House v Car Dilemma!
Discussion
I've been looking for a plot of land for 2 years now and am getting sick of renting. So I have decided to buy and put building on the back burner for a few yeas.
If I buy where I am now (very nice part of Poole) then I need to spend large amount on a detached house and I'll have money left for one nice car (SLK/M3 or similar).
However, a move to an area nearby that's not so good but is still nice, would allow me to buy a nice detached with a large double garage where I could have an R8 Spyder and a nice daily driver (RR Sport) as well.
What would you do?
I know it's location,location,location .... but not being beholden to the house and having money to follow a raft of social pursuits is a very attractive proposition!
If I buy where I am now (very nice part of Poole) then I need to spend large amount on a detached house and I'll have money left for one nice car (SLK/M3 or similar).
However, a move to an area nearby that's not so good but is still nice, would allow me to buy a nice detached with a large double garage where I could have an R8 Spyder and a nice daily driver (RR Sport) as well.
What would you do?
I know it's location,location,location .... but not being beholden to the house and having money to follow a raft of social pursuits is a very attractive proposition!
Financially it's going to be better to invest in an asset that will at least retain most of its value and may well, in due course, appreciate than in a couple of cars whose value will depreciate to near nothing in ten years.
That said in these times houses are not appreciating as they once were: it used to be the advice that as a youngster you should mortgage yourself until it hurt to take advantage of bricks and mortar appreciation - personally I think those times are past.
I'd take a middle ground. Don't overstretch yourself to the point where times are hard. But don't blow your loot on lots of plummeting-in-value metal, either.
The depreciating metal is an awful lot of fun, mind, but it does mean you give Audi and Landrover all your money...
That said in these times houses are not appreciating as they once were: it used to be the advice that as a youngster you should mortgage yourself until it hurt to take advantage of bricks and mortar appreciation - personally I think those times are past.
I'd take a middle ground. Don't overstretch yourself to the point where times are hard. But don't blow your loot on lots of plummeting-in-value metal, either.
The depreciating metal is an awful lot of fun, mind, but it does mean you give Audi and Landrover all your money...
Don said:
Financially it's going to be better to invest in an asset that will at least retain most of its value and may well, in due course, appreciate than in a couple of cars whose value will depreciate to near nothing in ten years.
That said in these times houses are not appreciating as they once were: it used to be the advice that as a youngster you should mortgage yourself until it hurt to take advantage of bricks and mortar appreciation - personally I think those times are past.
I'd take a middle ground. Don't overstretch yourself to the point where times are hard. But don't blow your loot on lots of plummeting-in-value metal, either.
The depreciating metal is an awful lot of fun, mind, but it does mean you give Audi and Landrover all your money...
As a young 47 year old I'm getting to that stage in life where I need to start having more fun. I've worked hard all my life, had the big houses in the posh areas, but just want to live a little. Have no wife, no kids, small dog... so it's very tempting!!!That said in these times houses are not appreciating as they once were: it used to be the advice that as a youngster you should mortgage yourself until it hurt to take advantage of bricks and mortar appreciation - personally I think those times are past.
I'd take a middle ground. Don't overstretch yourself to the point where times are hard. But don't blow your loot on lots of plummeting-in-value metal, either.
The depreciating metal is an awful lot of fun, mind, but it does mean you give Audi and Landrover all your money...
garyhun said:
pilchardthecat said:
This is the worst possible time to buy land or property. Wait 2 years and buy at least 20-30% below current prices.
Don't keep all you liquidity in sterling though, spread it about a bit.
Mmm.... it's all in £££££ at present. Any suggestions?Don't keep all you liquidity in sterling though, spread it about a bit.
I'd probably keep a third in sterling, a third split between USD, Yen, Euros, gold and maybe something left field like Norwegian Krone, and a third in equities. You might not make a fortune but the value of these things are all relative to each other. I'm no expert though so don't take my advice! /disclaimer
Sadly i don't have this dilemma as i have a mortgage. It sounds like you have a big enough pot for it to be worth some professional investment advice?
If I was you I would continue to rent, it's what I would be doing if I could sell my current house. I don't think now is the right time to buy; just hang on, enjoy your disposable income and keep looking for that plot of land.
If you need a bit of extra cash, rent in a cheaper area, I have an idea where you are at the moment and don't think it's value for money in the slightest; you're paying a massive premium for a post-code!
If you need a bit of extra cash, rent in a cheaper area, I have an idea where you are at the moment and don't think it's value for money in the slightest; you're paying a massive premium for a post-code!
I'm in a similar-ish situtaion, although with a LOT less money!
Currently have an Audi S4 (not worth too much) a boat (worth a lot!) and a small house which we rent from family for next to nothing each month. This allows me to spend a bit and save a lot (sometimes the other way round too!)
We have the boat up for sale and have had a good offer already with the intention of buying a house, but everyone keeps telling us not too. With that in mind I'm really tempted to blow my half of the boat money on an Audi RS4 or RS6, or even a TVR T350 or similar! The only problem with that is I have no drive or garage so it would mean having to park it in the cul-de-sac we live on.
So far my dad is the only person who is trying to get me to buy a house! Everyone else is trying to put me off.
Currently have an Audi S4 (not worth too much) a boat (worth a lot!) and a small house which we rent from family for next to nothing each month. This allows me to spend a bit and save a lot (sometimes the other way round too!)
We have the boat up for sale and have had a good offer already with the intention of buying a house, but everyone keeps telling us not too. With that in mind I'm really tempted to blow my half of the boat money on an Audi RS4 or RS6, or even a TVR T350 or similar! The only problem with that is I have no drive or garage so it would mean having to park it in the cul-de-sac we live on.
So far my dad is the only person who is trying to get me to buy a house! Everyone else is trying to put me off.
matc said:
If I was you I would continue to rent, it's what I would be doing if I could sell my current house. I don't think now is the right time to buy; just hang on, enjoy your disposable income and keep looking for that plot of land.
If you need a bit of extra cash, rent in a cheaper area, I have an idea where you are at the moment and don't think it's value for money in the slightest; you're paying a massive premium for a post-code!
Exactly. BH14 snobbery and Sandbanks ripple has massively inflated prices!!! Luckily my rent is cheap for the area as I have a wonderful landlady!If you need a bit of extra cash, rent in a cheaper area, I have an idea where you are at the moment and don't think it's value for money in the slightest; you're paying a massive premium for a post-code!
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