House Or Car

[SECURITY]

buy a house (residential home loan), rent it out to someone you know for 6 months (off the books ofcorse). you need to live in the place for 6 months before you get your first home owners grant so renting it off the books counts as you living in it.

thats 7k from the government + someone helping you pay off your home loan for 6 months.

then do what you like with the 7k.

[nachoman]

go the house /investment property

when i was 19 my sister convinced me to to go halves on an investment townhouse and rent it out

in 8 years since then i borrowed 20k from the bank to mod my first MGB

paid off that personal loan and then sold the investment property.

With that money i was able to buy my current car ( lexus is200 ) and put a healthy deposit my new home (roughly 365k )

and now at 31, im looking at selling my car again and use some of the money to buy a cheaper car ( stagea etc ) and the rest towards managed funds

[Mickroy]

I live in north eastern qld; the biggest real estate hotspot in the country... the mines are going berserk, and if you're not a miner on 100k, and not already in the property market, then you dont have a hope in hell. Like me. Property has not been an option... but thats ok, coz there's alot more out there.

Im 24 and only started full time work about 4 years ago. I knew i wanted a skyline & then I would be happy to nuckle down and save. So I bought one straight up, paid it off within 12mths, and then saved my arse off. Now I have near 100k diversively working for me... shares, managed funds, touch of property. Not to mention I have no debt & dont earn a mint.

It comes down to planning, and what you want. Sure, my car doesnt run 10's, and its sometimes hard to see your mates latest & greatest mods... but I dont want to work forever, and i figure if I put in the hard yards now, I may be able to enjoy such finer things later in life.

Curse the gtr temptations left right & center.

[saff_cossie]

Definately a house. Was in a similar situation to you. I sold my car, shared a car/had lifts/cycled then bought an apartment. Once I had the apartment, getting a car was easy. The g/f was happy for me to have a car as she had her own place to live in and wasnt renting.

No brainer IMO. BTW we were both under 25.

[AzzurrA]

heh, whatever i buy (if i buy a house) i'll be buying it by myself... women are money grubbers anyway.... no chick is owning half of what i spent my hard earned on so she can clean me out if we have a bust-up

[VB-]

heh, whatever i buy (if i buy a house) i'll be buying it by myself... women are money grubbers anyway.... no chick is owning half of what i spent my hard earned on so she can clean me out if we have a bust-up

i know a couple of guys that think like you two, they make a great couple

[predator]

You got a point.. but even if you are in a de-facto (e.g. just a g/f) in 2 years they are in many cases entitled to 1/2 of everything you own anyhow.. how screwed is that?

With 1/3 marriages or whatever ending, you've got a 1 in 3 chance of losing 50% of your home anyhow ..

[AzzurrA]

prenup ftw

[Morgs]

Got to agree with you there; there are those that get it, and those that don't. If you have roadblocks to understanding the concept (namely a misconception or pre concieved opinion) are less likely to get their head around it.

A diverse investment portfolio is best; and it depends on your life priorities/goals but the opportunity cost of losing out on another $20k on depreciation over the next few years on a new car + costs of interest on the loan would be pretty evident if you compared it ot even a low growth investment strategy.

I don't think you understand how it works then mate.

[700HP-GTR33]

Sold my Lancia 1800B Coupe to buy a house...took me 20 Years to buy another sports car.

Houses now cost a lot more than back then so choose wisely.

Business deals,marriage,kids and finances all need to be taken into consideration

to answer your question.

[BAMR33]

Yes.... my R32 GTS-t owes me roughly 30 - 35k.... its advertised for $16750....

Hrm, don't really want to get a R34 GTR (or any jap car for that matter) as it's simply too old for what i want.... also too many KM....

Car i'm looking at is a Volkswagen Golf R32 (Mk IV) - only 200 sold in Aus.

Yes, it's a step down in performance to my GTS-t, but it's also a step up in style, build quality, refinement etc (hey, i'm getting soft in my old age, and what i want from a car has changed since i bought the skyline )

ahhahhahhahahhahhahhhahhah

House for sure, no question about it. Volkswagen are 'Gh' gay and make you feel like less of a man while driving one. House or r34 GT-R/series 8 rx-7, car will win every time for me.

[SKY 34]

as you said you still want to have some fun, enjoy your car for another year, R33 is a good car there are lots of potential, do crazy stuff, wide body, full rebuild etc etc, for another year.

You can have fun but of course also do realize that time is running out, what age do you intend to get married? 26-27? and by 30 probably 1 or 2 kids? the moment you have children that is the worst investment possible. Your financial burdens increases as your partner have to stay home for the children

Now, You may realize that you need at least 20% deposit on house and at the current rate, a decent house ($400k) requires about 80k deposit. for most people of our age that requires about two years to build. by then we'd be 25, just a year or two before the marriage.

in that two years you probably have to spend money on your future wife and maintenance for your super modified R33, and when you get married you'll need at least $30k to please your wife. those two years you can't save much, $50k tops?

$400k - $80k deposit -$50k savings and still owe the bank $270k. Not to mention the 7% or so interest each year. Then your children pops, paying for their medical bills, etc etc. will take at least another 7-8 years to finally cover the mortgage. Meaning 1/3 of your life will be in dept.

time is running out fast if you see further, I don't discourage spending money on the car for the time being. We are young we still need to enjoy, however having a loan for car is just not worth it. The future implications is too great, imagine on top of the 7% interest you have another 12-15% interest for personal loan. by the time you finish your mortgage, 1/2 of your life will be in dept.

do with what you have: "contentment is not the fulfillment of what you want, it is the realization of what you already have"

[Cubes]

Definitely HOUSE!

You can always do the car thing later.. or... do both... Buy a cheaper little R32 strip the thing and have some fun with it as a track/hill climb car.

[fun33]

Car i'm looking at is a Volkswagen Golf R32 (Mk IV) - only 200 sold in Aus.

DEFINATELY a house..

Yes, it's a step down in performance to my GTS-t, but it's also a step up in style, build quality, refinement etc (hey, i'm getting soft in my old age, and what i want from a car has changed since i bought the skyline )

volkswagen? dude.. i signed up just to tell you to stay straight and keep that skyline, anybody who spends that sort of money on a VOLKSWAGEN no offence, deserves to get laughed at! your friend is talking sense, tell him that your thinking of buying a 34gtr instead - and then maybe he'll understand where your coming from.

but volkswagen? dude .. shit!?

[Kaido_RR]

...but you can't race a house

[_8OO5TED_]

nor can you get ahead in life spending thousands on a modified grey import.

House will always come out on top, but theres nothing stopping you having the best of both worlds, a nice little slab of concrete and a quick import

[Cubes]

Thats exactly right.

Especially when R32's are so damn cheap. There's a few R32 GTS4's that have extreme potential (with a little RB30 DOHC) for 8-10k.

[R34GTTSKY]

go house dude

apparently governments settin up this thing where if u buy now they helpu pay for 40percent of how much ur buyin the house for but when u sell the house in say a couple of years time or sumthin u have to give them back 40per cent of wot it's worth at the time of sellin either way they win but it'll make it easier for u to get a house:)

[Cubes]

It does help get a little collateral behind you BUT..

I'd prefer to buy land and sit on it for a while then sell or use it as collateral to get a house built.

Building is cheaper but in the long run it works out more expensive as landscaping etc works out quite expensive.

[Wink]

I'm in the EXACT same position as AzzurrA and also deciding between property and a house.

Looking at a 40k car and I'm 23 too.

I lie in bed awake many nights thinking about this big decision.

All you guys saying buy a house etc are all from out of Sydney. Sydney property prices are obscenely high.

And as Yidz said, the payment is around $500 per week which I can barely afford.

What to do!?