Buy a M3 or a House or MOVE OUT to an APT?

[dubiousONE]

Here are my questions for all of you. Please give me your honest and humble opinion. I dont care if you think my situation is funny, laugh all you want, but I'm really trying to make the right decision here and want to know what some of yall think.

I am 28 and I live at home with my parents. Not because I cant afford to move out, but because I'm close to my parents and I help with paying for the monthly mortgage on their home. Plus, its SMART when you really think about it. I can save a shit load of money.

I make about 80K a year. Living with my parents has allowed me to save over 100K in my banking account over the years.

My question is.. at my age should I..

BUY A 68K M3 and live at home still at age 28? (I would make monthly payments of $1142 per month)

BUY A HOUSE and not the car? (Pull a $400K loan and make payments of close to $2500 a month)

MOVE OUT and FIND MY OWN APARTMENT and not buy the car? (Rent is about $1400 a month)

DO BOTH, Buy the car and move out? ($1142 + $1400 a month)

Of course I'm trying to think about this in the most logical way.

I want the M3 because its what ive always wanted, but cars depreciate so fast. 68K is a lot of money I can spend doing other things. But I wouldnt want to get any other car. Ill be driving fast and be cool for a year or two, then what?

I want to stay at home because I can save a shit load of money, take care of my parents. But what girl wants to be with a guy who's 28 and still lives with his parents. (Im sure there are some out there like my ex, but I wont get into those details)

I want to move out because its just what I need to do at the age of 28 and buy a home or rent an apartment, live the single bachelor life, but its a waste of money to rent, if I buy I'll always be paying a mortgage until the day I die and my kids (assuming I have some) will take over the payments and the home when I past. So, I'm basically thinking for the future not the present. But life is short (not that short) that I'll always be thinking damn.. I never got a chance to drive a nice car. And, I dont want to drive one at age 78 with my retirement money.

Obviously I'm not sure what I want to do or should do. What is the smart thing to do? Your responses are appreciated!

[808MGuy]

If you really want to stay close to your parents, buy a house close to them so its easy for you to go back and forth if needed. IMO, the choice between buying a house and buying a car is a no brainer. If you can afford buying a house, buy the house. Especially now with the housing market the way it is, houses are getting cheaper by the minute. Eventually, the housing market will come back up and you'll have tons of equity to work with when that happens.

BTW, if you're going to buy a house you have to figure in all the other stuff that comes with it like utility costs, home owners insurance, property taxes, etc.

[masmole]

Considering the the economy, the value of homes, and the amount of foreclosures available to buy, I'd say that if you're in the position to buy a house now, do it!

It's the smart thing to do and you can wait to buy the M3 later.

I just bought a couple of foreclosed condos and renting them out right now for a good deal more than the mortgage payments. If anything, go buy a foreclosure, stay living with your parents, rent out the foreclosure purchase, and if you do it right, you can still afford the M3 on top of all that

[AW_M3]

I say buy the M3 and stay with your parents, give yourlsef another year there then buy a house or Appt. also, if u think this way "Ill be driving fast and be cool for a year or two, then what? " You shouldnt buy the M3 get a cheap car.. thats IF you mean what you said, otherwise, M3 + stay at parents home for a yr is my choice, and u never know what the future got for u

[valeram]

Buy a house. It is a buyer's market now. Buying a house this time is an investment (I Hope). Buying a car will rarely be an investment.

[TLud]

Buy a house, but no need to rush it, especially in CA's real estate market. Be patient, it's a buyer's market, and I think it's only going to keep getting worse for awhile. Like masmole pointed out, look at foreclosures, especially one that may need a little work. Once you've figured out how much you're going to spend on a house, then decide whether or not you can swing the M3 on top. My thought would be no, but you'll probably have plenty of time to get an M in the future.

[eclipsisNA]

As others have mentioned, its a buyer's market right now and buying would be a wise idea. It is all about priorities: do you really want to live the single life, hooking up with different chicks and driving a nice car? Or do you want to prepare for settling down by getting a house now and saving up for that life? I'm 24, and I don't plan on having kids, so I'd probably choose getting the M3 and renting, but that's me.

[dubiousONE]

Originally Posted by AW_M3

u never know what the future got for u

Thats really true, thats why I want to get the M car.. because I could be paying a mortgage payment, which I'll never finish paying by the way even the day I die.. buying a home is a lifetime commitment.. plus, The way I see it is.. buying a home should be a mutual thing between my spouse and me, not just by myself.. I can buy the M car now, and look to buy a home when I truly settle down with an established spouse.. right??

[MomoM3]

Does the rule of thumb continue to be - one should only lease/finance/purchase a car that is less than or equal to half of one's total salary/income?

To the OP - buy a house. Be proud you've saved up your hard-earned money. Don't spend it on a depreciating vehicle. Put your $100k down on a nice house and go lease a G37 or something. By the time your lease is over, you'd have saved enough money to buy your M3...

[milloy8]

Rent a place and buy an M3 in a couple years. Renting isn't always a waste of money if your other option is owning. I wouldn't touch real estate at the moment, all signs point to further pain. Of course the most prudent finanical decision would be to stay at home, but at 28yrs old who wants to do that....

[kronzprinz]

have you seen areas where cadillac escalades or 7 series are parked in the ghetto??? they can't put $10 worth of gas in the car and they have lay-away plans on a $50 pair of shoes... because they didn't want to "wait to drive the nice car with their retirement money"

move out... you're parents may appreciate the monthly help but they will appreciate you more if you move out. buy the house, get a cousin or friend to be your roomy and pay half the mortgage. 80k is not a lot, i doubt any bank will give you the M3 loan with a Mtge. invest the rest...

[dubiousONE]

Originally Posted by Xcellere

hooking up with different chicks and driving a nice car? Or do you want to prepare for settling down by getting a house now and saving up for that life? I'm 24, and I don't plan on having kids, so I'd probably choose getting the M3 and renting, but that's me.

Hooking up would require me to have my own PAD.. not at my parents.. LOL , and I dont know if its in my cards to have kids.. but I do know that when I get married and have kids, I will no longer care what I drive.. priorities will then be shifted to the family....

[Atny286]

Buy the house!

First you got to live, then eat, then drive...

PS: I moved out when I was 17... (different story) If I was still at home I could probably have a nice Ferrari and Porsche GT by now... But I'm glad I moved out and settle with an M3! Which you will eventually after you bought the house (rent is no longer increasing then, salary is...)

[dubiousONE]

Originally Posted by kronzprinz

have you seen areas where cadillac escalades or 7 series are parked in the ghetto??? they can't put $10 worth of gas in the car and they have lay-away plans on a $50 pair of shoes... because they didn't want to "wait to drive the nice car with their retirement money"

move out... you're parents may appreciate the monthly help but they will appreciate you more if you move out. buy the house, get a cousin or friend to be your roomy and pay half the mortgage. 80k is not a lot, i doubt any bank will give you the M3 loan with a Mtge. invest the rest...

LOL, I HAVE seen that.. benzos at trailer parks.. and my parents adores me.. they would hate to see me leave.. but I would hate to tell my GF (should I find one to my liking) " lets go home to my parents house.." She'd be like.. WTF??

[C17MooseDriver]

Who in their right financial mind would choose to buy the M3 over a house and live with your parents? Especially when the market is so low. Remember the phrase, "buy low sell high", unfortunately people don't really do it when it comes to stocks or houses.

28 and living with your parents, cut the cord man! I help my parents with their mortgage, but I don't live with them. 18 years old, then find your own life.

If you're still living at home at 28 by choice, I don't think even an M3 can make you look cool.

[MomoM3]

Originally Posted by dubiousONE

Thats really true, thats why I want to get the M car.. because I could be paying a mortgage payment, which I'll never finish paying by the way even the day I die.. buying a home is a lifetime commitment.. plus, The way I see it is.. buying a home should be a mutual thing between my spouse and me, not just by myself.. I can buy the M car now, and look to buy a home when I truly settle down with an established spouse.. right??

Omg, no this is all wrong. You're 28 so you'll pay off your house at 58 or less if you make more than 12 payments/year. The tax benefits are also something you'd be missing out on if you don't own a home. Dude, plan for the future, not for the present. If you fail to plan, then you plan to fail.

Forget the mutual decision & spouse crap. Buy something for your future, not for a future spouse you don't even have yet. You're making excuses for a dumb car - you know you're smarter than that, please don't use this post as an attempt to convince yourself buying a car is the better choice. You need assets in this economic climate, not expenses that will never appreciate.

[dubiousONE]

Originally Posted by MosesDKE

Does the rule of thumb continue to be - one should only lease/finance/purchase a car that is less than or equal to half of one's total salary/income?

To the OP - buy a house. Be proud you've saved up your hard-earned money. Don't spend it on a depreciating vehicle. Put your $100k down on a nice house and go lease a G37 or something. By the time your lease is over, you'd have saved enough money to buy your M3...

Well, at 0.9% on the M3.. I wouldnt have to tap into my savings. Over 5 years however, I would have saved even MORE.. if I didnt have a $1142 monthly M3 payment.. BUT, Probably harder for me to get a mortgage loan since I have a car loan outstanding..

[nullspace]

If it's important to you that you own a house, by all means consider buying. However, for as long as we've been keeping records, houses have been bad long term investments. If you sell in a high market, of course you'll make money. But long term, housing values don't beat inflation.

Again, I'm not saying that means a house isn't worth it. But do your research. Compare the average increase in housing value over the long term with the increase in an investment. Factor in the extra costs associate with a house: taxes, maintenance, mortgage interest (it's deductible, but only from your income tax, so you generally only get about 30% back), HOA fees (if any), etc.

It's a myth that houses are always a great investment, and I don't say that just because the housing market is down right now. Of course it will recover, as will the stock market. Unless you plan on selling the house soon, ignore these short term trends and look at the long term data.

[TwistaStick]

My first thought was 28 and still living at home!!!!!! It's cool that you have a good relationship with your parents, but that is no excuse to continue living with your parents. Are you Asian by the way? Seems like a lot of Asian kids don't mind living with their parents or have their parents move in with kids. But seriously, there comes a time when a person must grow up on his own, and you are starting this journey a bit late. The smart thing to do is buy yourself a house and start building equity. Getting an apartment is throwing money out of the window. Don't just think of the here and now. Impulse buying is what will get you into trouble. If you ever plan on getting married it would be a good idea not to be living with your parents . Once you do get married then you might have the option of purchasing a car together, which will lessen the burden you forking over all of the money. But then again if you are Asian then the male is supposed to be the provider...... Anyways, buying an expensive car is never a good investment. Why would you be making $1000+ payments on a car when you have $100,000 in savings?

[C17MooseDriver]

A car is the only asset you have that you can guarantee will depreciate.

An M3 is a luxury, not a necessity.

[schadenfreude]

Originally Posted by dubiousONE

Hooking up would require me to have my own PAD.. not at my parents.. LOL , and I dont know if its in my cards to have kids.. but I do know that when I get married and have kids, I will no longer care what I drive.. priorities will then be shifted to the family....

Rent and get the car. Wait a year before you buy a house. Things are dropping FAST, but they aren't going to climb anywhere near as quickly.

[E. Honda]

Get the M3 and continue to live with your parents. There is nothing wrong with that. Don't have to worry about making payments for your house, etc. However, if you parents want you out, and there's a chance that htey might kick you out, then I'd suggest to move out.