Conundrum: House? Or Car?
Discussion
Hello hello.
Firstly, forgive me if the following outpouring sounds like a first-world-problem or a plea for sympathy - it is neither, I promise! I just... Don't have any real models of adulthood around me, or even very many friends to bounce ideas off. As such, in the modern style, I am turning to the internet in search of advice
(which could be very dangerous, I realise)
The crisis is this: I suddenly have almost 30k in savings. Despite being mechanically-limited, I want to throw it all into owning a special/unusual/rare/'dream' car - a risk, of course, but... Man, the chance to own something beautiful and special... And to do it now, before electrification takes over, or certain cars disappear (or worse, skyrocket in price), or before I am too old and crippled to ever do so... I mean, it is an existential tussle as old as time itself, I know.
Recently, though, I have begun to wonder if I should take the risk and throw myself into home ownership with that money (I am in the North-East; I should imagine I'll be able to get half a village with that kind of deposit
). Trouble is, I am very securely tenanted in a social-housing property, with modest rent, and buying a house just feels terrifiying. Amazingly, in my life I've only known one person who owned their home, so it is a daunting prospect - almost feels like it's just "not something for the likes of me". I also realise now might not be the best time to jump into the house-buying bubble, given the way the economy/government is...
So I just don't know. I feel far too naive, ill-equipped and ill-informed to really be able to make this kind of decision, so... Surely you lot have some advice? The wise elders who have been there and done it? Any input is greatly appreciated!
Thanks!
Firstly, forgive me if the following outpouring sounds like a first-world-problem or a plea for sympathy - it is neither, I promise! I just... Don't have any real models of adulthood around me, or even very many friends to bounce ideas off. As such, in the modern style, I am turning to the internet in search of advice
(which could be very dangerous, I realise)The crisis is this: I suddenly have almost 30k in savings. Despite being mechanically-limited, I want to throw it all into owning a special/unusual/rare/'dream' car - a risk, of course, but... Man, the chance to own something beautiful and special... And to do it now, before electrification takes over, or certain cars disappear (or worse, skyrocket in price), or before I am too old and crippled to ever do so... I mean, it is an existential tussle as old as time itself, I know.
Recently, though, I have begun to wonder if I should take the risk and throw myself into home ownership with that money (I am in the North-East; I should imagine I'll be able to get half a village with that kind of deposit
). Trouble is, I am very securely tenanted in a social-housing property, with modest rent, and buying a house just feels terrifiying. Amazingly, in my life I've only known one person who owned their home, so it is a daunting prospect - almost feels like it's just "not something for the likes of me". I also realise now might not be the best time to jump into the house-buying bubble, given the way the economy/government is...So I just don't know. I feel far too naive, ill-equipped and ill-informed to really be able to make this kind of decision, so... Surely you lot have some advice? The wise elders who have been there and done it? Any input is greatly appreciated!
Thanks!
Half and half? Fix for 5 years and refinance to get the car?
My strong advice would be the house, not only can you do the above, you're not throwing your money away because your buying where you live not renting it and when the day comes the mortgage is gone you can down size and spend all your house money on your new dream car
A time that sticks with me is when I worked with a labourer when I was saving for my first house deposit. He said the worst decision he ever made was not buying a house. He wouldn't be lugging washing machines upstairs and sh
t around a building site other wise.
Also if you get a good mortgage broker they'll help you out a lot, we had a local one from the mortgage advice bureau who was excellent.it is daunting but it's stupid not too
My strong advice would be the house, not only can you do the above, you're not throwing your money away because your buying where you live not renting it and when the day comes the mortgage is gone you can down size and spend all your house money on your new dream car
A time that sticks with me is when I worked with a labourer when I was saving for my first house deposit. He said the worst decision he ever made was not buying a house. He wouldn't be lugging washing machines upstairs and sh
t around a building site other wise.Also if you get a good mortgage broker they'll help you out a lot, we had a local one from the mortgage advice bureau who was excellent.it is daunting but it's stupid not too
Edited by Ryyy on Thursday 8th June 21:18
House every single time!
You'll always have to pay rent in social housing but once the mortgage is paid off you're in a very secure position for retirement.
One tip I was given was that depending on interest rates, for every £1 you can over pay at the beginning you'll save roughly £3 at the end.
You'll always have to pay rent in social housing but once the mortgage is paid off you're in a very secure position for retirement.
One tip I was given was that depending on interest rates, for every £1 you can over pay at the beginning you'll save roughly £3 at the end.
I remember overhearing a conversation between my neighbours years ago, late 90's. Ours was privately owned, theirs still council.
They were discussing whether to buy the house for around 16k, or buy a new car.
I remember it vividly as it seemed to be the most dumb choice imaginable, obviously they should by the house. But no, they bought a car.
Wow.
They did actually buy the house some years later with inheritance money, but it wasn't 16k any more.
They were discussing whether to buy the house for around 16k, or buy a new car.
I remember it vividly as it seemed to be the most dumb choice imaginable, obviously they should by the house. But no, they bought a car.
Wow.
They did actually buy the house some years later with inheritance money, but it wasn't 16k any more.
House. No question. After a few years your car will be shagged, worth nothing, the bills will be horrendous. Dream cars can cost nightmare money. Take secondhand Porsche ownership, for example. You can buy a 911 996 for the money you have. The problem is you’re now in possession of a car that can go expensively wrong. If a garage picks up something like bore scoring or your IMS bearing borks you’re looking at an engine rebuild for around £12k. Suddenly your dream car is almost worthless if you don’t have the funds to fix it.
Buying a house might feel scary - and it can indeed be a stressful process - but once you’re in it’s yours. The mortgage payments may well be similar to what you’re paying now. And every mortgage payment you make will go towards you owning the house outright. You end up with nothing when you rent. The house is never yours, even if it is home.
There will be plenty of time in the future to buy your dream car. Once you’ve settled in your new home and you’ve been paying off your mortgage for a few years you’ll have an idea what you can afford. If the mortgage payments are getting too much you can always get a lodger or two to help out.
Go for it. You will be pleased you pushed through the fear once you’re in and you have your own place.
Buying a house might feel scary - and it can indeed be a stressful process - but once you’re in it’s yours. The mortgage payments may well be similar to what you’re paying now. And every mortgage payment you make will go towards you owning the house outright. You end up with nothing when you rent. The house is never yours, even if it is home.
There will be plenty of time in the future to buy your dream car. Once you’ve settled in your new home and you’ve been paying off your mortgage for a few years you’ll have an idea what you can afford. If the mortgage payments are getting too much you can always get a lodger or two to help out.
Go for it. You will be pleased you pushed through the fear once you’re in and you have your own place.
If you have secure cheap rent, then maybe it's not such a simple decision. What's the yeild do you think? If it's under 3% then it's not such a crazy financial idea to rent, assuming you don't have a dick of a landlord and don't mind having no control over long term and DIY.
Whether you have enough money left over after housing costs to spend money on a recreational depreciating asset, should be pretty clear whether you rent or buy.
Whether you have enough money left over after housing costs to spend money on a recreational depreciating asset, should be pretty clear whether you rent or buy.
£150,000 is a healthy budget for property in the North East. Your cash will put you in a good position to borrow money with a 10% deposit and leave you a nice fund for anything you'd like to do to the house. Once you're settled in then you can think about a car or learn to become more mechanically minded.
lizardbrain said:
If you have secure cheap rent, then maybe it's not such a simple decision. What's the yeild do you think? If it's under 3% then it's not such a crazy financial idea to rent, assuming you don't have a dick of a landlord and don't mind having no control over long term and DIY.
Whether you have enough money left over after housing costs to spend money on a recreational depreciating asset, should be pretty clear whether you rent or buy.
RENT ? thats giving a sizeable chunk of money FOR NOTHING. And more than often Rent is far higher than mortguage, Seriously. Whether you have enough money left over after housing costs to spend money on a recreational depreciating asset, should be pretty clear whether you rent or buy.
5 years renting a property.... after 5 years... you have nothing.
car... 5 years that car will be worth less that what you bought it for. and every mile/ day on its worth less....
house 5 years on it will have gone up in value.
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