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Which modern sports car will offer best return on investment?
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12-11-2019, 06:38 PM | #68 |
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I don't think that one will hold value. If it had been the first gen, back when they actually sold and were competitive, they'd be investment grade. But the current STI is a horrible value and has the same power and motor as a 2004. I'd be a little surprised if Subaru sold more than 209 regular STI's a year.
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12-12-2019, 06:09 AM | #69 | |
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I've been practical for too long, time to start living a little more in the moment, I'd much rather be car rich and house poor than the reverse |
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12-12-2019, 07:06 AM | #70 |
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I agree. And for those of you that are actually making money on your house, you obviously don't live in Illinois. Our property values have dropped by 30 to 50% since the mid-2000s and they've never recovered. So we've lost our more money on our houses than any of the cars we own! And the cars are far more enjoyable and engaging.
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12-12-2019, 11:37 AM | #71 | |
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I'm in my mid 40's, and this year we plan to buy/build our last house. Once we get that out of the way....I'm going to start seriously looking at some "fun" car options. Just need more garage space!
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12-12-2019, 11:55 AM | #72 | |
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12-12-2019, 12:19 PM | #73 | |
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My advice? Own cars you love to drive and can afford to own. If you get lucky and one of them becomes highly sought-after and you can take advantage of that, that's a bonus. I happen to have lucked-out a couple times, but most cars I've owned have been grin-generating money pits. I like to think of things in terms of dollars per hour, maybe since that's how I get paid. If I pay $1 for a can opener and use it once for thirty seconds, that's $120/hour. If I buy a car for $100K and drive it 500 hours in 5 years and sell it for $80K, that's $40/hour. A better value. Which tells me that I NEED TO TRADE ALL MY CAN OPENERS FOR CARS!!!
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12-12-2019, 12:46 PM | #74 | |
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12-12-2019, 12:55 PM | #75 |
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baege, what is your summary of the input received so far?
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12-12-2019, 03:10 PM | #76 |
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12-12-2019, 03:30 PM | #77 | |
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12-12-2019, 06:33 PM | #78 |
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I hava a couple of ex-wives. My kids know pretty well what the good stuff is so I think they'll either hang onto it or sell it for a reasonable amount....doesnt' really matter because I'll be dead then.
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12-13-2019, 12:12 PM | #79 | |
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12-13-2019, 12:55 PM | #80 |
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I guess so. Pure luck; I never imagined it as an investment. But it doesn't matter how much it's worth if it's not for sale. I'd rather have the car, for now, than the money.
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12-13-2019, 03:13 PM | #81 |
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i don't get the house equity thing...
sure it goes up for you, but if you're planning on staying in the same area and keep the same job, then houses have gone up for everyone. So its a wash. And the market cycles: it may go up for a few years and then it'll come down. I don't know too many people who said 'oh look the equity is up, lets sell and move somewhere else and use that profit for a supercar!
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12-13-2019, 10:27 PM | #82 | |
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Let's say your rent is a moderate $3k. After 10 years, you'll have spent $360,000 with nothing to show for it. At least with the equity, if and when it's time to move you can at least roll that over. If you're moving somewhere cheaper (i.e. I sell my house for $2M in San Francisco and retire in Arizona and buy a place for $800k) I pocket that $1.2M. If I'm just renting forever then I'll have $0 to show for it and STILL have to pay rent. If you're savvy, maybe you do move every few years if opportunity strikes. I made a nice return on a few condos because I was opportunistic. To me it's less about the equity, more about leveraging the return on your downpayment when opportunity presents itself. Then roll that over into something bigger, rinse and repeat. Easy way to snowball your money but YMMV.
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12-13-2019, 11:34 PM | #83 | |
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So that home appreciation thing is very geographic. Last edited by thebmw; 12-13-2019 at 11:39 PM.. |
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12-13-2019, 11:38 PM | #84 | |
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The politics here suck. Same democrat controlling Springfield for 3 decades. He's as corrupt as the worst people in the US. People with no jobs, education, or money keep voting for him so the rest of us pay the price. Not sustainable (as is blatantly obvious). But once you have your roots set somewhere, it is very hard to relocate. |
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12-14-2019, 05:20 AM | #85 | |
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we rent now we are looking to buy, but I don't see that it makes a whole lot of sense to have that downpayment 150k bigger as opposed putting that 150K into a car I will love my thinking is put the minimum downpayment required to avoid mortgage insurance, 20% in my province, and then enjoy life more with a sweet keeper car we have no kids and it doesn't look like we'll have any so what's the point of building up all this equity and having all my money sunk in a house It's become clear to me that I will be happier with a 800k house and 200k in cars then with a 950k house and 50k in cars |
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12-14-2019, 11:30 AM | #87 |
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@Flacht3 Using the scenario you gave above, can you please outline the "don't rent" scenario, with the primary dwelling as the only property in the discussion? In other words, for the average person that does not invest in real estate, beyond the primary dwelling.
What would be the monthly outlay in the scenario you presented in Post #82? |
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12-14-2019, 11:54 AM | #88 | |
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But the other reason (for me) I strongly prefer owning is because of how I can leverage a down-payment for larger returns, thanks to the fact that even though the bank is covering 80% of ownership your gains are on your full 100%. This is basic stuff but: Let's say I put 20% down on a $800k condo ($160k down). 2 years later I sell it for $1M. I just made $200k profit on a $160k investment. I'm not looking at it from a "I made $200k profit on $800k" but rather "I made $200k profit on $160k). Then I can take that net return ($360k) and roll that into a more expensive property (20% down on a $1.8M property). Let's say that $1.8M property appreciates an average of 7% a year, and 3 years in I sell. $2.2M. I just made $400k off that $360k. I now theoretically have a 20% down payment for a $3.8M home. The above is wildly optimistic but in the bull market we've had for the last 10+ years it was the norm in a few housing markets. I'm not suggesting the average person can expect this today, but if you're always renting then you'll never be in it. And yes, if you're always renting you can't ever lose your investment either but results tend to favor net gains as long as you can tolerate some occasional pain. I'm also a gluten for punishment and willing to move every 2-3 years when opportunity arises. I don't have kids, and am lucky to have a significant other than is willing to abide. But my primary reason for owning is my first statement. Over X years in an expensive housing market, you're essentially throwing $XXX,XXX away as a sunk cost. I think about it this way, 4-5 years of renting for me would be the equivalent of throwing a Huracan in the garbage. I am by no means an expert or trying to preachy. Just answering your question and outlining why I make the choices I make.
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