, and 400 other variables. If you want to get ahead in the long run, then you generally shouldn't be buying expensive cars until you have the excess income to afford them. If you know this but decide you're going to do it anyway, then you should be prepared to accept that you may well be making things harder for yourself in the long run.
Nobody can tell you what the right answer is without an intimate knowledge of your personal finances, your goals, and your expectations of the future. But the one thing I would advise you of is to educate yourself about your options and the costs and benefits of any financial decision you make so that you are much better prepared to make the best decision for your unique situation.
sorry double post
No brainer...... house.
What Big D said.
Buy the NSX. House prices will probably see another 5-10% drop. If you purchase now and want to sell in 2 years, you could lose more than the rent you're paying. That could be the price of the NSX. If you want to buy property for investment only purposes, then purchase somewhere other than the US right now.
House first.
HOUSE! Should be a no brainer and this is coming from a mortgage broker. I do out of state business and Maryland and Virginia are both still hotter than most other states.....California (still hot), Aizona, Maryland, Virginia...all states we target to this very day. I'd dump my NSX to own a home in any of those states any day. I still see insane appriciation in those states...sure VA and MD aren't as good as they were a few years ago but still leaps and bounds better than where I'm currently at (Cleveland).
As time goes on, the NSX's value will decrease due to mileage, age etc...
As time goes on for homes, it will INCREASE in value.
As time goes on, the NSX's value will decrease due to mileage, age etc...
As time goes on for homes, it will INCREASE in value.
