Nice House vs nice Car? Which takes priority?

Nice House vs nice Car? Which takes priority?

Author
Discussion

okgo

37,860 posts

197 months

Tuesday 21st February 2017
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He probably rents the one he is in.


jimmybell

583 posts

116 months

Tuesday 21st February 2017
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JiggyJaggy said:
Interesting position to answer this question at the moment. Myself and Mrs JJ live in an apartment in central London and we are considering going for a slightly larger apartment somewhere close by purely for the views and amenities in the building. It has been an itch of mine to live in a certain building and do not want to have any regrets before we try for kids etc.

However the difference in the two apartments' costs is financing on a low end super car per month, i.e. £600-700. Im struggling to decide on staying put and getting a supercar or living the dream and living in a kick ass apartment before we move into a house one day...
You can't post that on PH and not be asked to share what building you're talking about! Then we can all have a debate about whether it's worth it, and non-Londoners will call you an idiot, and us Londoners will go "ooh, nice", etcetc wink

okgo

37,860 posts

197 months

Tuesday 21st February 2017
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Trying to think of what it could be...

Strata perhaps?

SirSamuelBuca

1,353 posts

156 months

Tuesday 21st February 2017
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ive had the nice cars. I could have a much more expensive house but since i got rid of my last car im happy to just not have loads of pcp and mortgage going out every month!

will get something special again soon but i will look in to purchasing it outright if it makes financial sense.

Neil1989

35 posts

100 months

Tuesday 21st February 2017
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I'm in the very fortunate position of living with my fiance, no mortgage (she came into some money) and my old flat rented out at the ripe old age of 27 with a 16' M135i on the drive. Prior to being incredibly lucky (which I don't take for granted), I made it a priority to secure a mortgage first. House over car any day! I hear plenty of stories of people around my age who have flashy new cars yet still live at home with mum and dad!

n17ves

591 posts

177 months

Tuesday 21st February 2017
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Own a one bedroom apartment in a Northern city and drive a Cayman GT4 biggrin

JiggyJaggy

1,449 posts

139 months

Tuesday 21st February 2017
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I should have said. We pay rent to a family member where we stay currently at a fair rate and the apartment we are looking to move into would also be rented. Where I am renting is no-one's business but it does have a nice view of the city skyline high up which is one thing I always wanted to experience. I can not justify buying the place given the stamp duty levels as we would look to move to a house in approx 1-2 years long terms for a family etc.

Vintage Racer

619 posts

144 months

Tuesday 21st February 2017
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noway said:
Thanks,im thinking of getting one for the wife...

1.5dci edc (auto)

Your garage looks rather nice.. thumbup
Hardly belongs on PH, but to be honest, we looked at New Range Rovers, F-Types and other exotica and simply decided that we could buy 5 Dacia Dusters for the price of one Range Rover!!

In the TR3a and the Mercedes SL, we have all the fun we need along with loads of new 'like minded' friends. - The 2016 Dacia Duster (Top End and 19,000 Euros) has now done 25k kilometers and I have to say has exceeded our expectations by a long way. - Comfortable, Practical, Economical etc.

We regularly drive 10-12 hour journeys and have not experienced any discomfort - albeit, we now tend to drive within the speed limits!

Dacia might not be 'cool', but do yourself a favour and take a test drive!

Cheers

Glynn

okgo

37,860 posts

197 months

Tuesday 21st February 2017
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Neil1989 said:
I'm in the very fortunate position of living with my fiance, no mortgage (she came into some money) and my old flat rented out at the ripe old age of 27 with a 16' M135i on the drive. Prior to being incredibly lucky (which I don't take for granted), I made it a priority to secure a mortgage first. House over car any day! I hear plenty of stories of people around my age who have flashy new cars yet still live at home with mum and dad!
So you live rent free and drive a 1 series that every tom dick and harry have on tick for buttons a month!

Come on man, go mental!

Jiebo

908 posts

95 months

Tuesday 21st February 2017
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As a 30-something living in London with a 6 figure income and no family wealth, nice car isn't even an option. A 500sq ft 1 bedroom flat in zone 3 is all I can ever hope to achieve in this life. Can't wait to move out of my nice rented flat and live next to poor people.. yay

djc206

12,247 posts

124 months

Tuesday 21st February 2017
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Jiebo said:
As a 30-something living in London with a 6 figure income and no family wealth, nice car isn't even an option. A 500sq ft 1 bedroom flat in zone 3 is all I can ever hope to achieve in this life. Can't wait to move out of my nice rented flat and live next to poor people.. yay
Find a missus with a 6 figure income...

In fairness if you live in central London a car is usually a bit unnecessary isn't it. I know this is PH but if I lived in central London I'd be half cut every evening and using the exceptional public transport system.

jimmybell

583 posts

116 months

Wednesday 22nd February 2017
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djc206 said:
Jiebo said:
As a 30-something living in London with a 6 figure income and no family wealth, nice car isn't even an option. A 500sq ft 1 bedroom flat in zone 3 is all I can ever hope to achieve in this life. Can't wait to move out of my nice rented flat and live next to poor people.. yay
Find a missus with a 6 figure income...

In fairness if you live in central London a car is usually a bit unnecessary isn't it. I know this is PH but if I lived in central London I'd be half cut every evening and using the exceptional public transport system.
If you're on a 6 figure salary and unable to aim above a 500sqft flat then i suspect he already is half cut every evening to explain where all the money goes.


NickCQ

5,392 posts

95 months

Wednesday 22nd February 2017
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jimmybell said:
djc206 said:
Jiebo said:
As a 30-something living in London with a 6 figure income and no family wealth, nice car isn't even an option. A 500sq ft 1 bedroom flat in zone 3 is all I can ever hope to achieve in this life. Can't wait to move out of my nice rented flat and live next to poor people.. yay
Find a missus with a 6 figure income...

In fairness if you live in central London a car is usually a bit unnecessary isn't it. I know this is PH but if I lived in central London I'd be half cut every evening and using the exceptional public transport system.
If you're on a 6 figure salary and unable to aim above a 500sqft flat then i suspect he already is half cut every evening to explain where all the money goes.
Well exactly. A £500k flat (a price bracket that unlocks vast swathes of 2 bed flats in zone 2) is perfectly possible even if only on just over £100k.

NickCQ

5,392 posts

95 months

Wednesday 22nd February 2017
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Just ran the numbers on the above. £100k salary gets you a £450k mortgage at least and you get around £5-5.5k pm net depending on pension contributions. Should look to save at least £2-3k of that, pay around £1,000 to live in a flat share all-in and live comfortably on the remaining £1-2k. So you save £25k p.a. and after two to three years you have at least £60-70k, depending on how much investment growth you got in your low-cost index tracking ISA. Then you buy the flat. After another two to three years you have £60-70k in cash again and you buy an Evora. Or a bigger flat.

okgo

37,860 posts

197 months

Wednesday 22nd February 2017
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NickCQ said:
Just ran the numbers on the above. £100k salary gets you a £450k mortgage at least and you get around £5-5.5k pm net depending on pension contributions. Should look to save at least £2-3k of that, pay around £1,000 to live in a flat share all-in and live comfortably on the remaining £1-2k. So you save £25k p.a. and after two to three years you have at least £60-70k, depending on how much investment growth you got in your low-cost index tracking ISA. Then you buy the flat. After another two to three years you have £60-70k in cash again and you buy an Evora. Or a bigger flat.
How many people earning 100k want to live in flatshares?


NickCQ

5,392 posts

95 months

Wednesday 22nd February 2017
quotequote all
okgo said:
NickCQ said:
Just ran the numbers on the above. £100k salary gets you a £450k mortgage at least and you get around £5-5.5k pm net depending on pension contributions. Should look to save at least £2-3k of that, pay around £1,000 to live in a flat share all-in and live comfortably on the remaining £1-2k. So you save £25k p.a. and after two to three years you have at least £60-70k, depending on how much investment growth you got in your low-cost index tracking ISA. Then you buy the flat. After another two to three years you have £60-70k in cash again and you buy an Evora. Or a bigger flat.
How many people earning 100k want to live in flatshares?
I did it myself, I know several people who have done it. If I look around the office here I could identify several more. From my perspective it was worth deferring gratification for a few years to get out of the rent trap. Plus it's fun to live with your mates for a while.

There are flatshares and flatshares, if you know what I mean - £1k p.m. shouldn't be too grotty or studenty.


okgo

37,860 posts

197 months

Wednesday 22nd February 2017
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All of those people did that while earning 6 figures?


AndStilliRise

2,295 posts

115 months

Wednesday 22nd February 2017
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I suspect not. The people I know who earn 6-digits, not one lives in a flat-share, why would you?

NickCQ

5,392 posts

95 months

Wednesday 22nd February 2017
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okgo said:
All of those people did that while earning 6 figures?
Yes, that's exactly the point I was making.

AndStilliRise said:
I suspect not. The people I know who earn 6-digits, not one lives in a flat-share, why would you?
It's almost as if you didn't read my post...

okgo

37,860 posts

197 months

Wednesday 22nd February 2017
quotequote all
AndStilliRise said:
I suspect not. The people I know who earn 6-digits, not one lives in a flat-share, why would you?
The point I make is that when you hear of these numbers, many assume the way they currently live on 30% of that and extrapolate. The reality is that very few people actually live like that.

Most people accept in London on £35k they will be flatsharing, most people will not accept that at £100k, even if the reality is that they would be best served to do so.