Dilemma House or Car?

[jj]

house: Appreciating asset
Car: Depreciating asset.

Simple, sell the car, even if this is a car forum common sense has to come into the equation

100% agree. I put all car selling/buying/changing chat on hold til I sorted out the gaff, and am glad I did so now, never mind a couple of years down the line.

House much more important.

Completely disagree. All down to personal preferences. I put off getting my first mortgage for a couple of years so that I could have some fun while I'm young enjoying owning a Lotus.

The real cost of doing that is far, far more than just the purchase price of a Lotus. The fact that money is now more expensive than it was 2 years ago and the increase in house prices in that two years are going to be considerable.

Nice cars and all, but not worth not being on the housing ladder for. In my opinion, of course, but I would be amazed if it wasnt the majority opinion.

[r055]

house: Appreciating asset
Car: Depreciating asset.

Simple, sell the car, even if this is a car forum common sense has to come into the equation

100% agree. I put all car selling/buying/changing chat on hold til I sorted out the gaff, and am glad I did so now, never mind a couple of years down the line.

House much more important.

Completely disagree. All down to personal preferences. I put off getting my first mortgage for a couple of years so that I could have some fun while I'm young enjoying owning a Lotus. Have now got to the situation where I can afford both and now buying a flat, but thought I wouldn't be able to afford both til later in life and so didn't want to wait til I was much older before I bought a silly plastic car. Just by delaying my flat buying plans by a year or so, I've had some of the most amazing experiences of my life by buying a Lotus.

The way I look at it is: you could die tomorrow, so while savings and investments are important, they shouldn't outweigh having fun in life. I try to make sure that enjoying life comes first and I knew I'd enjoy life far more owning a Lotus before getting a flat. Yeah, you get a lovely roof over your head and a supposedly great "investment", but you can't have the same fun sitting in your big fancy house strapped for cash compared to being out on the road/track in your Lotus

Never borrow money to buy a car. Never buy a car you can't afford to replace.

I'm sure we'd all love to be that rich Ali, but that's a difficult thing for the majority of the population of this country who probably take a loan or HP to buy cars. Unless you're pretty damn well off, I assume most people have to finance a car in some way. I earn a reasonably good wage, but there's still no way I could afford to save up and buy a car outright when I'm also trying to buy a flat and enjoy the rest of my life with the money needed for everything else.

Your not that young Dezzy! you not a couple of years off 40?

[Rory]

Buy a property and a Playstation.

[Jamie84]

house: Appreciating asset
Car: Depreciating asset.

Simple, sell the car, even if this is a car forum common sense has to come into the equation

100% agree. I put all car selling/buying/changing chat on hold til I sorted out the gaff, and am glad I did so now, never mind a couple of years down the line.

House much more important.

Completely disagree. All down to personal preferences. I put off getting my first mortgage for a couple of years so that I could have some fun while I'm young enjoying owning a Lotus. Have now got to the situation where I can afford both and now buying a flat, but thought I wouldn't be able to afford both til later in life and so didn't want to wait til I was much older before I bought a silly plastic car. Just by delaying my flat buying plans by a year or so, I've had some of the most amazing experiences of my life by buying a Lotus.

The way I look at it is: you could die tomorrow, so while savings and investments are important, they shouldn't outweigh having fun in life. I try to make sure that enjoying life comes first and I knew I'd enjoy life far more owning a Lotus before getting a flat. Yeah, you get a lovely roof over your head and a supposedly great "investment", but you can't have the same fun sitting in your big fancy house strapped for cash compared to being out on the road/track in your Lotus

Never borrow money to buy a car. Never buy a car you can't afford to replace.

I'm sure we'd all love to be that rich Ali, but that's a difficult thing for the majority of the population of this country who probably take a loan or HP to buy cars. Unless you're pretty damn well off, I assume most people have to finance a car in some way. I earn a reasonably good wage, but there's still no way I could afford to save up and buy a car outright when I'm also trying to buy a flat and enjoy the rest of my life with the money needed for everything else.

good point there m8 , I am not looking forward to taking on my second mortgage at all In my birds words I'll have to "drastically change my spending habits". I too believe in enjoying luxuries while your young. I dont currently stay in the property I own and dont intend too but the costs of maintaning the mortgage/bills etc. are quite scary for such a small house.

My old dear reckons I am in for quite a shock next year when I take on another house and move into it .

This is my last year of fun , then its all down hill I believe? house , engagment , marriage , kids........scary stuff.

[Mike Scib]

Buy a smaller house, keep the car.

I have the money in the bank now but with a new house on the horizon this year I feel its best not to commit too much cash on other things.

Buy the house the car can wait, easier said but i have had to do it

[alicrozier]

Never borrow money to buy a car. Never buy a car you can't afford to replace.

I'm sure we'd all love to be that rich Ali, but that's a difficult thing for the majority of the population of this country who probably take a loan or HP to buy cars. Unless you're pretty damn well off, I assume most people have to finance a car in some way. I earn a reasonably good wage, but there's still no way I could afford to save up and buy a car outright when I'm also trying to buy a flat and enjoy the rest of my life with the money needed for everything else.

I didn't mean it to sound like that, just if possible never borrow money on a depreciating asset.
By all means have fun and buy an Elise but you can have just as much fun in a 6K Elise as a 36K Exige (sometimes more)...

[Dominic]

quote="foz01"house: Appreciating asset
Car: Depreciating asset.

Simple, sell the car, even if this is a car forum common sense has to come into the equation /quote

100% agree. I put all car selling/buying/changing chat on hold til I sorted out the gaff, and am glad I did so now, never mind a couple of years down the line.

House much more important.

Completely disagree. All down to personal preferences. I put off getting my first mortgage for a couple of years so that I could have some fun while I'm young enjoying owning a Lotus.

The real cost of doing that is far, far more than just the purchase price of a Lotus. The fact that money is now more expensive than it was 2 years ago and the increase in house prices in that two years are going to be considerable.

Nice cars and all, but not worth not being on the housing ladder for. In my opinion, of course, but I would be amazed if it wasnt the majority opinion.

I'm with JJ on this one. No reason that without some carfull financial planning, you won't be back in a Liz soon enough. Property gains too much value (in previous years) to miss out on. My wee flat I sold last year gained approx £15K per annum in the last two years I had it. That's a difference of 30K in two years... on a wee flat in Maryhill!

Borrowing wise; NEVER re-mortgage to buy a car. Mortgages are the most expensive way to borrow money.

It's all about getting the correct balance. I have had a Liz; enjoyed it, sold it, saved, sold a flat, bought a house and am now saving for a caterham/liz to go in the garage.

IMHO

[RDH]

It's all about getting the correct balance. I have had a Liz; enjoyed it, sold it, saved, sold a flat, bought a house and am now saving for a caterham/liz to go in the garage.

IMHO

Sell the Golf - buy an Elise!

[gorrie]

house: Appreciating asset
Car: Depreciating asset.
Simple, sell the car, even if this is a car forum common sense has to come into the equation

100% agree. I put all car selling/buying/changing chat on hold til I sorted out the gaff, and am glad I did so now, never mind a couple of years down the line.
House much more important.

Completely disagree. All down to personal preferences. ... etc...
The way I look at it is: you could die tomorrow, so while savings and investments are important, they shouldn't outweigh having fun in life. I try to make sure that enjoying life comes first and I knew I'd enjoy life far more owning a Lotus before getting a flat. Yeah, you get a lovely roof over your head and a supposedly great "investment", but you can't have the same fun sitting in your big fancy house strapped for cash compared to being out on the road/track in your Lotus

I agree that it's all down to personal preferences Dezzy. A younger single dude is likely to have no dependants and may not mind taking more of a risk to their financial future. A married bloke with sproggs may be more wary.

It's that kinda 'live for today/could die tomorrow' attitude to saving & investments that may cause people to go belly up when their credit card APRs go sky high due to the global credit crunch. My dad had a similar attitude towards spending money on life insurance... he had enough to cover the mortgage, and that was it, nowt else... waste of money he thought. My mum was a housewife so didn't work. He popped his cloggs at 56, and whilst the roof over my mums head was secure, she had to find work late in her life in order secure some kind of future for herself. So, what I'm saying is that the 'having fun' is all fine and well as long as it's not to the detriment of the people who should have been looked after.

For me, bricks & mortar are a safe investment long term and we all need a place to stay so it makes sense to get your cash in to that.... I also wouldn't want to leave my wife & kids in the sh*t if something happened to me.

Andy.

[tenkfeet]

If you wait a few months you may get more bang for your buck if house prices go down .

I wish I had bought a house 5 years earlier instead I blew all my cash having fun . I could have had as much fun but had a house paid for by now. Do I regret buying bikes , cars and pishing it up ? Not one bit .

[jj]

From January last year......

http://www.scottishelises.com/phpbb/vie ... lit=ladder

Dezzy I think you just reworded your post from page 3

[renmure]

Has to be Mr Sensible time for me too. I would sort out house stuff first. Doing it the other way round is fairly free spirited and adventurous in the short term but not particularly sensible in the long term.

[Jamie84]

Guy in my work bought his house for 27k around 10 years ago , now worth over 200!!! Similar strory with most of my neighbours , wish someone bought me a house when I was 13

I cant possibly see that kind of gain for buyers now , or am I wrong will they continue to grow at such rate ? have heard rumours of a dip next 2 years.

[RDH]

I cant possibly see that kind of gain for buyers now , or am I wrong will they continue to grow at such rate ? have heard rumours of a dip next 2 years.

Don't think they'll grow at that rate, though I don't see any massive crash in prices - I think there is and will continue to be a slow down.
It all very much depends on where you buy.

I was speaking to a partner in DM Hall last week, who says their residential survey turnover has fallen by about 40% in Q1 2008 v Q1 2007. So there's definetly a slow down!

[ryallm]

I cant possibly see that kind of gain for buyers now , or am I wrong will they continue to grow at such rate ? have heard rumours of a dip next 2 years.

Don't think they'll grow at that rate, though I don't see any massive crash in prices - I think there is and will continue to be a slow down.
It all very much depends on where you buy.

I was speaking to a partner in DM Hall last week, who says their residential survey turnover has fallen by about 40% in Q1 2008 v Q1 2007. So there's definetly a slow down!

I have been keeping a close eye on the market in Edinburgh, and there is definitely a slow down, but supply and demand is such that I can't see a major crash, even with the credit squeeze. And in the long term (10 yrs plus) I am sure there will be strong growth. I remember thinking a couple of years ago that one bed flats in first time buyer areas in Edinburgh (Polwarth, Gorgie, Leith etc) couldn't possibly go above 100k, but demand has been so strong that you can't really buy anything now for under 125k

Mark