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      10-16-2008, 01:05 PM   #23
C17MooseDriver
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Originally Posted by E. Honda View Post
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.
That is the worst advice. There is something wrong with that. Making house payments is so you have equity and an asset that hopefully will appreciate over time.

Business before pleasure.
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      10-16-2008, 01:07 PM   #24
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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.
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      10-16-2008, 01:07 PM   #25
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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?
To answer your 1st question, I AM ASIAN lol.. Asians like to milk it and live at home to save money.. Which I have done VERY SUCCESSFULLY lol, has it been good for my social life? Ehh.. no impact while I was with my last girlfriend.. we broke up on MY terms not hers.. thats besides the point.. But when I get married, yes I will be the provider..

To answer your second question, Why would I pay CASH for a 0.9% financing car, when I could make a monthly payment and keep the majority of the money in the bank collecting 4.3% in interest returns.. Paying cash for anything 0.9% and under is not a smart move, you lose money that way...
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      10-16-2008, 01:07 PM   #26
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Since house price will continue to fall for at least another year but most likely two, I would buy the M3 and enjoy life for now.
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      10-16-2008, 01:09 PM   #27
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Originally Posted by C17MooseDriver View Post
That is the worst advice. There is something wrong with that. Making house payments is so you have equity and an asset that hopefully will appreciate over time.

Business before pleasure.
The OP is saving money by living with his parents at what is most likely a far greater rate than a house would appreciate after factoring in additional costs. Of course there are other reasons to move away from home, but I don't think a purely financial argument stands up.
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      10-16-2008, 01:10 PM   #28
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The OP is saving money by living with his parents at what is most likely a far greater rate than a house would appreciate after factoring in additional costs.
I would agree with this statement!

Last edited by dubiousONE; 10-16-2008 at 01:27 PM.
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      10-16-2008, 01:20 PM   #29
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The OP is saving money by living with his parents at what is most likely a far greater rate than a house would appreciate after factoring in additional costs. Of course there are other reasons to move away from home, but I don't think a purely financial argument stands up.
Living with your parents at 28 is pretty pathetic. Whether it's a good financial move or not, you should cut the cord. The only reason I can understand is if you've moved out and suffered financial hardship and had to move back in. Otherwise grow up and be a man!
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      10-16-2008, 01:27 PM   #30
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It depends on where you live and the housing market. I rent an apt from my parents but it's connected to their house. Not really where I want to be it's a little to close to them, even though we get a long great. My problem is that even if I didn't buy a M3 and saved my money I still wouldn't even come close to buying a house here. Even with the downturn of the economy and house prices dropping they are still so far out of my range that if I didn't buy my car I'd still be living where I am now until something happens and I make lots more money.
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      10-16-2008, 01:31 PM   #31
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Quote:
Originally Posted by C17MooseDriver View Post
Living with your parents at 28 is pretty pathetic. Whether it's a good financial move or not, you should cut the cord. The only reason I can understand is if you've moved out and suffered financial hardship and had to move back in. Otherwise grow up and be a man!
I was going to say "THIS" but at 20 I bought me a shiny new 530 and I lived at home. However, at 28 I gotta question his priorities. If you aren't seriously dating someone already you will have a hard time finding someone who is into 28 year olds living with their parents (aka George Costanza)
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      10-16-2008, 01:38 PM   #32
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Quote:
Originally Posted by C17MooseDriver View Post
That is the worst advice. There is something wrong with that. Making house payments is so you have equity and an asset that hopefully will appreciate over time.

Business before pleasure.
+1

Wow... amazing some of the advise being thrown about. DubiousOne... dream big, but be smart. Go back an re-read both of MosesDKE posts... it's good advise.

Time to be out on your own, live life (which doesn't mean you can't continue to be close to your parents). It's more than just the toys (which we all love) see the big picture. You've saved a good amount. It's a GREAT market to buy in most areas of the country. Renting is throwing your money out the window. Get "set up", stable on your own, the car will come. You wouldn't be saying no to the M3 decision just delaying it or prioritizing it.

Good luck.
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      10-16-2008, 01:40 PM   #33
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I think everyone else has covered the reasons to buy a home over renting. So I'll skip that. I'm just damn impressed you've saved up that amount of money. So my feeling is, why stop now? There's always a balance between living for the moment and planning for the future. But, you have a lot of future left, and are on a great trajectory. I'd wait on the car until you've saved enough that you can pay cash, and have many 100k's left over for retirement or loss of job. Five years goes by pretty quick. In the mean time there are cars you could lease that are 1/2 the cost of the M3 that are pretty mean themselves.
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      10-16-2008, 01:48 PM   #34
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Do both...timing is everything

The housing market will not tick upwards until late next year when the drunken economy stablizes. If you have the cash for the car and can still save during the next 12 to 14 months....finance the car.

Tuck away that cash into a 4% CD for one year and don't touch it. Tuck away a little extra for the home and buy a home when the market hits the bottom....next year. You don't want to sink 400K in a home right now and find that its true value (not inflated value) is only 330K. Just my honest opinion. If the M will bring you joy and you can still tuck away the cash for a home and car....get the car now for 0.9%. This, IMHO, is a win/win.
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      10-16-2008, 01:51 PM   #35
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BTW dude....I'm guessing you like the M because it brings "attention" to you....increasing your chances with the ladies. I gotta tell you....I don't know many ladies that enjoy doing the nasty in mom's basement. If that is your case, the M might be a wasted investment.
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      10-16-2008, 01:54 PM   #36
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What?

Quote:
Originally Posted by nullspace View Post
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.
Sure there are other investment opportunities that may have a greater return, but let's use DubiousOne's comparisons...

New House v. M3 (hand's down house is the better investment).
New House v. Apt. Rental (again... house).

Provided Dub can afford a house, is stable enough financially to keep it, then he can capitalize on an opportunity now with the market the way it is. You do a good job of adding in the "extra costs" but there are also benefits; privacy, transition into adulthood (hopefully 28 at home doesn't turn into 38 and home), independence, etc. IMHO, he needs to look at it comprehensively, the big picture.

If like another poster said, he's in a market where he simply can't afford a house and is renting an adjacent apt or basement, that may be necessary and a means to build up the capital to ultimately go out on your own. But if you're staying "home" because it's a great cushion, so you can hang (Mom makes dinner) and get all the toys you want, I'm not sure that's really forward thinking.

But, ultimately, to each his own...

Last edited by ColoCane; 10-16-2008 at 01:57 PM. Reason: typo
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      10-16-2008, 01:56 PM   #37
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The house dude. C'mon now. Don't be one of those cats that drives a sick ass car and has nothing else to show for it. Youre young. With continued hard work, you'll have the car of your dreams in time.
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      10-16-2008, 02:00 PM   #38
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making 80k a year you can get a nice mid upscale apartment and get an new 08 m3 for a good deal =P
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      10-16-2008, 02:02 PM   #39
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Hmmm, I believe after you have considered all the options,
Buying a house would be a smarter idea. But then again you'll be payig for it for many many years. If you have done some thinking about it. As you mentioned you have 100K + saved up rightnow. The M3 is 68k, why not put 40 000K downpaiment on the M3, which will decrease your monthly payments by a bigshot. put the other 60k down for a house, the 40k over 25 yrs will not make a whole lot of difference maybe some odd 200-400$ per month more. While you have the M3 and a House at some what affordable rate.
Thats my opinion, either way you'll be paying for the house once you have bought out the M3. Then you can always increase ur monthly payments for the house to shorten the term that you are on.
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      10-16-2008, 02:08 PM   #40
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Although the M3 is amazing, owning your own house will give you more satisfaction that the M ever will. Its the first major step any 28 yr old needs to take.
Once you get the house, you will be posting "new kitchen or M3" and you'll do the kitchen because its a smart investment, then "finish the basement or M3" and you'll do the basement for the same reason, it goes on forever.

When you finally get to "get married or buy the M3" then you can buy the M3.

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      10-16-2008, 02:13 PM   #41
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Live with your folks...by the M3.

albiet home prices are low, real estate is still dropping and will continue to do so.
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      10-16-2008, 02:14 PM   #42
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or if you get the house and you need extra funds there's always prostitution...
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      10-16-2008, 02:18 PM   #43
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When you finally get to "get married or buy the M3" then you can buy the M3.



There's some experience speaking there!!!
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      10-16-2008, 02:19 PM   #44
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the housing market has a typical 10 yr span before a correction of some sort. At current prices, you are better off investing your money into a home or property of some type and reap the benefits a decade down the line. The equity you will build in this time frame along with appreciation of your real estate will more than make up for the price of a M3 over time. This would be the "smart" thing to do...many would follow their emotions and choose to go the route of satisfying their immediate urge for a new toy. Depends what your priorities are.
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