New house or New car?
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Joined: Apr 2002
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From: Diamond Bar
definetly house!! you can use the equity from your home to buy your car (what hyperpm said), but you cant do it the other way around. i bought my car at 22 and my house at 23 but i wish i did it the other way around one year later.
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Joined: Nov 2000
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From: SF Bay Area
Originally posted by TriaXenginE
House.......... you can't live in a car.
House.......... you can't live in a car.
Steve, yes poor me... my S52 is in need of a SC to keep up with the Jones' S54!
Joined: Aug 2001
Posts: 7,252
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From: In a glass case of emotion!
Get the house....you said it yourself that you are renting and not getting anything for your money, and are paying way too much rent. Buy the house, then get the car later. But get the best house you can afford. A 'fixer-upper' can turn into a money pit if you are not careful. If I had to do it over again I would have bought a house instead of some of my cars.
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Joined: Sep 2002
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From: 3rd bedroom on the right
Ok from the options you present the house is the obvious winner, but..... you mentioned that you've only been in your job for 6 months is it secure?
You really need to keep in mind that if you buy a house you are forcing yourself to make funds available for the next x amount of years and this means that job security takes a step up in your priority list since you can no longer afford to bail out and look for another job that you would like better.
Also you're young, have you travelled yet? Of course buying a house is financially the best option atm but again it limits your options wrt 'young fun' i.e taking on a whole new level of responsibility. You need to consider how both options affect where you see yourself. My g/f just bought a unit because she was sick of renting and as much as I warned her I really don't think that she was ready for the sacrifice and responsibility that it takes.
Depending on your financial situation and the market price where you wish to buy it may mean that you have to make adjustments to your social life to compensate for the financial aspects that are obvious as well as those hidden costs that will always eventuate no matter how well you plan.
I am at a similar stage in my life at 22 and I've taken on a few other options based around different wants, needs and goals. I guess that although I am ambitious and probably could be described as greedy, I try to plan things over the years rather than the immediate future.
In my 4th year of full time uni I got a full time job in my field of study and began doing university of an night to complete my degree however since it was my first full time job in the field my pay was nothing to brag about. Being my first regular income I took 6 months of no responsibility keeping the cheapish car that I owned and having fun buying what I wanted at the time such as a snow board season pass etc.
I then started to investigate my options for investments and realised that if I was to buy an investment house it would put me beyond my means of comfortable living and the risk was at a questionable level so I chose to postpone the investment and start saving.
By chance about a month later an S2000 came up and I was able to get it for alot less than it was worth which presented another option. Under normal circumstances I would have never dreamed of buying such an expensive car because the loss would have taken me further from my goal but with this opportunity I was able to keep the S2000 for 14 months and still sell it for a few $Ks more than I paid for it so I did the 'young' thing and had some fun.
But even when I do buy a house I will still continue to rent a unit at around $80/week because any investment that I buy I can rent out for at least $200. Sure the 80 is dead money but I cant live at home and why not have someone else pay my mortgage for me
So wtf am I gibbering about? When I bought the car I felt that a house/unit was beyond my reach for the time being so I put myself in a situation where I had forced savings at little to no cost as a trial period I guess. Now I have a decent salary and a secure job so I recently made the hard decision to sell my S2000 and free up the funds ready for a real investment.
Of course this is all dependent on your wants, needs, goals and most importantly of course your financial ability. Perhaps another level of the decision could be
1a)buy a cheap unit now and sacrifice the youth or
1b)save for the next 18 months and buy the same unit for a bit more but in a more comfortable/stable financial position.
Good luck
You really need to keep in mind that if you buy a house you are forcing yourself to make funds available for the next x amount of years and this means that job security takes a step up in your priority list since you can no longer afford to bail out and look for another job that you would like better.
Also you're young, have you travelled yet? Of course buying a house is financially the best option atm but again it limits your options wrt 'young fun' i.e taking on a whole new level of responsibility. You need to consider how both options affect where you see yourself. My g/f just bought a unit because she was sick of renting and as much as I warned her I really don't think that she was ready for the sacrifice and responsibility that it takes.
Depending on your financial situation and the market price where you wish to buy it may mean that you have to make adjustments to your social life to compensate for the financial aspects that are obvious as well as those hidden costs that will always eventuate no matter how well you plan.
I am at a similar stage in my life at 22 and I've taken on a few other options based around different wants, needs and goals. I guess that although I am ambitious and probably could be described as greedy, I try to plan things over the years rather than the immediate future.
In my 4th year of full time uni I got a full time job in my field of study and began doing university of an night to complete my degree however since it was my first full time job in the field my pay was nothing to brag about. Being my first regular income I took 6 months of no responsibility keeping the cheapish car that I owned and having fun buying what I wanted at the time such as a snow board season pass etc.
I then started to investigate my options for investments and realised that if I was to buy an investment house it would put me beyond my means of comfortable living and the risk was at a questionable level so I chose to postpone the investment and start saving.
By chance about a month later an S2000 came up and I was able to get it for alot less than it was worth which presented another option. Under normal circumstances I would have never dreamed of buying such an expensive car because the loss would have taken me further from my goal but with this opportunity I was able to keep the S2000 for 14 months and still sell it for a few $Ks more than I paid for it so I did the 'young' thing and had some fun.
But even when I do buy a house I will still continue to rent a unit at around $80/week because any investment that I buy I can rent out for at least $200. Sure the 80 is dead money but I cant live at home and why not have someone else pay my mortgage for me
So wtf am I gibbering about? When I bought the car I felt that a house/unit was beyond my reach for the time being so I put myself in a situation where I had forced savings at little to no cost as a trial period I guess. Now I have a decent salary and a secure job so I recently made the hard decision to sell my S2000 and free up the funds ready for a real investment.
Of course this is all dependent on your wants, needs, goals and most importantly of course your financial ability. Perhaps another level of the decision could be
1a)buy a cheap unit now and sacrifice the youth or
1b)save for the next 18 months and buy the same unit for a bit more but in a more comfortable/stable financial position.
Good luck
