Buy a GTR or a House?

tjlazer · 09-11-2011, 06:10 PM

Quote:

Originally Posted by Rui Z

Screw the house. You don't need something that big. I'm assuming you are single. Get a GT-R and a 1 bedroom condo (with a garage) instead.

Haha the young guys say this, and the old guys say get the house. EPIC

birdmanx1 · 09-11-2011, 06:34 PM

Quote:

Originally Posted by tjlazer

well the thing of it is, it's not like he is going out to spend big money and splurging on unneccessary things while only being on the job for 3 months. He is getting a home. If he doesn't buy it he has to pay rent, so the not buying anything because he is only on the job for 3 months mentality isn't really valid. On a GT-R? Yes it is--big time. Like was said, now is a great time to buy! In 6 months or a year the prices and interest rates go go much higher. (hope they do I need my equity to go up!)

TJ, being on the job for only 3 months, should there be any layoffs or downsizing, there is no guarantee that the OP would retain his job (Not wishing this, but it happened to many in this current environment). I always laugh when people make the argument to "buy NOW, buy NOW, the interest rates will go up in 6 months", the same was said a few months ago; the same was said a year ago, the same was said 2 years ago, fact is the current interest rates are even lower

Why should one risk losing emergency funds, retirement savings for the sake of saving up on interests?

Quote:

Originally Posted by tjlazer

Sounds nice and all, but damn who actualy makes that much to keep their mortgage under 28% of their BIMONTHY income! (That's what you meant right? Never heard of getting paid twice a week unless... lol) Hell, if you can keep your mortgage with tax and insurance under your BIMONTHY pay check you are doing good!!!

My mortgage is under 28% of my biweekly income. By biweekly, I meant being paid every other friday (26 times a year) TJ

It's nothing out of the ordinary when one keeps outflows low and automates saving early on - my brother-in-law has his house paid off in Fairfax and he is 33. My community has a lot of Ravens players and many neighbors have the "keeping up with the Joneses/Kardashians" mentality, $200,000 worth of cars in the driveway, no furniture in the house

b1adesofcha0s · 09-11-2011, 06:52 PM

Quote:

Originally Posted by Isamu

having a credit card isn't a bad thing, its actually GOOD to have one one your credit report.. I have a "really good" credit score. and part of that is due to a credit card..

but as everyone has said. Buying a house is an investment. ESPECIALLY in todays market. here in ND, sadly it's a sellers market... so prices are high, like big city prices. and my city has 30k people... lol
with that said, 250k now will net positive returns in a few years.
this is mostly true, however, home values and land values are still going up, it just happens that in a lot of areas people aren't buying because they can't get the loans.. so people are selling cheaper then what their homes are "worth" which is an awesome thing IF you are a buyer

I have credit cards. What I meant was that I pay them off every month so I don't build up any debt

Quote:

Originally Posted by birdmanx1

TJ, being on the job for only 3 months, should there be any layoffs or downsizing, there is no guarantee that the OP would retain his job (Not wishing this, but it happened to many in this current environment). I always laugh when people make the argument to "buy NOW, buy NOW, the interest rates will go up in 6 months", the same was said a few months ago; the same was said a year ago, the same was said 2 years ago, fact is the current interest rates are even lower

Why should one risk losing emergency funds, retirement savings for the sake of saving up on interests?

My mortgage is under 28% of my biweekly income. By biweekly, I meant being paid every other friday (26 times a year) TJ

It's nothing out of the ordinary when one keeps outflows low and automates saving early on - my brother-in-law has his house paid off in Fairfax and he is 33. My community has a lot of Ravens players and many neighbors have the "keeping up with the Joneses/Kardashians" mentality, $200,000 worth of cars in the driveway, no furniture in the house

Ballin like a boss

ZCarMan · 09-11-2011, 06:52 PM

Quote:

Originally Posted by tjlazer

when the housing market bounces back up (lets just hope it does and fast...)

Don't hold your breath, it ain't coming back for a long while.

birdmanx1 · 09-11-2011, 07:03 PM

Quote:

Originally Posted by ZCarMan

Don't hold your breath, it ain't coming back for a long while.

I second that thought Jon. I always laugh when I hear that things are getting better soon. There are huge inventories of distressed properties that have yet to be processed and to be added to the market (further reducing housing pricing, no one is buying because of job crisis). Those properties combined with the robo-signing issues of the largest lenders plus other government actions will hinder prompt recovery...cheers! this is the new normal for a long time

frost · 09-11-2011, 07:05 PM

Quote:

Originally Posted by m4a1mustang

If you've only had your job for 3 months I wouldn't buy anything right now.

wilsonp · 09-11-2011, 07:10 PM

I'm paid biweekly as well - it's not uncommon. Did you mean the monthly payment should be less than 28% of the biweekly check or the biweekly payment?

As for emergency funds, a (very) rough rule of thumb I've read says expect about one month of job search per $10k of annual salary, so I would want a little over that in funds - of course, this varies with your job market and experience, field, etc.

birdmanx1 · 09-11-2011, 07:19 PM

Hey wilson, for the most part, financial planners and real estate advisors (who don't know crap about finance!) would advise to keep mortgage cost less than 28% of your monthly gross income (Your monthly earnings - monthly taxes). I say keep it under 28% of your biweekly income is even better for it gives you extra to sock away and you don't have to rely on GF/fiancee/wife earnings. Many real estate agents will try to push you to go up to 50% under the "because you can afford it" argument.

Just like m4amustang1, zcarman and I pointed out earlier, the general rule of thumb used to be to have 6 months of living expenses (rent, mortgage, bills, insurance ....) socked away but in this environment, having 1 years gives you extra peace of mind.

bacalhau16 · 09-11-2011, 09:11 PM

Im not overly concerned about the 3 month thing. The idea of buying a house, was to get into the market while it is cheap and build some equity. From the house standpoint, I was looking to fix the little things that this house needs and build about $40-$50k in equity in 2 years. Perhaps a little optomistic, but I would like to think its realistic. I would then use that money to put towards the purchase of another income property.
On the other hand, buying a GTR would be awesome. Not that much more money then my Z, if you were to consider having to pay for the Z and the mortgage, versus just a GTR that is. I dont pay rent right now and wouldnt have to for a long time. I could save money while owning a GTR and use that to place a larger downpayment on a house in the future.

nmjaxx9 · 09-11-2011, 09:16 PM

OR just get the GTR and live in it.

bacalhau16 · 09-11-2011, 09:19 PM

I can already foresee some of the questions coming, so here is what I meant buy "saving" money while owning the GTR.

370Z payment = $635/month
mortgage pay = $1050/month
plus all other bills, cable, electric, oil, water etc. We will call it $400/month

or
GTR payment = $1100/month

So, in reality, I would save about $1000 a month and own a GTR.

(Yes, Im playing devils advocate and having fun with this discussion. Go with it.)

bacalhau16 · 09-11-2011, 09:19 PM

Quote:

Originally Posted by nmjaxx9

OR just get the GTR and live in it.

best advice yet, lol

m4a1mustang · 09-11-2011, 09:22 PM

I don't see housing prices going higher any time soon.

bacalhau16 · 09-11-2011, 09:27 PM

so you vote GTR then?

birdmanx1 · 09-11-2011, 09:41 PM

Quote:

Originally Posted by bacalhau16

so you vote GTR then?

He's voting no GTR/no house.

BTW sorry man but your utility bills won't be $400, you are computing it really bad. Cable, Electricity, (HOA), Homeowner Insurance + expenses related to owning a house (lawnmower, tools, you get the drift) ... Depending on how insulated the house is, your utility bill could well be the $400 you planned for all other bills. I feel I must advise you to thoroughly cover everything that will come with your purchase of a foreclosed home (mold, repairs, electric work, foundation work, carpet...) so you don't have a surprise the minute you close on the house.

09-11-2011, 07:10 PM	#37 (permalink)
wilsonp A True Z Fanatic Join Date: Jul 2010 Location: Virginia Posts: 1,134 Drives: 2009 Touring Sp Nav Rep Power: 17	I'm paid biweekly as well - it's not uncommon. Did you mean the monthly payment should be less than 28% of the biweekly check or the biweekly payment? As for emergency funds, a (very) rough rule of thumb I've read says expect about one month of job search per $10k of annual salary, so I would want a little over that in funds - of course, this varies with your job market and experience, field, etc. __________________ 2014 Cayman S PDK Sport Chrono White/Black Was 2009 370Z Touring Sport+Nav 7AT Metallic Black/Persimmon Was 1991 NSX Auto Black/Black

09-11-2011, 07:19 PM	#38 (permalink)
birdmanx1 A True Z Fanatic Join Date: Jun 2010 Location: Baltimore, MD Age: 96 Posts: 3,175 Drives: 370z Nismo Rep Power: 24	Hey wilson, for the most part, financial planners and real estate advisors (who don't know crap about finance!) would advise to keep mortgage cost less than 28% of your monthly gross income (Your monthly earnings - monthly taxes). I say keep it under 28% of your biweekly income is even better for it gives you extra to sock away and you don't have to rely on GF/fiancee/wife earnings. Many real estate agents will try to push you to go up to 50% under the "because you can afford it" argument. Just like m4amustang1, zcarman and I pointed out earlier, the general rule of thumb used to be to have 6 months of living expenses (rent, mortgage, bills, insurance ....) socked away but in this environment, having 1 years gives you extra peace of mind. __________________ 370Z NISMO #0462 \| ClearBra \| 3M tint \| Head/Taillights \| Dynamat \| Black Roof \| Tommy Kaira HB \| CF Parts \| Berk HFCs \| FI SS \| NST Pulleys \| Takeda aFe \| K&N \| H&R Spacers \| Swift Spec R \| SPC F&R \| Zuperman M370 Nismo Vid \| Nismo Journal \| Nismo Rumble

09-11-2011, 09:22 PM	#43 (permalink)
m4a1mustang A True Z Fanatic Join Date: Feb 2009 Location: Northern VA Posts: 55,385 Drives: on two wheels Rep Power: 6963	I don't see housing prices going higher any time soon. __________________ - Steve Zs & Coffee - Saturdays at 10AM in Fairfax, VA and Columbia, MD (Click the banner!) LIKE us on Facebook!

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09-11-2011, 09:11 PM	#39 (permalink)
bacalhau16 Base Member Join Date: Jun 2011 Location: palm coast Posts: 108 Drives: 2013 nissan 370z Rep Power: 14	Im not overly concerned about the 3 month thing. The idea of buying a house, was to get into the market while it is cheap and build some equity. From the house standpoint, I was looking to fix the little things that this house needs and build about $40-$50k in equity in 2 years. Perhaps a little optomistic, but I would like to think its realistic. I would then use that money to put towards the purchase of another income property. On the other hand, buying a GTR would be awesome. Not that much more money then my Z, if you were to consider having to pay for the Z and the mortgage, versus just a GTR that is. I dont pay rent right now and wouldnt have to for a long time. I could save money while owning a GTR and use that to place a larger downpayment on a house in the future.

09-11-2011, 09:16 PM	#40 (permalink)
nmjaxx9 A True Z Fanatic Join Date: Jul 2011 Location: Middletown, Ct Posts: 5,853 Drives: 2011 Nissan 370z Rep Power: 26	OR just get the GTR and live in it.

09-11-2011, 09:19 PM	#41 (permalink)
bacalhau16 Base Member Join Date: Jun 2011 Location: palm coast Posts: 108 Drives: 2013 nissan 370z Rep Power: 14	I can already foresee some of the questions coming, so here is what I meant buy "saving" money while owning the GTR. 370Z payment = $635/month mortgage pay = $1050/month plus all other bills, cable, electric, oil, water etc. We will call it $400/month or GTR payment = $1100/month So, in reality, I would save about $1000 a month and own a GTR. (Yes, Im playing devils advocate and having fun with this discussion. Go with it.)

09-11-2011, 09:27 PM	#44 (permalink)
bacalhau16 Base Member Join Date: Jun 2011 Location: palm coast Posts: 108 Drives: 2013 nissan 370z Rep Power: 14	so you vote GTR then?