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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > General E90 Sedan / E91 Wagon / E92 Coupe / E93 Cabrio > Nice Car or Nice House?



View Poll Results: Nice Car or Nice House?
Nice Car 57 24.46%
Nice House 176 75.54%
Voters: 233. You may not vote on this poll

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      07-30-2012, 03:15 PM   #67
obert
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Stupid thread is stupid.
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      07-30-2012, 03:36 PM   #68
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A typical car is a depreciating asset. Under normal conditions the car will always be worth less than you paid. Even if you don't drive it, the value declines. A house, is a different kind of asset. Can be worth more over time, but even if it declines in value, you still get a tax write off.

If you buy the house, they will line up to give you money to buy a car.
My position for my home is conservative. I leverage, someone else's moeny when I buy cars. My current car loan is a 60 month with a 2.75% interest rate with *NO* money down.

Buy a house, then buy the car later.
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      07-30-2012, 06:29 PM   #69
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My program:

I buy a house every 1 -1.5 years (to get owner occupant mortgage rates, you must live in the home for at least 1 year), live in it until I find the next good investment property and buy it and move. I then rent my previous house which covers my mortgage and on top of that I average $500-1000 per month In cash-flow (depending on the property). I'm 27, I own 4 houses in the "hot" neighborhoods in Denver, I have a fully paid off 08 335xi, a 99
a4 big turbo drag car, and a cabin 1 hour outside Denver. I tend to purchase my homes with 25% down. I must say that not having kids helps big time but that will change down
the road. As you can see I'm a big believer in home ownership and owning income properties. My goal is 10 investment properties by age 35, I'm on my way.
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      07-30-2012, 06:39 PM   #70
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Quote:
Originally Posted by King mode View Post
My program:

I buy a house every 1 -1.5 years (to get owner occupant mortgage rates, you must live in the home for at least 1 year), live in it until I find the next good investment property and buy it and move. I then rent my previous house which covers my mortgage and on top of that I average $500-1000 per month In cash-flow (depending on the property). I'm 27, I own 4 houses in the "hot" neighborhoods in Denver, I have a fully paid off 08 335xi, a 99
a4 big turbo drag car, and a cabin 1 hour outside Denver. I tend to purchase my homes with 25% down. I must say that not having kids helps big time but that will change down
the road. As you can see I'm a big believer in home ownership and owning income properties. My goal is 10 investment properties by age 35, I'm on my way.
you are my hero. this is the exact reason why I put my car up for sale. more. $.
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      07-30-2012, 06:42 PM   #71
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balance things out.....decent home, decent car........easy
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      07-30-2012, 06:58 PM   #72
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I didn't read the thread, but I noticed something similar. People living in older or smaller homes driving very nice cars often. Maybe they are comfortable and happy in their homes, but sometimes it's a bit crazy. I guess everyone has their own priorities which make sense to themselves.
I think whatever the price of your home is, it should be at least 20x that of your car when it was brand new off the lot it seems to make sense when I think of everybody I know and the type of car they drive vs the homes they live in.

Ex: really old home with NO garage and an orange lambo and white e92 m3, the house looked pretty darn small too. To each their own.

20x huh? lol Im 25 ,I bought a brand new house last year(never lived in) $175k 2000sq ft and 3 car garage. I also have 3 vehicles, one of which is my e93 I just bought a few months ago for 30k cash... So if i drive a 30k car my home should be worth $600,000? (20x) ? lol Thats a bit of a reach, maybe somewhere 6-10x MAX
Another thing is interest rate if you go to buy a house with a 30 year loan, your going to be basically paying interest for the first 10 years anyway. If you cant do it within 15 you probably should rent as well (unless you start with a 30yr, either pay more each month or refi soon)

Its all about balance. I have friends that live in (rent) shit holes and drive there 50k bmw's. People like that will never get ahead in life, nor will he ever pay that shit off. Shame on banks for even allowing that to happen. Granted its not as easy to get a loan compared to before I believe its still a bit too easy for people who are not 100% qualified. That and we have the string of people hood rich with it all "in my mommass name" lol
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      07-30-2012, 07:21 PM   #73
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you are my hero. this is the exact reason why I put my car up for sale. more. $.
Good for you. Just think once you have enough properties, you could literally not work and live off the cash-flow. Also, once the properties are paid off... Theres retirement.

Important key note.... Only buy properties in hoods where the house will never go vacant. Never. The day you put it on craigslist, you should have 8 people wanting to rent that day. Location is key.
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      07-30-2012, 07:23 PM   #74
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I'd argue that neither is a good investment straight out of college... A house ties you down to someplace you may not want to be in 2 years, and a car ties you to a job that you may want to quit in the next 2 years...
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      07-30-2012, 07:30 PM   #75
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Quote:
Originally Posted by King mode View Post
My program:

I buy a house every 1 -1.5 years (to get owner occupant mortgage rates, you must live in the home for at least 1 year), live in it until I find the next good investment property and buy it and move. I then rent my previous house which covers my mortgage and on top of that I average $500-1000 per month In cash-flow (depending on the property). I'm 27, I own 4 houses in the "hot" neighborhoods in Denver, I have a fully paid off 08 335xi, a 99
a4 big turbo drag car, and a cabin 1 hour outside Denver. I tend to purchase my homes with 25% down. I must say that not having kids helps big time but that will change down
the road. As you can see I'm a big believer in home ownership and owning income properties. My goal is 10 investment properties by age 35, I'm on my way.
I like this idea as well, but im a bit confused as to how a lender would lend that, even if you put 25% down and are able to get another 25% over a year and a half, thats still 50% debt, after 3-4 that would add up to several hundred thousand dollars which most banks see as very risky (unless your bringing in 300k a year in a regular job). I can see this working on 1-2 in a row, but not sure how a bank would allow so many, unless these are $120k or less homes or something? Ive always wanted to do something like that, but dont think I could move every year and a half either. What is the interest rate difference investment/primary residence? Substantial enough to keep moving?
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      07-30-2012, 08:02 PM   #76
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The rate diff is usually 1-2% in my experience. The moving every 18 months does suck but in long run worth it. I believe my next buy will have to be considered investment whether I live there or not due to a current 4 Mortage limit for owner occupant rates (so I guess I won't have to move on the next purchase).

The homes I have bought have been between 100k and 215k. I have top credit and earn six figures, I have not had problems thus far getting financing. I also have various assets both liquid and stock which helps. Lenders take into account cash-flow on current mortgaged properties, Income, assets, "net worth", .....

Also keep in mind many people purchase with FHA financing thus only need 3% down so nearly 100% debt. I don't think you can purchase multiple properties FHA though.
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      07-30-2012, 08:14 PM   #77
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houze all the wuy
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      07-30-2012, 09:30 PM   #78
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The rate diff is usually 1-2% in my experience. The moving every 18 months does suck but in long run worth it. I believe my next buy will have to be considered investment whether I live there or not due to a current 4 Mortage limit for owner occupant rates (so I guess I won't have to move on the next purchase).

The homes I have bought have been between 100k and 215k. I have top credit and earn six figures, I have not had problems thus far getting financing. I also have various assets both liquid and stock which helps. Lenders take into account cash-flow on current mortgaged properties, Income, assets, "net worth", .....

Also keep in mind many people purchase with FHA financing thus only need 3% down so nearly 100% debt. I don't think you can purchase multiple properties FHA though.
Gotcha, I just signed the loan docs on mine today actually for refinance. Had trouble to begin with because I was self employed with loan so had to have my gf on loan with me for a year. Dropped it from 5% to 3.1%, also went from 30yr fha, to 15 year conventional. Basically kept same payment. Had it appraised for 15k more then i purchased for, and paid about $20k out of pocket to drop it down so I dont have to have any mortgage insurance. I hate paying something that doesnt go towards "anything"

I was debating on taking the money and putting it in a different property instead, not sure If i really could have to begin with though so decided to go this route and try to build up equity in this home and get it paid for as soon as possible. next step is to save up again and try to get an investment property as well nothing better then someone else paying your mortgage
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      07-30-2012, 10:15 PM   #79
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I had the same dilemma. I chose the new car route because I didnt want to settle so fast by myself. I figured I shouldnt buy a new house if I didnt have a wife to give her opinion. Last thing I want to do is get married and the wife says she hates the house.

As far a payments, the average house here is 300k+ and I want to live in a nicer home, so that puts me in about 2.5k month mortgage. I calculated that I would have enough to put 20% down in about 3 years after if i start saving now, minus the car payments. Assuming the BMW will last me 10 years, I dont have to worry about my car breaking down, knock on wood. My old car had 110k on the clock and it will probably not survive another 100k. I do not want to have to make double payments on the house and car, especially if they are expensive.
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      07-30-2012, 10:41 PM   #80
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Unfortunately (or fortunately) I live in Vancouver, Canada so housing prices here are crazy.

Long story short I saved up a 25% down payment on my townhouse which would have been enough to buy my E90 outright. Instead I bought the townhouse so I would have a garage to park my baby in.

After 3 yrs I saved up enough for the downpayment on my E90 which I financed at 1%. Got married a year later, flipped my townhouse a year after that for a 51% profit.

Took that money and bought a house thats now worth close to $1m (thats how crazy Vancouver housing market is)

All in all buying the garage first and then the car was the smartest decision I ever made.
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      07-30-2012, 11:09 PM   #81
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Home prices also differ a lot by state. In many states u can get a nice house for $150-200k, in Boston area its more like 400-500k for a decent home. For 150k u gonna buy a house in a ghetto and if u rent that out chances are very high your tenant ain't paying shit. And if your only way to pay mortgage if your tenant pays you rent......well bankruptcy is not far out

USA is a pretty fucked up country. Tenant can live in your house rent free for at least 6 month or even a year and you can't do a damn thing about it

My buddy had to pay $2000 cash to his tenant so that he moves out from his house because its either that or tenant said he is gonna stop paying rent and live for free. Of course its not a big deal when your family income is around $170-180k+

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      07-30-2012, 11:21 PM   #82
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Have both!
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      07-31-2012, 05:47 AM   #83
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Yoo! Son! You need a fly whip to cart all the chicken heads you be smash'n .....no worries if your bringing them home to Ma's basement!
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      07-31-2012, 06:26 AM   #84
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I saw a post on the M3 boards some years ago that a lot of financial discussion took place.

I think the final consensus was that to afford a $60k car, you should already be able to afford a $400k house so take from that what you will. Personally I think that is good advice, but not very much fun for the driving enthusiasts out there.
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      07-31-2012, 08:19 AM   #85
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ps I have many friends who can afford both, a nice car and a nice house.....but they choose not to and spend their money elsewhere. savings, investments (stocks), 4-5 times per year vacations, etc. I have a buddy whos goal is to buy a nice house in Boston area for cash so he drives a Civic now and for the past 6-7 years.....

I also have friends who make BIG bucks, they have both million dollar houses and $100-200k cars....

In reality I think its all about balancing things out. I dont need a nice house if I cant afford a nice car, and I dont need a nice car or a nice house if I cant afford to take at least 2 vacations per year. I am very happy where I live and with my investment condo that I purchased, I like my car, I would love to get a nice Porsche one day, and I do need more cash for my vacations....hopefully things will pick up at work

oh and almost forgot.....One of my friends is so rich that I can probably say he is one of the richest people in my country. He has seen so much blood and money that now its just paper to him. He rents an apartment and drives Honda CRV......so people are different, he has zero materialistic values

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      07-31-2012, 11:58 AM   #86
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The investment properties I buy are fixer uppers. Buy the dump for 170K put 40k into it and it rents for as much as the house that sold for 450K next door. I purchased my second one for just over 100k and put 110k into it. Location location location, right? Its funny, in Denver there are areas of town that have million dollar homes with a 200k property 3 doors down...
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      07-31-2012, 12:57 PM   #87
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I don't think a car can ever be considered an 'investment', you'll almost never sell it for more than what you pay.
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      07-31-2012, 02:58 PM   #88
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Quote:
Originally Posted by spicytofu View Post
I had the same dilemma. I chose the new car route because I didnt want to settle so fast by myself. I figured I shouldnt buy a new house if I didnt have a wife to give her opinion. Last thing I want to do is get married and the wife says she hates the house.

As far a payments, the average house here is 300k+ and I want to live in a nicer home, so that puts me in about 2.5k month mortgage. I calculated that I would have enough to put 20% down in about 3 years after if i start saving now, minus the car payments. Assuming the BMW will last me 10 years, I dont have to worry about my car breaking down, knock on wood. My old car had 110k on the clock and it will probably not survive another 100k. I do not want to have to make double payments on the house and car, especially if they are expensive.
This is the first scenario Ive seen someone pussy whipped, before the pussy is even there..lol Why would u want to marry anyone who gave a shit what the house looked like?
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