S2000->EVO->S2000?
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From: Windsor,On,Can&Spokane WA
Originally Posted by jwa4378,Jun 10 2005, 08:25 AM
House = Equity
Equity in 1-2 years = LOW interest home equity loan for S2000
Buying the house is a win-win situation. You buy something that appreciates, get the equity from it in 1-2 years AND THEN get the S2000 (at a MUCH lower interest rate than any consumer loan....PLUS the interest on that equity loan is TAX DEDUCTIBLE)
Just my $.02 as a Master's Student in Accounting.....
Equity in 1-2 years = LOW interest home equity loan for S2000
Buying the house is a win-win situation. You buy something that appreciates, get the equity from it in 1-2 years AND THEN get the S2000 (at a MUCH lower interest rate than any consumer loan....PLUS the interest on that equity loan is TAX DEDUCTIBLE)
Just my $.02 as a Master's Student in Accounting.....
House. Without question. Regardless of market. It never "really" goes down. Fluctuates, yes...
Equity=POWER and monitary self worth.
CAR=Depreciation
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Joined: Jan 2004
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From: SF, California
Ok...so the only person that you really should be listening to is you. For either of these cases YOU REALLY need to do your homework. You need to decide for YOU how much enjoyment you're going to get out of the S versus how much it will cost you. You also have to decide what else could you do with that money? Could you enjoy it more doing something else? The answer to your question may be neither. Maybe you'll have more fun traveling all over the world. You really need to think about it.
As for the house, this is something that you MUST MUST MUST do your homework on. There are a bunch of people making poor financial decisions in the housing market because of poor homework. Equity is NOT a given. Our current housing market is probably the risky it's been in some time. You have to be prepared for the possibility of a short term equity loss. Can you withstand a 10% drop in your house price over the short term? Are you going to live in it long enough for it to regain value if the market drops? This does not mean that it will happen, but considering the risk in today's market you should be prepared for that possibility. No investment is assured, just ask the japanese, housing prices in japan are still down 24% from their high. Don't walk into a house assuming that you're going to make money. There is alot of homework that you really need to do about the tax benefits, how long you intend to stay there, long term housing market price growth(don't just look at the last couple years), and the amount of risk you are willing to take. Are you ok with staying in a place 5-10years for prices to recover if they drop?
Not saying that a drop will happen but in today's market you HAVE to consider the possibility that it can. Don't assume the market is always going to go up. The Japanese assumed that in the late 80s-early 90s and they're still recovering. Many people assumed that about the stock market in 2000 and how many people lost there life savings on risky stock market investments that they assumed couldn't go down.
The number one lesson is to be cautious and careful, but above all else before spending 10s of thousands of dollars. DO YOUR HOMEWORK!
As for the house, this is something that you MUST MUST MUST do your homework on. There are a bunch of people making poor financial decisions in the housing market because of poor homework. Equity is NOT a given. Our current housing market is probably the risky it's been in some time. You have to be prepared for the possibility of a short term equity loss. Can you withstand a 10% drop in your house price over the short term? Are you going to live in it long enough for it to regain value if the market drops? This does not mean that it will happen, but considering the risk in today's market you should be prepared for that possibility. No investment is assured, just ask the japanese, housing prices in japan are still down 24% from their high. Don't walk into a house assuming that you're going to make money. There is alot of homework that you really need to do about the tax benefits, how long you intend to stay there, long term housing market price growth(don't just look at the last couple years), and the amount of risk you are willing to take. Are you ok with staying in a place 5-10years for prices to recover if they drop?
Not saying that a drop will happen but in today's market you HAVE to consider the possibility that it can. Don't assume the market is always going to go up. The Japanese assumed that in the late 80s-early 90s and they're still recovering. Many people assumed that about the stock market in 2000 and how many people lost there life savings on risky stock market investments that they assumed couldn't go down.
The number one lesson is to be cautious and careful, but above all else before spending 10s of thousands of dollars. DO YOUR HOMEWORK!
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Joined: Mar 2005
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From: █ SF, CA █
Depending on how expensive your house is, it may be worth it in the short run even if prices do drop. Your (house payment - tax savings) could easily be less than rent...could easily be higher too of course...
I just now bought my car and I was in your situation 2.5 years ago(except for the EVO!). I have gained about $175K in net worth and saved $20K-$30K in taxes by going with the house over the last 2.5 years. I could sell the house now and get 8.4631 new S2000s! I would have spent $45,000 in rent over the last 2.5 years if I bought the car instead... + paid higher taxes.
I just now bought my car and I was in your situation 2.5 years ago(except for the EVO!). I have gained about $175K in net worth and saved $20K-$30K in taxes by going with the house over the last 2.5 years. I could sell the house now and get 8.4631 new S2000s! I would have spent $45,000 in rent over the last 2.5 years if I bought the car instead... + paid higher taxes.
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Joined: Nov 2002
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From: Jacksonville, FL
Originally Posted by Sgt Skidmark,Jun 10 2005, 06:12 PM
Forget the house
Forget the S2000
Blow it all on hookers and beer.
On second thought, forget the beer!
Forget the S2000
Blow it all on hookers and beer.
On second thought, forget the beer!
Hookers and crack...more bang for your buck (no pun intended).
Craig
Joined: May 2005
Posts: 4,331
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From: Tallahassee, FL
I agree with CrazyPhud....
I am in the real estate business, as well as being a Master's Student @ FSU in Accounting. The Real Estate market is going NUTS now, because the economy is in the tank (thanks a LOT Bush.....yes its HIS fault.....WAR = DEBT. War USUALLY = MORE manufacturing jobs / GDP output, but now that outsourcing has taken over that is not the case). The smart thing to do, if you are going to indeed buy a house, is to lock in NOW or within the next month (locks usually good for 45 days). Greenspan is going to be raising interest rates AGAIN next quarter, when the FED meets again, to combat rising inflation.
Real Estate is a pretty solid bet. The market took a dip in the early 90's, but the pickings are still good. The reason why real estate usually dips is because of rising interest rates, because it crowds out the market (people can't afford what they once could). But this is usually the case only in EXTREME situations. In the 90's rates were around 11%....double what they are now. Greenspan will not raise more than .75 - 1% / quarter, to avoid economic backlash / shock. So if you buy now, even with rates on the rise, the market will most likely not be really effected for another 2-3 years, at which time you should have some equity built up. Remember, equity is not just appreciation, but also paid down principle (negligible in 30 yr. mortgage over 2-3 years...but a factor in 15 yr. mortgages over that time).
Sorry for the rant, but I am passionate about real estate.....I am on my 3rd house....also produces GREAT rental income if you can swing the financing and live in a college / rental area.
I will stop now....tired....long day.....bed time.....
John
I am in the real estate business, as well as being a Master's Student @ FSU in Accounting. The Real Estate market is going NUTS now, because the economy is in the tank (thanks a LOT Bush.....yes its HIS fault.....WAR = DEBT. War USUALLY = MORE manufacturing jobs / GDP output, but now that outsourcing has taken over that is not the case). The smart thing to do, if you are going to indeed buy a house, is to lock in NOW or within the next month (locks usually good for 45 days). Greenspan is going to be raising interest rates AGAIN next quarter, when the FED meets again, to combat rising inflation.
Real Estate is a pretty solid bet. The market took a dip in the early 90's, but the pickings are still good. The reason why real estate usually dips is because of rising interest rates, because it crowds out the market (people can't afford what they once could). But this is usually the case only in EXTREME situations. In the 90's rates were around 11%....double what they are now. Greenspan will not raise more than .75 - 1% / quarter, to avoid economic backlash / shock. So if you buy now, even with rates on the rise, the market will most likely not be really effected for another 2-3 years, at which time you should have some equity built up. Remember, equity is not just appreciation, but also paid down principle (negligible in 30 yr. mortgage over 2-3 years...but a factor in 15 yr. mortgages over that time).
Sorry for the rant, but I am passionate about real estate.....I am on my 3rd house....also produces GREAT rental income if you can swing the financing and live in a college / rental area.
I will stop now....tired....long day.....bed time.....
John
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From: OH
Originally Posted by HwangTKD,Jun 10 2005, 04:01 AM
I would have to put off buying my 1st home for about 2-3 years. What the hell do i do. My brain tells me to go for the house but my heart is telling me to get the s2k. What would you do? Oh and I dont have a wife or kids and currently live in an apt.
seriously though, pm me.-tim