Camaro vs House?

[walls]

I don't understand this house thing either. I'm going to get one only when I need the space (I.E. when I start a family), because owning a house for any other reason isn't economical if you're investing your money properly.

http://www.smartmoney.com/personal-f...nership-21111/

Renting an amount of space appropriate for your needs will always be more economical than owning the same amount of space (unless you bought a shack in the ghetto). Taking the money you save by renting and investing it wisely will net you capital gains that you can actually realize through the sale of assets non-essential to your basic needs (food, water, SHELTER, etc). When you want to realize the gains on appreciation on a house (which never really happens given the cost of maintenance, interest payments, etc...save for bubble markets that are merely passing fads), you have to sell that house. Typically buying a house is a somewhat permanent (i.e. your goal should be to pay it off, own it, die in it, etc)...and if you don't sell an asset...it's not really an asset, is it? Nevermind that most people don't even own their "asset" until they're done paying off their 30-YEAR MORTGAGE!

If you want to make an investment, buy stocks and commodities. Those are appreciating assets that you can sell. Anything that you need for basic survival should never be called an asset...because you need it to survive.

[P. Ham]

Originally Posted by DallasRetro

Buying a house is the best investment most people will ever make!

If you have a good dependable car, buy a home now, and by the time you need to get another car, your income will probably have increased. Then since your housing cost should be about the same, (rent keeps going up!), and you make more money, buy a new car (or better yet, buy a demo and save some more money!).

A general 'Rule of Thumb' to remember: A home payment usually won't keep you from getting a car loan, but a car loan will often keep you from getting a home loan!

Makes perfect sense. By the way, what's a demo?

[P. Ham]

Originally Posted by kjd15

You have to do what's best for you. Only you know what you can manage financially.

So true. After re-reading every single response for about the tenth time it's really up to me to take it from here. rolnslo does throw a kink in what seems like an obvious answer though.

[P. Ham]

Originally Posted by walls

I don't understand this house thing either. I'm going to get one only when I need the space (I.E. when I start a family), because owning a house for any other reason isn't economical if you're investing your money properly.

http://www.smartmoney.com/personal-f...nership-21111/

Very interesting read! Thanks for the link.

[rolnslo]

Originally Posted by P. Ham

So true. After re-reading every single response for about the tenth time it's really up to me to take it from here. rolnslo does throw a kink in what seems like an obvious answer though.

I try to help when I can.

Good luck in your decision.

[CamaroSS_LS3]

Originally Posted by walls

I don't understand this house thing either. I'm going to get one only when I need the space (I.E. when I start a family), because owning a house for any other reason isn't economical if you're investing your money properly.

http://www.smartmoney.com/personal-f...nership-21111/

Renting an amount of space appropriate for your needs will always be more economical than owning the same amount of space (unless you bought a shack in the ghetto). Taking the money you save by renting and investing it wisely will net you capital gains that you can actually realize through the sale of assets non-essential to your basic needs (food, water, SHELTER, etc). When you want to realize the gains on appreciation on a house (which never really happens given the cost of maintenance, interest payments, etc...save for bubble markets that are merely passing fads), you have to sell that house. Typically buying a house is a somewhat permanent (i.e. your goal should be to pay it off, own it, die in it, etc)...and if you don't sell an asset...it's not really an asset, is it? Nevermind that most people don't even own their "asset" until they're done paying off their 30-YEAR MORTGAGE!

If you want to make an investment, buy stocks and commodities. Those are appreciating assets that you can sell. Anything that you need for basic survival should never be called an asset...because you need it to survive.

Have you not been watching the stock market over the last year and this week? Your idea of guaranteed gains is just a gamble that hasn't been paying off for many folks.

[CamaroSS_LS3]

Originally Posted by rolnslo

This is the funny thing about our society. We consider renting a bad thing because you are throwing away your money every month but how come everyone considers buying a house an investment?

If anyone actually stays in the same house for 30 years and makes regular scheduled monthly payments the entire time, you actually end up paying the amount financed twice, once for principle and again in interest.



That does not include all the taxes, insurance, maintenance, HOA dues, closing costs, etc...

Now how is that, as an investment, better than renting? Let me give you $300,000 in exchange for something that is only worth $150,000.


I'm guilty of it, just like most of us here are. Just something to think about....

If you rent an apartment for 30 years at say $900 a month (which I doubt would even have a garage for your car) you will have paid $324,000 in rent. How much equity do you have after 30 years? $0.00. Congratulations you just made someone else $324,000 richer while you get nothing. Many of you are forgetting that you still have to pay for your roof over your head no matter what.

[CamaroSS_LS3]

Originally Posted by P. Ham

Very interesting read! Thanks for the link.

You should check the date on that link again. It’s from 2007 before all the world’s economies came crashing down and everyone’s investments and 401K tanked and thousands upon thousands lost their jobs. I wonder how the author feels about his investments now and if he wishes he at least owned some equity in his own home.

If you lose your job and can’t pay your mortgage or rent you can be evicted much quicker from an apartment than from a home you have bought because it takes much longer to foreclose on a home loan.

[rodscamaro]

I wouldn't buy a house yet, but it sounds like you can afford a camaro, so why not!! Many car enthusiasts have purchased cars they maybe shouldn't have but tell that to the guy who is the original owner of a cobra or yenko camaro etc in his garage

[2cnd chance]

Originally Posted by MisterCamaro69

If you buy a house now, let's say it costs you $800. mo.

If you rent an apt. let's assume it costs the same. (normally the same priced apt. will be much smaller but this is a simple example)

Fast forward 20 years... Your house pmt... $800
Your rent, same apt... $1600 (maybe more maybe less)

Equity in home after 20 years on a 30 year note... $30,000 conservative guess
Equity in apt. after 20 years... 0

Many advantages to owning. Few advantages to renting.

YES YES YES!
I'm a R/E agent and even though the market is now down that will change.
More than an investment, a home is a Hedge against inflation!(as the above poster mentioned).
Don't buy a condo/townhouse, reason $ per square foot is crazy then add the H/O fees (crazier), plus as you get older you'll want more privacy (or pick up the guitar like me).

[2cnd chance]

Originally Posted by DallasRetro

I second that... JUST SAY NO to HOAs!!

I AGRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRREE!

[Laserjen]

Originally Posted by DallasRetro

I second that... JUST SAY NO to HOAs!!

I agree. Unfortunately sometimes you don't have a choice -- in my area nearly all condos, townhomes and even single family homes fall under the umbrella of an HOA. If you want to buy a home, you have to pay HOA dues (unless you live out in the country). At least with a single family home the HOA is significantly less than with a townhome, but it's still a complete rip-off!

[Cmaro214]

have you considered leasing the vehicle, you wouldnt be paying a huge amount, and in 3 or 4 years when your reading to buy a home or whenver, you can make a decision on cost factor, if the car and house would be too much. you could give the car up then, or buy it fully with whatever the value would be at the time. they only prob is mileage, gotta keep it down.

[erasedgod]

Originally Posted by CamaroSS_LS3

If you rent an apartment for 30 years at say $900 a month (which I doubt would even have a garage for your car) you will have paid $324,000 in rent. How much equity do you have after 30 years? $0.00. Congratulations you just made someone else $324,000 richer while you get nothing. Many of you are forgetting that you still have to pay for your roof over your head no matter what.

I'm currently paying about $1400 a month in rent (only because I can't put down roots yet) and I don't have a garage, just a tiny covered spot. Even in SoCal, I could get a reasonable place for that. As it is now, when I leave, I'll have nothing to show for it.