Buy a GTR or a House?

bacalhau16 · 09-10-2011, 08:32 PM

Kinda a weird question, but thats where Im at. I got a pretty good job, but have only been there for about 3 months and its going well. Im not in love with it, but pay is good, sooo.....
The house is a foreclosure with a few unknowns. But its dirt cheap at $126k. Pretty large, 4 bedroom, 2.5 bath that needs a little cosmetic work. Some new flooring and paint and things of that nature.
So, I love cars and have always wanted that serious premier sports car, but realize that at my age, 27, perhaps I should be thinking of the future. But man the present is too fun to think far ahead.
So, what would you do?

m4a1mustang · 09-10-2011, 08:36 PM

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

Lemers · 09-10-2011, 08:38 PM

Quote:

Originally Posted by m4a1mustang

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

^ That too

bradz · 09-10-2011, 08:48 PM

Get the house! You won't regret it....

birdmanx1 · 09-10-2011, 09:02 PM

Quote:

Originally Posted by m4a1mustang

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

That's the best advice by far! There are huge inventories on the market for distressed houses that won't go away this year or next for that matter at least till the job market improves; there would always be a GTR available when the time is right. I would build at least a year of emergency funds before thinking about buying anything, especially this early into your new job. You wouldn't want any bad surprise in the event of unforeseen job loss (not wishing this on you at all but good to plan for it)

b1adesofcha0s · 09-10-2011, 09:44 PM

Quote:

Originally Posted by birdmanx1

That's the best advice by far! There are huge inventories on the market for distressed houses that won't go away this year or next for that matter at least till the job market improves; there would always be a GTR available when the time is right. I would build at least a year of emergency funds before thinking about buying anything, especially this early into your new job. You wouldn't want any bad surprise in the event of unforeseen job loss (not wishing this on you at all but good to plan for it)

Hmm great advice and I find this especially helpful for myself. How long after getting a new job should you wait before buying a house (which will be my first major purchase)? How much would be a year's worth of emergency funds? My situation is a little different though. You and Steve already know this, but I'm gonna be finishing school in May and hopefully will land a nice engineering job right afterwards. House is definitely the first major purchase, no questions about it. I live with my parents and they have emergency funds saved up, plus their own incomes. I will probably be paying for the house by myself with both my parents incomes being saved up for emergency funds. Appreciate the advice

Also planning to buy a GT-R after a couple years on the job and after having settled into the house

m4a1mustang · 09-10-2011, 09:48 PM

Quote:

Originally Posted by b1adesofcha0s

Hmm great advice and I find this especially helpful for myself. How long after getting a new job should you wait before buying a house (which will be my first major purchase)? How much would be a year's worth of emergency funds? My situation is a little different though. You and Steve already know this, but I'm gonna be finishing school in May and hopefully will land a nice engineering job right afterwards. House is definitely the first major purchase, no questions about it. I live with my parents and they have emergency funds saved up, plus their own incomes. I will probably be paying for the house by myself with both my parents incomes being saved up for emergency funds. Appreciate the advice

Also planning to buy a GT-R after a couple years on the job and after having settled into the house

I say wait until you have a years worth of essential living expenses saved. So enough to cover 12 months worth of rent, car payment, insurance, food expense, and other necessities.

6 months is the minimum recommended safety net, but in this environment 12 months gives you more of a buffer.

In your case, just focus on saving for a down payment since your parents have the other expenses covered.

b1adesofcha0s · 09-10-2011, 09:53 PM

Quote:

Originally Posted by m4a1mustang

I say wait until you have a years worth of essential living expenses saved. So enough to cover 12 months worth of rent, car payment, insurance, food expense, and other necessities.

6 months is the minimum recommended safety net, but in this environment 12 months gives you more of a buffer.

In your case, just focus on saving for a down payment since your parents have the other expenses covered.

Yeah that's kind of what I was planning on. Should I pay off the car first or just use that money for the down payment of house? I was also thinking about transferring the car to my name after I get full time work and I can get a loan. This way I can start building up my credit since I will be the main person on the loan. I have a better credit score than both my parents right now, but am lacking in credit history.

birdmanx1 · 09-10-2011, 10:00 PM

Quote:

Originally Posted by b1adesofcha0s

Hmm great advice and I find this especially helpful for myself. How long after getting a new job should you wait before buying a house (which will be my first major purchase)? How much would be a year's worth of emergency funds? My situation is a little different though. You and Steve already know this, but I'm gonna be finishing school in May and hopefully will land a nice engineering job right afterwards. House is definitely the first major purchase, no questions about it. I live with my parents and they have emergency funds saved up, plus their own incomes. I will probably be paying for the house by myself with both my parents incomes being saved up for emergency funds. Appreciate the advice

Also planning to buy a GT-R after a couple years on the job and after having settled into the house

My best recommendation is to go with at least 12 months of living expenses. The best advice I can give you is to live like a college student for the next 5 years after your graduation. In that timeframe your income will double and easily triple, you will get more out of your dollar (less charges, no children, no mortgage...) If you get used to leaving not just beneath but way beneath your means anything extra should easily go towards retirement, IRA/mutual funds accounts, stock brokerage accounts, emergency funds, and other investment activities. Automation is your friend.

Don't rush to buy a house for the sake of buying one; my personal rule for the mortgage is that it should be less than 28% of your biweekly paycheck and always count your income not that your spouse/GF/parents. Don't listen to real estate sales people, they have the worst financial ethic, (trust me I know a few and the kind of interests they are paying on their own home) Living way under your means gives you piece of mind and ensures you to save for what's more important long term all the while giving you rooms for personal trips all over the world

b1adesofcha0s · 09-10-2011, 10:06 PM

Quote:

Originally Posted by birdmanx1

My best recommendation is to go with at least 12 months of living expenses. The best advice I can give you is to live like a college student for the next 5 years after your graduation. In that timeframe your income will double and easily triple, you will get more out of your dollar (less charges, no children, no mortgage...) If you get used to leaving not just beneath but way beneath your means anything extra should easily go towards retirement, IRA/mutual funds accounts, stock brokerage accounts, emergency funds, and other investment activities. Automation is your friend.

Don't rush to buy a house for the sake of buying one; my personal rule for the mortgage is that it should be less than 28% of your biweekly paycheck and always count your income not that your spouse/GF/parents. Don't listen to real estate sales people, they have the worst financial ethic, (trust me I know a few and the kind of interests they are paying on their own home) Living way under your means gives you piece of mind and ensures you to save for what's more important long term all the while giving you rooms for personal trips all over the world

Outside of the Z, I live a pretty conservative lifestyle (spending wise) compared to most college kids and I don't see that changing really, it's just how I am. Obviously I'd have to find out where I will be working and what my salary will before I decide. If we were to get the same house we were aiming for last year (or at least similar price), the mortagage is only a few hundred more per month than what my parents are paying for rent. That's what really annoys them most and why they want to buy a house ASAP. They can afford one, but just couldn't get approved for the loan.

tjlazer · 09-11-2011, 05:53 PM

Quote:

Originally Posted by birdmanx1

Don't rush to buy a house for the sake of buying one; my personal rule for the mortgage is that it should be less than 28% of your biweekly paycheck and always count your income not that your spouse/GF/parents. Don't listen to real estate sales people, they have the worst financial ethic, (trust me I know a few and the kind of interests they are paying on their own home) Living way under your means gives you piece of mind and ensures you to save for what's more important long term all the while giving you rooms for personal trips all over the world

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!!!

Baer383 · 09-10-2011, 09:18 PM

Quote:

Originally Posted by m4a1mustang

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

:i agree:

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.

Pelican170 · 09-12-2011, 04:00 PM

Quote:

Originally Posted by m4a1mustang

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

Lemers · 09-10-2011, 08:37 PM

Buy the house. People keep calling it a down market for houses. I say houses are on the best sale in years. When the market rebounds you will sell it for a nice profit plus recoup money you would have thrown away to a landlord.

As nice as a GTR is you wont ever sell it for a profit.

09-10-2011, 08:32 PM	#1 (permalink)
bacalhau16 Base Member Join Date: Jun 2011 Location: palm coast Posts: 108 Drives: 2013 nissan 370z Rep Power: 14	Buy a GTR or a House? Kinda a weird question, but thats where Im at. I got a pretty good job, but have only been there for about 3 months and its going well. Im not in love with it, but pay is good, sooo..... The house is a foreclosure with a few unknowns. But its dirt cheap at $126k. Pretty large, 4 bedroom, 2.5 bath that needs a little cosmetic work. Some new flooring and paint and things of that nature. So, I love cars and have always wanted that serious premier sports car, but realize that at my age, 27, perhaps I should be thinking of the future. But man the present is too fun to think far ahead. So, what would you do?

09-10-2011, 08:36 PM	#2 (permalink)
m4a1mustang A True Z Fanatic Join Date: Feb 2009 Location: Northern VA Posts: 55,385 Drives: on two wheels Rep Power: 6963	If you've only had your job for 3 months I wouldn't buy anything right now. __________________ - Steve Zs & Coffee - Saturdays at 10AM in Fairfax, VA and Columbia, MD (Click the banner!) LIKE us on Facebook!

09-10-2011, 08:48 PM	#4 (permalink)
bradz Enthusiast Member Join Date: Jul 2009 Location: Pinellas County Florida Posts: 348 Drives: 09' 370z MB 6spd Rep Power: 16	Get the house! You won't regret it.... Last edited by bradz; 09-10-2011 at 08:52 PM.

09-10-2011, 08:37 PM	#15 (permalink)
Lemers A True Z Fanatic Join Date: Mar 2010 Location: Izmir, Turkey Posts: 15,371 Drives: 2012 Traverse LTZ Rep Power: 53	Buy the house. People keep calling it a down market for houses. I say houses are on the best sale in years. When the market rebounds you will sell it for a nice profit plus recoup money you would have thrown away to a landlord. As nice as a GTR is you wont ever sell it for a profit. __________________ 2010 Black Cherry Touring/Sport/Nav Now - 2012 Travese LTZ until I leave for Turkey

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