Buying Doodads! lol

[Volatile]

Well my current 1985 Corolla is on it last legs (273,000+km), do i try and make it last another year or do i dig into my deposit for my first property and buy a new reliable car (around $8-9000)?

It is a hard decision, have others had the same or similar decision to make?

[mals69]

Eat your meat and greens first!

Take the bus, buy a bike, get a cheap lower mileage car - plenty out there with the over supply of cars,i picked up a 2 owner 88 civic with 130 000km on the clock for $500 last year and have done over 15 000 km and not spent a cent on it,and just because you buy a $8000 car does not guarantee a problem free car.

What ever you do,do not touch your deposit keep going and then borrow against your property for your $8000 car then.

Or keep going lean and build a property portfolio, and one day have your desert and buy a brand new porshe.

[SuperDad]

To put things in perspective:

I think you'll find that you won't be able to borrow against the equity you have in a car to finance a house deposit.

Paul.

[rustica]

Doodads vs wealth creation

No no no doodads, I agree with Mals69 and SuperDad, no doodads whilst you are gettting your property portfolio going and you certainbly won't borrow against it.....unless of course 'image', comfort and those types of emotions are more important than wealth creation.

I had a friend recently who had bought her first home at age 50 on a 100% Wizard loan and refinanced $25000 after a year (after losing close on $5000 in exit fees and loss of LIM fee).

In my concern about her perchant for doodads, I bought her Rich Dad Poor Dad. She said to me ' that book is talking about me!' Then continued to spend $9000 on a car and the rest on improvements decks, tiling, painting of her home. It certianly makes her feel good to have a new car and a lovely new bathroom.(And that is fine because that is her values, because she knew what she needed to DO to create some wealth but chose not to)

If she instead had put that into an IP, in 8-10 years (about 'retirement' - I hate that word), she may have created 100000 or 200000 in equity instead.

Opinions differ in property circles, however what path you choose depends on your mindset, your skills, knowledge, risk levels, values and the goals you have (to name a few) for your life that you want property to help you achieve

Good luck!

[Volatile]

Take the bus, buy a bike, get a cheap lower mileage car - plenty out there with the over supply of cars,i picked up a 2 owner 88 civic with 130 000km on the clock for $500 last year and have done over 15 000 km and not spent a cent on it,and just because you buy a $8000 car does not guarantee a problem free car.

What ever you do,do not touch your deposit keep going and then borrow against your property for your $8000 car then.


Or keep going lean and build a property portfolio, and one day have your desert and buy a brand new porshe.

Good advice there, i think i will try and make my current car last longer. Insurance is cheap also.

I just get sick of old cars failing warrants.

[Volatile]

No no no doodads, I agree with Mals69 and SuperDad, no doodads whilst you are gettting your property portfolio going and you certainbly won't borrow against it.....unless of course 'image', comfort and those types of emotions are more important than wealth creation.

I had a friend recently who had bought her first home at age 50 on a 100% Wizard loan and refinanced $25000 after a year (after losing close on $5000 in exit fees and loss of LIM fee).

In my concern about her perchant for doodads, I bought her Rich Dad Poor Dad. She said to me ' that book is talking about me!' Then continued to spend $9000 on a car and the rest on improvements decks, tiling, painting of her home. It certianly makes her feel good to have a new car and a lovely new bathroom.(And that is fine because that is her values, because she knew what she needed to DO to create some wealth but chose not to)

If she instead had put that into an IP, in 8-10 years (about 'retirement' - I hate that word), she may have created 100000 or 200000 in equity instead.

Opinions differ in property circles, however what path you choose depends on your mindset, your skills, knowledge, risk levels, values and the goals you have (to name a few) for your life that you want property to help you achieve

Good luck!

First off i would never borrow against a property to buy something such as a car. Thats terriable practice IMO.

I feel sorry for your 50 years old friend. My girlfriends boss is very similar. She is 41, single, has a large consolidated loan that took care of credit card debt and a vehicle loan. And she is still renting, stuck in a cycle!

So in search of financial success/freedom, when is it appropriate to buy the things you want and enjoy the fruits of your success?

[SuperDad]

So in search of financial success/freedom, when is it appropriate to buy the things you want and enjoy the fruits of your success?

This is just my opinion, but I would say that it is appropriate whenever doing so fits with your goals. If purchasing a car won't restrict you from achieving your goals, then I would say "go for it!"

Having a functioning car is arguably a key part of achieving your goals. I for one couldn't go open-homing, or visit my broker/solicitor/other professional without a functioning car.

And then there are lifestyle factors to consider - we recently purchased a new (2nd-hand) station wagon, to accomodate our growing family. I also need a good car to get me to my fishing spots. Our car cost $6K all up - year 2000 Ford Mondeo, Air bags, ABS, AirCon. All of these features were important safety features (yes, AirCon is a safety feature!).

Sounds like you're driving a lemon - time to upgrade to an orange?

Paul.

[Volatile]

This is just my opinion, but I would say that it is appropriate whenever doing so fits with your goals. If purchasing a car won't restrict you from achieving your goals, then I would say "go for it!"

Having a functioning car is arguably a key part of achieving your goals. I for one couldn't go open-homing, or visit my broker/solicitor/other professional without a functioning car.

And then there are lifestyle factors to consider - we recently purchased a new (2nd-hand) station wagon, to accomodate our growing family. I also need a good car to get me to my fishing spots. Our car cost $6K all up - year 2000 Ford Mondeo, Air bags, ABS, AirCon. All of these features were important safety features (yes, AirCon is a safety feature!).

Sounds like you're driving a lemon - time to upgrade to an orange?

Paul.

Haha it was really a very silly question, i need to sort out my REAL goals first. I have the "means" to invest in property but lack the knowledge of what "ends" i seek.

[cube]

First off i would never borrow against a property to buy something such as a car. Thats terriable practice IMO.

And it is also what everyone with a mortgage does when they buy a car, TV, dog, ......

Even if they buy it for cash, that cash could have gone to pay off the mortgage, rather than buy the 'doodad'.

IMHO, if you have a mortgage, all discretionary spending is 'borrowed' against property. I'm not saying if that is good or bad (or that I am any good at not buying doodads!) - that is just the way I see it.

cube

[rustica]

And it is also what everyone with a mortgage does when they buy a car, TV, dog, ......


......and is why when 50% of mortgages come off fixed rates of around 6% in New Zealand at the end of the year, those that borrowed against their mortgages for cars, tvs, dogs holidays etc there may be some people struggling to pay off their mortgages witht he extra weekly repayments and hence maybe some bargains to be had.

PS I like Doodads too

[kane656]

I agree with SuperDad.

Whilst some cars are a great sponge for hard-earned savings, you must be reliably mobile. You need to be able to visit banks, brokers, auctions, open homes, lawyers, property investment seminars etc.

Why don't you spend $4,000-$5,000 on a cheaper, yet newer car? I suggest Japanese over European, 1.5 or 1.6 litre and something that is in plentiful supply such as a Toyota Corolla or a Honda Civic.

Why make the journey harder?

K

[nuts]

volatile, didn't you say you had over $55k in the bank? Surely a $5k (or $9k if you have to) car is not going to drastically alter your future. I guess it just depends on how much you need or would like a new car.

[whitt]

Summary:

Buy the cheapest reliable car you ego will let you drive around in.

[mals69]

Rustica Post

(and is why when 50% of mortgages come off fixed rates of around 6% in New Zealand at the end of the year, those that borrowed against their mortgages for cars, tvs, dogs holidays etc there may be some people struggling to pay off their mortgages with he extra weekly repayments and hence maybe some bargains to be had)

Great tips that one Rusitca,alot of them most probably the ones who sung out at the time of taking out their mortgage, that their bank manager had given them a good 2 to 3 year deal.I fixed during the period of that 6.5% rate 6.3% to me with westpac's redpac package ($25 per month) lowest it had been in 30 years.
I fixed for five years funny how the majority of time the bank offers or suggest a 2 year fixed term if the borrower's are smart enough to fix in the first place.

Volatile the third party insurance is great $74 a year for the civic.

Cube - Good point (Even if they buy it for cash, that cash could have gone to pay off the mortgage, rather than buy the 'doodad') or kept the equity in and used it to borrow against for a investment rental.

Superdad hows the new investment going ? - are you swimming nicely ? :-)

[kane656]

Generally speaking, a $5,000 Alfa will cost far more than a $5,000 Toyota...