potential nsx owner...need advice

[Cozmo]

I have a friend that just rented an apartment for $1100 a month, ouch! That is crazy giving someone that kind of money each month for an apartment.

That sounds pretty good to me right now, and probably many others that have homes going down in value. Buying a house would be 2-3x that much money per month, and I'm sure the amount of interest you're paying each month is way more than that $1100.

I think house prices still have a ways to fall, at least around here. I decided to get my NSX now rather than waiting to sell my condo and get the house. I'm glad I did, because I might be stuck there for a while.

I imagine it is a lot easier to save the cash for a car without a huge house payment too. :biggrin: Sometimes I wonder where all my money went before I had a mortgage.

The other thing is once you get the car you can stop obsessing about saving money for it and dump all your savings toward a house instead. Ask me how I know. :biggrin:

Maybe you need to do a similar deal as I did... promise that you won't start modding the car or buying stuff for it until AFTER you get moved into a house.

 

[aluminiumdream]

well that is how i feel. i would work to pay off the house ASAP. i know that most of you are reading this and thinking "what the hell is a 30 year old doing still at home and not out on his own." Its not that i don't want to live on my own because i do. I just have certain goals in life and, as stupid or immature as it is an nsx is one of them. I will own a house next year for sure. I have to! But if i do buy a house, i will not be financially ready to buy an nsx for a while. That to me is the nail in the coffin.

Most of you probably know what its like to work hard, long hours. To come home to a house i bought would feel good, but not as good as being able to own a car i always wanted. The whole reason i posted on here was to get a feel for what you guys think of the car and whether i should "do the responsible" thing or to live as if tomorrow is the last day.

i have been lurking on this site for a while and there was one post that touched me. i will never forget it. He was a fellow nsx member. From what i read he was a great man, father and husband. he lived and loved life, yet his life was taken so suddenly. I think it was due to a bike accident. After reading all of your posts it made me realize you really never know when your last day is. If anyone of you knew the day you were going to die, would you have done things differently?

I could do the responsible thing and buy a house. Wake up every morning. have breakfast, read the paper. work 8 hours for "the man", come home, make dinner, have a beer, watch t.v. and go to bed, only to do it all over again. Or i could do what some would call irresponsible and buy a car and wait another year. Sorry if i am rambling. And i am sorry for turning this into huge deal, but this is a big step for me and i just don't want to make a bad decision.

 

[lqqky]

If you lived in the Toronto area I would advise you to buy a house first.

I would search out a realtor that owned an NSX and ride around in his car while looking for your dream home.

Since you don't live in the TO area and I don't sell in Stoney Creek ...get the car first! :biggrin:

Carlos Rosa
Royal Lepage Kingsbury Realty
Ontario Canada

Honestly... the house would be a wiser choice, depending of course on job security, market conditions and trends in your area. Canadian market is still very strong and largely unaffected by the meltdown in the U.S. plus, interest rates are at an all time low.
Stoney Creek is not far from me but I don't know enough about you or your market to give you specific advice. Like any investment, you should get as much info as you can from qualified people in your area and judge for yourself.

 

[Big_D]

I have been following this thread and am torn between the two options. I think the big question in my mind is how secure is your job. I know the auto industry is in a big downturn and if you were to buy a house now, what are your chances on being able to keep it. If you bought a good NSX with all maintenence up to date with documentation, you could drive it for a year or two and see how the housing market and the economy plays out. With the car, I think you are more liquid and if you need to sell because of a job change, you might lose a little of the initial outlay, but with a house, its going to take a long time to sell and finding renters is no easy task. I am leaning toward fulfilling your dream and wait for a while to get the house.
Best of Luck on you decision.

 

[Cozmo]

With the car, I think you are more liquid and if you need to sell because of a job change, you might lose a little of the initial outlay, but with a house, its going to take a long time to sell and finding renters is no easy task. I am leaning toward fulfilling your dream and wait for a while to get the house.
Best of Luck on you decision.

I agree. Selling a house takes a lot of time and costs a fortune, even if you find a buyer immediately. With a car like this you may not lose much money at all, depending on the buyer and how long you have it.

We all know the real answer is to hide all your money under your mattress and don't buy anything until the smoke clears :tongue:

 

[MC36]

That sounds pretty good to me right now, and probably many others that have homes going down in value. Buying a house would be 2-3x that much money per month, and I'm sure the amount of interest you're paying each month is way more than that $1100.

I guess it is relative on where you live. $1100 is a few hundred dollars shy of my mortgage! That is a bunch of money to pump into someone else's pocket for 12 months and if things go south with your job you are still on the hook for the rent per your leasing agrement. At least now with the new bailout you will get a huge tax break as a first time buyer and if you can't pay the bill, the gov't will let you reduce your principal or interest rate to keep you in the home:biggrin: How is that!

If your job is so closely tied to the auto industry, should you really be looking at either. I would stock pile as much cash as I could and not tie it up in an NSX or a house. It would give you the option to go back to school if needed or to relocate to an area of the country that is not so dependend on a slumping industry. Cash gives you many, many options. Plus everything is on sale right now on the DOW and you can jump in now and within a few years with a rebound you can buy both with cash money! :wink:

 

[stevieray122854]

If your job is tied to the U.S auto industry, I'd be stockpiling cash, getting rid of debt and not buying a damn thing. That industry is WAY too uncertain right now and this recession is going to get worse before it gets better. Sad thing is that it is a GREAT time to be in a position to buy a house or exotic car if you have stable employment.

Think long and hard about this one, my friend. I waited 18 years for a NSX, you can too---

 

[94BlkNSXinNC]

I just read through this thread, and find it very intriguing. There are two great opinions. As someone looking to get another...yes, another (I sold like an idiot!) I think this hits home a bit for me as well.

My job is in the alcoholic beverage industry (Guinness) so job security is a bit better, but never a certainty. I already own a home, so I've checked that box (unfortunately at this point! Should have rented...). I am in the Vegas market so I can speak first hand about the woes of owning a home in these times.

On one hand, yes my house will go back up...but how long until it does? As long as my job stays secure this is no issue. For your situation, do you think you can wait out that time period? If the worst comes, as some mentioned, you will foreclose no doubt (unless you have your own personal bailout plan!).

Also, with a house you will have a payment, whereas with the car it will be paid in full. You buy the car and lose your job, you simply stay at home and help out with some sort of rent in the meanwhile. With the NSX, the values will have to come up, in my opinion. As the prices get lower, people will be buying these cars that probably shouldn't be (i.e. high school age range) and will certainly result in more accidents. Don't know about you, but I had a few "hiccups" in my early days of driving. Thankfully I drove a Dodge Omni. Total POS, look it up sometime. This will in turn result in less prestine NSX's out there.

As another individual mentioned, the costs of selling the house versus the car are light years apart. Not to mention, the days of lenders waiving fees are gone as well. In addition, if you HAD to sell the house and could (best case senario) break even, you still lose 6% minimum (not to mention nominal closing costs to the seller). If you buy the car now and have to sell in the next 6 months, do you think you could get the price you paid minus 6%? I would venture to say yes.

Finally, the advice to lock your cash away is probably the best advice. I'm not good at taking that advice :biggrin: but it certainly is the most fiscally responsible.

As a side note, you might want to consider some play in the stock market. I wouldn't get crazy with it, but if you ever wanted to buy Wal-Mart stock...do it now! That's a company that's not going out of business and was just featured on one of those market analysis shows. I thought it was pretty sauvy information. I doubt anyone could buy them out...(joke)

Okay, I'm done. Thanks for getting my dormant mind running for a bit on a Sunday.

Good luck Aluminum.

Chuck

 

[Cozmo]

As another individual mentioned, the costs of selling the house versus the car are light years apart. Not to mention, the days of lenders waiving fees are gone as well. In addition, if you HAD to sell the house and could (best case senario) break even, you still lose 6% minimum (not to mention nominal closing costs to the seller). If you buy the car now and have to sell in the next 6 months, do you think you could get the price you paid minus 6%? I would venture to say yes.

That is so true. The amount of commission + fees I'll end up paying to sell my condo (if anyone is crazy enough to buy it) is enough money to buy a 91 NSX outright. My agent says that in the end it comes out to around 9%! The only reason most people could ever even afford to sell a house at all is the prices going up so much. Without that most probably aren't paying anything but interest.

I really don't know how realtors still get away with taking 6% of everyone's house every time it is sold.. I know that they do a lot of work in some cases and often don't make any money if a place doesn't sell, etc. but it seems crazy to me.

If you buy a place and have to sell it shortly afterward you are going to be totally screwed unless you put down at least 10% and manage to sell it for the same as what you paid.

If I was slightly worried about losing my job there's no way I'd be buying a car OR a house. Knowing you have money in the bank if anything goes bad is a much better feeling than a shiny car in the driveway. Of course I have a family to worry about too, which you may not.