Buy NSX, live with rents, or buy house, drive beater

[Pacemaker Kid89]

After being around the forums for a while, I think that (with my EDUCATION) and KNOWLAGE) The house would be a better investment. Purchase a cheaper house with a nicepeice of land, look for an architect, deisgn the hopuse, build it, and boom...you have a new house that you could A. Live in or B. Sell and make some money, but a nice house and buy your self an NSX if you want. Maybe you will change your mind on what you want to buy as your "Toy".

I hope this isnt going to turn into another Flame the Kid post again...lol

 

[DV8]

A lot of useful advice here. Now let me offer a different take...

I was living with my sister for only $300/month for two years but was getting a little agitated after a while because she was very meticulous about her house/posessions which I found a little hard to swallow at times knowing I'm actually one of the most curteous and respectful people. (at least IMO :wink: ) Anyways, I had a plan on getting an NSX once my credit cards (which I acumulated due to very bad business/friends decisions) were paid off. Long story short, my sponsor, who is a real estate broker, got me to buy a house when I was close to paying off my credit cards. So my plans for the NSX took an abrupt halt. No where was I ready to buy a house, and let me tell you this - everything looks a lot better on paper - trust me! The first year was a real struggle as my income was not particularly high and with the rising cost of fuel, my energy bill was extremely painful in the winter. There are so many factors that go into owning a home that you don't really know until you have one.

After living alone for a year I wised up and found a roommate to ease a bit of the financial burden. Now, with my roommate's rent and increased salary I am no longer struggling and am currently looking for my first NSX (I've never been so excited!!).

So my advice to you is: go purchase a house and rent out the other rooms to either friends or put an ad in the newspaper (but be sure to take all the necessary precautions, run background/credit checks and MAKE SURE to call their previous landlord. Also don't forget about a well written lease!). If you can stand living with other people, this is a very good way to save up money with all the benefits of home ownership. It took me a year of paying the mortgage myself to come to this decision. To me the benefits outweigh the luxury of being able to live by yourself. For instance, you have someone, or if you're lucky, some people helping you pay down your mortgage and also, as lifthard stated, don't forget about the tax savings as this is an ideal way to increase your itemized deductions - hence more money back or less money to pay to Uncle Sam. And for me, the biggest benefit of home ownership is being able to watch my movies in full-blast surround sound with no complaining neighbors! :biggrin:

 

[surferX]

You definitely have to decide what works best for your situation. I'll tell you a little about my decision process. I was looking at buying a condo in San Diego, a vacation home in Hawaii with some buddies, or an NSX. I also was planning to go back to school...law school. I've been working full time since college as an engineer (now in an developmental program for management)and make enough money to be more than comfortable where I live. If I had bought the condo I was looking at I would have made over $150K to date...however...I never really dreamed of owning a condo. If I had bought the Hawaii vacation condo, I would have made about the same split between three buddies, but the down payment and other payments would have been reduced...plus we were planning on renting it out...so that would have made decreased those costs even more. However, in the end my buddies got flaky, I wanted to go to law school and have freedom, more than own a $375K condo (now "worth" $525K) or hastle with the condo thing with my buddies...they just never seemed to get that serious. Sooo my ex-girlfriend told me to shut up and go drive an NSX...I did...and bought mine three weeks later. I haven't ever regretted it. I bought a 1999 NSX-T when I was 25 years old. Put some money down financed the rest. My other money is invested in both public and private stocks. :biggrin: I was going to buy a new car either way so I decided to buy my dream car rather than something like a 350Z, G35 or Vette(if I bought any of those I would definitely still long for an NSX) and kept my truck to drive to work and haul my surfboards to the beach. You could definitly use some of your money as a down payment on an earlier model year to decrease the monthly cost. But an NSX is not inexpensive to own...clutches, tires, mods (very addicting), and normal service all cost more than most daily drivers...so keep that in mind. Now...after always wanting to go to law school...I'm going to to to UCLA or USC for my MBA (my company will pay for that but not a law degree). I haven't decide which yet but it will definitely be one of those. If you go to a great school (top 10 like Wharton) or one with a strong alumni network, the MBA is hands down the way to go. YOU WILL MAKE $$$$ WHEN YOU ARE DONE. Consulting, investment banking, venture capital...they all hire from those schools. Lower tier...it may not be worth the money. But colleges have great loan programs and most of the top tier schools cost much more than $25K to go to...especially with the opportunity cost of the money lost by not working...if you go to a full time program. I wish you the best and good luck with whatever decision you all make. I know I wouldn't change a thing about mine!

Also remember that an NSX is a 2 seat sports car. If you look at most 2 seat cars, they are usually driven by single people or older "mid-life crisis" people...he he...flame away...who don't have children or whose children are out of the house. A lot of them are sold by people that owned them, loved them, and had to part ways because it's a bit impractical with children...unless you've got enough $$$ for that not to matter. Anyhow, you may want to take that into consideration because I know having kids costs a lot more than my NSX does. :smile:

Last thing I swear...if you buy an older NSX...odds are that it's not going to depreciate too much with only 9000 sold in the US and no more in production. Not that means you should even think you will break even...due to cost of ownership...but just means you could probably sell it...down the road...and you won't lose you ass like you could with a 20% market correction on a $500K condo!

Good luck! Some buy me a drink so I'll shut up (Bridgewater...ha ha...my head still hurts from NSXPO)!!! :tongue:

 

[RON98]

quit school. those degrees arnt worth the paper they are printed on now. Y?

Everyone has one. Master/PhD is a decade ago's BA degree. BA degree now is like the high school degree.

Quit while your ahead and get 4-5 years of working expereince under your belt before the rest of them get out of university with a 40-60K student loan. You'll be making 20K more when they come out of university.

Start your own business. 10% sucess rate is pretty damn good.

 

[95EagleAWD]

I'd get the NSX and snap up a small apartment... especially because you're single. Cars are my thing, not real estate, and so I have no problems living in a smaller apartment/condo and having a nice car. I'm in the exact same boat as the original poster. 22, single, working two jobs (one full time, benefits, good salary, the whole nine yards and I'm a reservist) and generally enjoying life.

Buy what makes you happy. I'm trying to get my head around the NSX finances here. But I'll live in a smaller apartment if it means I can have a black NSX in the parking lot.

 

[The Kid]

Good luck! Some buy me a drink so I'll shut up (Bridgewater...ha ha...my head still hurts from NSXPO)!!! :tongue:

Art,
when your in NY/NJ; I expect a PM or Phone call to show you have the Northeast gets down :biggrin: Did someone say Red Bull and Vodka? I had a 11 hour flight delay; so after a 4 day drinking binge-I had to get smashed yet again in the airport.

On the topic at hand; if it was me Id buy the house first. All my friends are also pretty successful and were buying sick rides when we were in our early 20's. I stayed "sane" with my talon turbo awd and bought my first condo when I was 23. Now Im 26 and closing on my 3rd place in a couple weeks. Real estate is your best investment. I use equity from one house to buy another, and so on and so forth.

 

[Bart Geerts]

Did someone say Red Bull and Vodka?

Hey what do I read here? When I was in the states a couple years ago and asked for a Vodka-Red Bull, they looked at me very weird: "what kind of a mix is that?" they asked. I'm glad that this mix finally got settled. Now get more bars where they serve Belgian beers and at lower prices : Stella, Jupiler, Hoegaerden, Kriek, Leffe, ... :biggrin: :biggrin: :biggrin:

 

[Jett]

Wow, there is really a lot of great advice on here.

Here is my opinion...go for the education if you REALLY think you can make more money after you finish your MBA. If it will just be another piece of paper, don't bother. I also think you could do well if you learn how to trade the stock market. Notice that I said learn how to do it. Not jump in the deep end before you learn how to swim.

If you buy the NSX first, you will get mod fever or get on the speed crack pipe and won't leave home for years. So get your own place to live before you buy an NSX. If you are 25, it is time to move out, either away to college or into your own place. You want to be living at home when you are 30? What are you gonna do if you want to have a girl over? A guy your age needs his own place. If not for your own sake, then maybe your parents deserve a break.

If you don't go for the MBA, don't buy a house, or even a townhouse. It would be more expensive, more property taxes, too much upkeep, and would exceed your needs. Buy a condo, one with a parking garage or some other form of covered parking. A two-bedroom condo would be ideal; then if you wanted to have a roommate, you would have the extra bedroom.

But don't stop there...with the money you have saved by not buying a house that is too large for your needs, you should have relatively more money available to get an NSX. With your current income, I don't see why you can't have both. So while you are settling into the condo, keep sniffing around on the internet for a lead on a good quality used NSX. You don't have to have two cars. Two cars is not twice as good as one car. It's only about ten percent better than having one, but twice the insurance and maintenance. An NSX makes a perfectly servicable daily driver. Even in Philly you should be able to struggle through the winter with only the NSX. When it snows find alternative transportation for those few days when it is just too nasty to drive the NSX. Take a taxi for a few days or the bus if you choose a place where there is bus service. Try and find your best deal on a good quality used NSX, then sell your existing car on Ebay or through the classified ads. Don't trade your existing car to a dealer, when you trade you are essentially giving them your trade-in. Buy an NSX through a private party (see the NSX for sale ads on this website) as you stand a better chance of getting a more favorable price.

If you choose carefully and well I don't see why you can't have both. I am not advocating getting into debt over your head, I am advocating a carefully thought-out, meticulously calculated plan. Don't ask yourself, can I afford it? That question closes the mind. ("I can't afford it." When you say that, you stop thinking.) Ask yourself, how can I afford it? That question opens the mind. If you open your mind to how you will soon see how. We find what we look for, if we look.

Recommended Reading: Get a copy of the book "Rich Dad, Poor Dad" by Robert Kiyosaki.

 

[goldNSX]

indeed, a lot of people buying or building a property at a younger age say later that they bought to soon, because at that age they were too much limited by a budget. So everything is just a little to small. to small a garage, too small a bathroom,...
...

..., too small bedroom,...
In fact I reversed the order to: education, car, house where I didn't got the last one yet because of the silly high prices here in Switzerland even for a flat. You can buy 4-5 NSX's for the same price as for a flat with 4 rooms. For a house you can buy 10 of them.

 

[NsXMas]

Housing prices are at an all time high right now.

The NSX has just been discontinued.

Buy the NSX now. It's value is probably going to stay stable, it'll be the cheapest car you'll own (in terms of depreciation).

By a house in a few years when prices normalize.

I usually advocate the opposite - buy a house now and save for later. But with the extraordinary events of late, I'd say go for it and buy a car!!!

Enjoy.

 

[nsxscool]

I say 25000 isn't going to buy a house, so buy a car, save some more ,meet a professional woman who makes money (your car will impress her) then the (dink )system will kick in (double income no kids) then you can have your car your woman and both of you buy a house and live happily ever after! If you have to she will make you sell the car (probably hold it's value) and at least end up with a chick a house and fond memories of a nsx which is more than most people get.good luck

 

[RON98]

get the car.

Once you get married, your wife will want you left nut before she will aggree for you to get a babe magnet like that. Women, all insecure and would not want you running off.

Anyways, get them while your young

 

[rickysals]

wow

seems alot of the NSXers here are real estate savvy.

in a couple years i'm gonna "hang around" NSXPO with a big tab and get some good advice

I'm 21... and it's so hard to drive a beater... but "you gotta do what you gotta do". Noway would I buy an NSX if I llived with my parents. These guys know what they are talking about... I have no real advice to give, as I'm a young'in around here.

good luck... and remember, NSX's will be around for a while. There won't be any meteor to wipe them all out. You can get one later.

 

[ediddynsx]

buy the nsx who needs a home? homes are overrated :tongue: lol

 

[travanx]

very helpful thread. i just started a new job after working for 2.5 years after i got my B.S. in Engineering (Land Design to be more exact). My new job along with overtime is putting me close to the $100k range, but I am 26 and still live at home. I have been thinking of getting a higher mileage older nsx now because I keep thinking when I do buy a place soon, I won't have money, then if I end up marrying my GF, I really won't have money, and then kids, really no more money. But I still think you guys are right, if I save up to buy a place sooner than later money later on should hopefully be not a big problem. Its just hard to figure out the right time to buy in this stupid overpriced Socal market. I saw suck ass houses in Compton for $300k+. You must be kidding me.

As for an MBA. My friend is in between working after graduating and eventually going to get his MBA. He told me the pay structure for his work. Right now he is around $70-80k plus a 30+k bonus at the end of the year. He said when he gets his MBA it puts him closer to $200k. We are both 26 and that seems pretty good for someone under 30. Of course he works his butt off too. But his plan for possible retirement at 40 seems possible. So, if you like what you are doing and like what an MBA can do to your career, go for it!!!!

So for those who bought property, were you guys stretched money wise, or was it mostly all before the pricing boom? I feel like if I can't afford an NSX now, will I ever get to own one? This car is one of the reasons I went to college to become an engineer (started as Mechanical and ended as Civil).

 

[gtr]

But I still think you guys are right, if I save up to buy a place sooner than later money later on should hopefully be not a big problem.

Just make sure your future wife agrees with the idea :wink:.

 

[95EagleAWD]

Just make sure your future wife agrees with the idea :wink:.

I wouldn't leave any "future" wife with the choice. She'd understand my passion for cars (and I would understand any of hers) or she'd be gone. Plain and simple.

 

[Arlorey]

Real estate appreciates in value, a car depreciates. Don't wait to buy your home, buy it now and then wait! You can always get the NSX later. Even in a market that seems to be in a bubble, this investment should be long term. Just make sure you are comfortable with the payments.

My 2 cents,
-Arlorey

 

[azndng]

"Dream like you'll live forever...
Live like you'll die tomorrow."

There's nothing worse than living at home...the fact that you live with your parents is a HUGE problem. You should at least be renting an apartment. I can't think of too many things that are more lame than having a sweet car and living at home. If you're making $50k a year, it's time to leave the nest.

not to be stereotyping, but i think the topic starter is chinese. (chen127) please correct me if i'm wrong.

the reason i quoted DrVolkl; because it is NOT UNcommon to see 20-30 year old asians living at home with their parents. speaking for vietnamese and chinese (and i know of koreans and cambodians), we usually don't leave the house till we're married. and even then, some very traditional families even live in one big house together. but as of late, a lot of the generations that were born here are slowly and surely being more americanized and moving out to be on their own.

back to subject. i live in New Jersey, but my family has property in Philadelphia. the market in philadelphia isn't as high as it use to be...just don't go on the major streets and you'll save AT LEAST 100k on a house. outside philadelphia in west chester there are plenty of new constructions going on. reasonable offers too, all things considering. this is just information if you want to buy a house first.

but IMO, i'd buy the nsx. $25k shouldn't be too much of a scretch if you've been living at home rent free on a $40k+ salary.

 

[stephenti]

"Not UNcommon" for a 20~30 yr old Asian to be living at home w/ their parents?!?! If that's the truth, then that is pathetic... who are these people?! What kind of generalization is this?!

I'm Asian, and have a lot of Asian friends... there is not one of my close friends that lives at home... we've all got jobs, homes, cars, etc... in other words, we're responsible adults. Even looking at most of my acquaintences, they are independent. For someone to buy an NSX while still living at "home" is just irresponsible... and to recommend that option is simply terrible advice. To live with your mama and papa and drive an NSX is really ass backwards... get your sh*t together, and go buy a home first.

Homes are an investment if done right... make enough smart buys in homes, and you'll be buying any car you want.

Cars are a liability for the most part... spend enough on car-related purchases, and you'll be homeless... unless you don't mind living at home as a 20~30 yr old... lol.

Stephen
1stephen1.com

 

[redshift]

quit school. those degrees arnt worth the paper they are printed on now. Y?

Everyone has one. Master/PhD is a decade ago's BA degree. BA degree now is like the high school degree.

Quit while your ahead and get 4-5 years of working expereince under your belt before the rest of them get out of university with a 40-60K student loan. You'll be making 20K more when they come out of university.

Start your own business. 10% sucess rate is pretty damn good.

Are you serious?

I do agree somewhat (BA being yesterdays HighSchoolDiploma), but there are MANY professions that you can't get in the door without a specialized degree. If my only interest was to make money then MAYBE I could have done okay without college. For now I have a BSE in Computer Engineering and I could not have gotten into the job I am in without it... it just isn't possible in this day and age. I'm going back soon for my MS in Comp Science and someday in the not-so-distant future for my PhD. Those pieces of paper will open doors that would otherwise be closed.

Just my 2 cents...

If you we're just kidding, then please disregard the above comments. :biggrin:

 

[azndng]

"Not UNcommon" for a 20~30 yr old Asian to be living at home w/ their parents?!?! If that's the truth, then that is pathetic... who are these people?! What kind of generalization is this?!

I'm Asian, and have a lot of Asian friends... there is not one of my close friends that lives at home... we've all got jobs, homes, cars, etc... in other words, we're responsible adults. Even looking at most of my acquaintences, they are independent. For someone to buy an NSX while still living at "home" is just irresponsible... and to recommend that option is simply terrible advice. To live with your mama and papa and drive an NSX is really ass backwards... get your sh*t together, and go buy a home first.

Homes are an investment if done right... make enough smart buys in homes, and you'll be buying any car you want.

Cars are a liability for the most part... spend enough on car-related purchases, and you'll be homeless... unless you don't mind living at home as a 20~30 yr old... lol.

Stephen
1stephen1.com

it says that you're from hollywood, west coast. but i will tell you, a MAJORITY of asians over the northeast/east coast live with their parents. do they have jobs? yes. do they have high paying careers? yes. do they have nice cars? yes. and can the afford a house? yes, but they are traditional. i didn't say 100% of asian's this day and age live at home with their parents. i'm just saying its not uncommon; speaking for vietnamese and chinese. (which i'm vietnamese). and your statement seems like you are attacking my comment. which if you were asian, you would know that its a simple fact that asians rarely move out, (the traditional ones---not the americanized ones that know english, and only "some" of their own language---)

for personal facts. i have two cousins. one lives in suburbs of pennsylvania. rarely any asian friends, english is prime language. graduated a few years ago. he just moved out of his parents over sized house. makes good money, engaged, and is 25 years old. then i have my other cousin that lives in urban area of south jersey, mainly asian friends, vietnamese prime language, just got married, didn't go to college but owns her own business and does well, 28 years old, just had a daughter 2 months ago, and lives at home with her mom, husband and daughter.

i didn't lose respect for my cousin that lives at home, but rather, i respected her even more because she is keeping her family tighter, but my other cousin moved away and rarely visits his parents or our family. yes, it may seem that it's "pathetic" going on 30 and living at home, but its a culture thing. and you don't really have any right to judge.

and to pass judgement, i have family and friends over in california, and the stories i hear are: that they just like to buy nice cars, homes, clothes w/e trying to brag about their income status, and how much better they are then other people. they always have to be one up on someone else. if someone buys an E class benz, then the next HAS to buy an S class. so on and so forth. but that's just "stories" i hear for west coast asians.

"If that's the truth, then that is pathetic... who are these people?! What kind of generalization is this?!"

 

[stephenti]

a MAJORITY of asians over the northeast/east coast live with their parents.

I find that statement contrary to everything I know... and I've got a ton of friends who live in the DC/Manhatten area.

First, I should clearify that I'm not saying that the action of living at home is pathetic, rather, that the belief that it is not uncommon to a 20~30 yr old Asian person to live at home is unfounded... and in addition, to suggest that someone SHOULD spend their money to by an NSX while still not being able to get out from living under their parents' roof... THAT, is pathetic. Misaligned priorities.

I live in HH now, but I just moved here from Chicago this year... I grew up in the midwest, went to college, made my own money, bought my own homes/cars (on my 3rd house and 1x car). I know a alot of people whom I've grown up with or went to school with on the West Coast (Seattle, SF, LA), Mid West (Chicago), and East Coast (NY, NJ, DC)... all are on their own and living on their own means.

IMO, of course there are people who live with their folks, and that's great... nothing wrong with that. But that is far from "common", or in the "majority", as you've suggested... at least in my life's experiences... again, just my $'02.