R34 GT-T vs Apartment?

[dojobi]

There's so many ways to make money, so I say just get the car now. The house can come later (probably bad financial advice, but a nice car is worth it).

Anyway, my alternate suggestion is that you wait a bit and get a Toyota Chaser.

And Strich9ine - I too had a fair amount of money saved by the time I was 19 and also only spent bugger all each week. I know you might find it a bit hard to believe, but Ease up on him a bit. It's quite possible.

[jvs007]

get the investment, if u find the right apartment, it could earn alot of $$$$ and ur ass could be in a R34 GTR !!!! in the near future.

[SS8_Gohan]

that was my concern. Getting into financial trouble before i've even left uni and got a proper full time job.

If i get a fixed interest rate, doesn't the RBA decisions on rates become mute for me? :confused:

that's another thing, will i be able to actually find ppl to rent? Only like a $400K place, about 400pw, i'd have a 200K loan. Repayments are around $1100 a month. After spliting rent money with dad, that's like $800 a month going straight to the loan. Prob a little more cos a month isn't exaclty 4 weeks. So i'd have $300 to settle every month. with about $1500 net every month i'm earning that leaves $1200 a month just for me, which is more than enough. So would prob thro whatever i've got at the loan after what's left.

If i don't have tennants? Well servicing the loan wouldn't leave me with much, bout $100 a week. But for someone in my position, i don't spend $100 a week. But still, i wouldn't wanna be just putting everything i earn into loan repayments.

All these larger financial concerns are making think more about a R34 GT-T, and just that. One came thru on Geoff's list $28700 + ORC's!!!! That's like $30k on the road!! And auction grade 4.5!! Was soooo tempted just to go "Geoff, can i have it pls!" Too bad it was the pewter colour

but yeah, very valid points Franks, thanks.

cheers.

[Cubes]

If you wait on the car now, you will more than make up for lost time in 5-10 years down the track.

[Daz]

Iam also in the same position that you are, I have already made my decision though and I opted for a R34 Gt-t. The justification came down to "I'll never be this age again so you might as well live it up, there will be plenty of time in the future to make money"

[Cubes]

Honestly it is easy saying what I said above but I don't think I could do it.. Hang off and wait...

[Guest wilco]

If no one mentioned it yet (this thread is too long for me to read) you need to realise you cannot claim the interest on your loan when it has been used for personal assets. You would need to take the amount used to buy the unit, and claim that as a percentage of the total loan, and the % used to buy the car is just costing you money.

You would be wise to put your money into investments, people who put money into invrstments at your age have a LOT more money a few years down the track, especially if you have the opportunity to buy something decent like that from the beginning. Of course when you sell it you'll poay CGT as well, but driving the Skyline you'll pay performance car tax anyways (speeding fines etc).

[franks]

there are ways to get around CGT if you set it up correctly from the start. just talk to the right people. ie. property lawyer.

[SS8_Gohan]

hey wilco,

ah... don't quite understand ur post there. So i can't just add say $35k to the loan for the car? Some catch there for that?

CGT? hahaha, performance car tax. Wouldn't be surprised if bracksie just made that one up anyway! stupid prick

oh by the way, i didn't say earlier but thanks to Shell before for her post!! Cheers dude

[JH32]

I havent read most of this thread, because its long

but ...

if you have 400k then why don't you buy two apartments?

or units/townhouses/whatever

in Perth at the moment, 200k will get you an alright-ish unit. Not sure about other cities. But then if you have cheaper units or townhouses, and try and get them in trendy-ish areas, you can aim them at the young executive market.

I rented one such unit last year ... I think they sold it when I moved out for around 240k. The owners had only bought it about a year and a half/two years earlier for 200k.

I'd do that I reckon.

Then after a year you could refinance your mortgage, and get your R34

[JH32]

by the way sorry if I'm repeating what others have said in previous posts

if you want, PM a mate of mine on here .... GR33dyMango ... he's a property valuer and knows a lot about this sort of thing.

[Guest wilco]

SS8 you should really talk to an accountant at the very least, or there may be a tax accountant on here? I have the luxury of a former boss being a very good tax accountant so my advice is free

There sure are ways around CGT, depends how long you keep the place for and so on, once again before you go a lawyer, I'd be seeing an accountant at least.

You also have deducations such as the depreciation on the asset and plant (curtains, carpet, water heater, light fittings, air con etc etc) so you'll need to know a few things before you jump in, as don't forget strata rates, council rates, water rates, emergeny services levy, management fees, on top of your interest, but then you have a stack of deductions.

Property is a good thing, but then there are also people saying that it is a bubble waiting to burst. If you are in it for the long term, it will always come good eventually.

The best thing with investments it to KNOW about what you are investing in, or if you are just the guy with the money, then make sure the guy who is doing the leg work for you (your dad?) knows about investing in what you choose, be it property or otherwise.

In the three years I have been investing I could have bought a new R34 GTR on the profit (but profit makes more profit, and at some point I'll call it a day and buy something for myself besides my broken ass shit pile Commode) and some mods to go along, and I am just a dabbler, so think, you could be cruising in your modded R35 with after market quad turbo's.

Don't listen to the real estate agent, they are paid to sell, look into the property in the area you are thinking, look at the returns, the location, the number of property for sale in the area, what is popular (houses, units etc).

Lots of stuff to check out, that's half the fun though.

[Cubes]

Damn.. I am so glad I live in Adelaide.

For 300k you can get a huge arse two story house down near the beach.

[Guest wilco]

Oops, yeah you can claim the interest used for investment purposes, say:

Unit $200k

Car $50k

Loan = $250k

Claimable interest on loan = 80%

Make sure you keep GOOD records too. Rare to be auditted but if you are you'll need to show how you arrived at your numbers.

The other thing, is on investments you usually would not have an interest/principle loan, you just repay the interest, leaving more money in your land to use for other things (logically other investments), and you would not want interest only on your car loan (don't know if they woulkd even allow this as it would probably be considered some sort of All-In-One loan). You'd need to check this out.

Car loans are the work of the devil, I'd keep if seperate if I had a car loan at all, and pay it off quick smart, or better still don't take a loan out on a car, put your money into an investment or just leave it in ING at 4.75% as a worst case.

Also as I saw someone mentioned, interest rates are low, and are expected to drop again twice more this year by .25% each time, but 10 years ago interest rates were at 10.5%, and they will probably go back there in the next ten years, so you don't want to be over extended when that happens. Make sure if rates go up, you can afford it. In the last few years they have varied from about 5.5% to 7.5%, and that is just since I have been playing.

Remember if you are negative geared you are still losing money. You want to try and make it a neutral investment, or worst case positive geared. Neagative gearing is acceptable once you are at the top tax bracket barely ($62501+ as of next fiscal year). And once you are there, you have the feasable option of salary sacrficing into a novated lease to buy a car

Tax is a f*&king mess, lucky you are starting now

[46n2]

Originally posted by BigDatto

Work your ass off for the next few years, you'll have enough equity in the property to buy *whatever * vehicle you desire thru a line of credit at 4-5% rather than crippling yourself now

I couldn't agree more. If you get the car first, and decide to get an apartment later - let's face facts - you won't want to get rid of the car! that's the mistake I made. It's smarter to get rich first, and then get the car. You'll be able to buy it with pocket-change