Just drove the new Mustang. V8 manual = love

[Ekona]

Really, you're absolutely right. Do the house first, you'd be mad not to.

 

If I'd have done that though, I would never have owned my dream car. Okay, so in a few years time maybe I'd have enough to do it anyway, but I wouldn't have had it when I was so young. If the Mustang is your dream ultimate car, then I'd go for it, but otherwise I'd do the property thing instead.

[Linus27]

Im with Ekona on this although being of a mature age now my advice would be house first, car second. Stick with what you have and get yourself on that property ladder before it becomes unreachable.

 

I'd say blow it all on hookers, cocaine and booze. You'll be screwed literally but you just won't care

Edited January 26, 2016 by Linus27

[Ekona]

Interesting review of a UK V8 Stang on UK roads in this month's Evo. Not particularly positive in terms of handling, which is a shame.

[Richf]

I reckon they will plummet like a stone depreciation wise once the hype dies down

[Mikevv]

I had a look at mortgages, even if I double my wages, I'd still be looking at £650-£700 a month for the next 35 years -.-

Granted that's only a £20k deposit, but I can't see how I can get much more than that. The banks I found will only lend me around £35k for a house on my wages of £16k a year, accounting for the £300 a month expenses like fuel/insurance etc.

 

I don't have a partner to chip in for repayments as she is going to be a med school student soon ( hopefully it all pans out for her ) and then she hasn't got the money or even spare time for a job over the next 5-7 years I think it is!

 

It sucks, cause I wholeheartedly agree that property will not lose you money, provided it's kept in a good condition, will actually make money usually... but it's so hard to get on the ladder!

[Kraziekatz1]

Lol just twigged.....you're the woodwork guy, now I understand

[Linus27]

I had a look at mortgages, even if I double my wages, I'd still be looking at £650-£700 a month for the next 35 years -.-

Granted that's only a £20k deposit, but I can't see how I can get much more than that. The banks I found will only lend me around £35k for a house on my wages of £16k a year, accounting for the £300 a month expenses like fuel/insurance etc.

 

I don't have a partner to chip in for repayments as she is going to be a med school student soon ( hopefully it all pans out for her ) and then she hasn't got the money or even spare time for a job over the next 5-7 years I think it is!

 

It sucks, cause I wholeheartedly agree that property will not lose you money, provided it's kept in a good condition, will actually make money usually... but it's so hard to get on the ladder!

 

Don't fall in to the trap thinking that buying a property is an asset. It's not, it's a liability. It rarely is an asset unless you, get on the ladder early, buy it dirt cheap or free, stay in it forever or buy a property to let. In simple terms, if you bought a house tomorrow it would not be giving you a return, in fact you would be paying out to keep it.

 

For example, let's say you buy a house for £100k and over 20 years it's worth £250k. So you have a £150k in the pot minus any interest on the mortgage. Over that 20 years you would of had to pay out council tax, electric bills, gas bills, water bills, repairs, a new kitchen, carpets, plumber, builders, new taps, soft furnishings and all the other crap that goes on top of owning a house. Then the cost of selling the property and after all that, chances are, you won't be left with much. I've just added up very roughly what my council tax, water, electric and gas bill would be after 20 years and it's around £85k. Makes you think right.

 

It's still worth getting on the property ladder as early as possible but don't look at it as an asset that's going to make you money. Not in the purest form anyway.

Edited January 26, 2016 by Linus27

[mouthwash]

I had a look at mortgages, even if I double my wages, I'd still be looking at £650-£700 a month for the next 35 years -.-

Granted that's only a £20k deposit, but I can't see how I can get much more than that. The banks I found will only lend me around £35k for a house on my wages of £16k a year, accounting for the £300 a month expenses like fuel/insurance etc.

 

I don't have a partner to chip in for repayments as she is going to be a med school student soon ( hopefully it all pans out for her ) and then she hasn't got the money or even spare time for a job over the next 5-7 years I think it is!

 

It sucks, cause I wholeheartedly agree that property will not lose you money, provided it's kept in a good condition, will actually make money usually... but it's so hard to get on the ladder!

 

Don't fall in to the trap thinking that buying a property is an asset. It's not, it's a liability. It rarely is an asset unless you, get on the ladder early, buy it dirt cheap or free, stay in it forever or buy a property to let. In simple terms, if you bought a house tomorrow it would not be giving you a return, in fact you would be paying out to keep it.

 

For example, let's say you buy a house for £100k and over 20 years it's worth £250k. So you have a £150k in the pot minus any interest on the mortgage. Over that 20 years you would of had to pay out council tax, electric bills, gas bills, water bills, repairs, a new kitchen, carpets, plumber, builders, new taps, soft furnishings and all the other crap that goes on top of owning a house. Then the cost of selling the property and after all that, chances are, you won't be left with much. I've just added up very roughly what my council tax, water, electric and gas bill would be after 20 years and it's around £85k. Makes you think right.

 

It's still worth getting on the property ladder as early as possible but don't look at it as an asset that's going to make you money. Not in the purest form anyway.

 

What? Why would you take your gas/water bill etc away from the profit of owning your own home?

 

I agree about a house being a liability these days, can house prices really keep increasing like they have? It's quite scary how much they're worth at the moment, they're already disproportionate in comparison to average incomes (in the South of England).

[Linus27]

I had a look at mortgages, even if I double my wages, I'd still be looking at £650-£700 a month for the next 35 years -.-

Granted that's only a £20k deposit, but I can't see how I can get much more than that. The banks I found will only lend me around £35k for a house on my wages of £16k a year, accounting for the £300 a month expenses like fuel/insurance etc.

 

I don't have a partner to chip in for repayments as she is going to be a med school student soon ( hopefully it all pans out for her ) and then she hasn't got the money or even spare time for a job over the next 5-7 years I think it is!

 

It sucks, cause I wholeheartedly agree that property will not lose you money, provided it's kept in a good condition, will actually make money usually... but it's so hard to get on the ladder!

 

Don't fall in to the trap thinking that buying a property is an asset. It's not, it's a liability. It rarely is an asset unless you, get on the ladder early, buy it dirt cheap or free, stay in it forever or buy a property to let. In simple terms, if you bought a house tomorrow it would not be giving you a return, in fact you would be paying out to keep it.

 

For example, let's say you buy a house for £100k and over 20 years it's worth £250k. So you have a £150k in the pot minus any interest on the mortgage. Over that 20 years you would of had to pay out council tax, electric bills, gas bills, water bills, repairs, a new kitchen, carpets, plumber, builders, new taps, soft furnishings and all the other crap that goes on top of owning a house. Then the cost of selling the property and after all that, chances are, you won't be left with much. I've just added up very roughly what my council tax, water, electric and gas bill would be after 20 years and it's around £85k. Makes you think right.

 

It's still worth getting on the property ladder as early as possible but don't look at it as an asset that's going to make you money. Not in the purest form anyway.

 

What? Why would you take your gas/water bill etc away from the profit of owning your own home?

 

I agree about a house being a liability these days, can house prices really keep increasing like they have? It's quite scary how much they're worth at the moment, they're already disproportionate in comparison to average incomes (in the South of England).

 

It's because you have to pay for the gas/water bill out of your own money. It's classed as an expense, you can't not pay it unless you have your gas and and water turned off. Unless the property is a BTL where the tenant pays the bills, you need to pay. It's money going out for the ownership of the property.

[Mikevv]

Lol just twigged.....you're the woodwork guy, now I understand

 

Care to elaborate? I don't quite get where you're going with this?

[Kraziekatz1]

Lol just twigged.....you're the woodwork guy, now I understand

 

Care to elaborate? I don't quite get where you're going with this?

The big romantic Valentine gesture!!!! Preparing OH for Mustang instead of nest lol

Only joking, thought your other thread was lovely

[Mikevv]

Lol just twigged.....you're the woodwork guy, now I understand

 

Care to elaborate? I don't quite get where you're going with this?

The big romantic Valentine gesture!!!! Preparing OH for Mustang instead of nest lol

Only joking, thought your other thread was lovely

 

She's actually on board with me getting a Mustang haha she said it's my money, and I worked for it, so I get to choose how I spend it

The pro's of being very early 20's aye?

[brillomaster]

Lol just twigged.....you're the woodwork guy, now I understand

 

Care to elaborate? I don't quite get where you're going with this?

The big romantic Valentine gesture!!!! Preparing OH for Mustang instead of nest lol

Only joking, thought your other thread was lovely

 

She's actually on board with me getting a Mustang haha she said it's my money, and I worked for it, so I get to choose how I spend it

The pro's of being very early 20's aye?

 

saying 'its your own money' is a little strong... most of the money will be the finance companies

[mouthwash]

It's because you have to pay for the gas/water bill out of your own money. It's classed as an expense, you can't not pay it unless you have your gas and and water turned off. Unless the property is a BTL where the tenant pays the bills, you need to pay. It's money going out for the ownership of the property.

 

So, if you don't own a place how do you get gas and electric? I'm assuming that then becomes the cost of renting? And would you factor that 85k on top of 20 years worth of rent? (silly example but a static amount of rent at 700 for 20 years is 168000 + 85000 = 253k lost).

 

I don't think many people would consider paying for utilities as part of the investment of buying a house. That would be like including food, entertainment and other choices you make that cost you money.

[Jetpilot]

I think your love of the car is clouding your judgement if you dont think the depreciation will be high. It is a big american v8 that is mass produced, at the moment with the hype and supply and demand on numbers it will hold, but when they are readily available I think they will drop like a stone, especially if reviews arent favourable.

 

I was just trying to make you aware of how much it will cost you to own the car as its all too easy to think, its only £350 a month and tbf if you earn £16k and thinking of buying a car that costs twice your wages i think your mad, but if its something your feel comfortable with, go for it.

[Ekona]

I had a look at mortgages, even if I double my wages, I'd still be looking at £650-£700 a month for the next 35 years -.-

Granted that's only a £20k deposit, but I can't see how I can get much more than that. The banks I found will only lend me around £35k for a house on my wages of £16k a year *snip*

Woah, stop right there! £16K a year and you're looking at buying a car worth more than twice that? That's the very definition of insanity. Unless you can buy it outright with cash, there's no planet on which buying a brand new Mustang would make any sense at all, not on those wages.

 

I mean, how much is the rent and utilities on the place you're living at now? That's got to account for a massive chunk of your wages, surely.

[Mikevv]

I had a look at mortgages, even if I double my wages, I'd still be looking at £650-£700 a month for the next 35 years -.-

Granted that's only a £20k deposit, but I can't see how I can get much more than that. The banks I found will only lend me around £35k for a house on my wages of £16k a year *snip*

Woah, stop right there! £16K a year and you're looking at buying a car worth more than twice that? That's the very definition of insanity. Unless you can buy it outright with cash, there's no planet on which buying a brand new Mustang would make any sense at all, not on those wages.

 

I mean, how much is the rent and utilities on the place you're living at now? That's got to account for a massive chunk of your wages, surely.

 

Ummm the massive sum of £0

All I pay for is my car. Parents pay for food and rent is free.

Yes I realise I sound like a spoiled brat, but hey.

[Jetpilot]

Nothing wrong with that at your age dude imho, but, however cool you think it will be to own one, all kudos points will be lost when your parking it on mum and dads drive ; )

 

I can solve your problem for a fraction of the cost, get a decent exhaust for your zed, they sound awesome with the right system.

Edited January 27, 2016 by Jetpilot

[Adrian@TORQEN]

Listen to your elders, we all have twice your age , so we're supposed to be wiser

[Ekona]

You need to move out first fella. Owning a brand new car but living with your parents? C'mon.

 

The trouble is that the Stang is going to tie you down for what, three years at least? And then you're going to have to refinance the balloon, or sell the car, so either that's another three years or you've just wasted three years. If you're spending that much on the car then you're definitely not going to be able to do any serious saving, which means that you're even further from moving out, and at 23/24 you're really going to want your own place. That's the point when you realise that you definitely can't afford anywhere as interest rates are higher and property has gone up another 20%, so you're even more stuffed.

 

If you had your own place already (owned or rented) then I'd say go for it and live the dream, but as you don't and you're on practically minimum wage then that's just crazy.

[ioneabee]

sorry Mike - another ................ you really need to put your "sensible" head on here

[350 Russ]

At least wait a minimum of a few years and see what the prices are looking like, given the petrol prices WILL go back up then a 5l v8 will become not very desirable and prices will prob take a nose dive so you might be able to get one for under 10k

[ZEUS]

I bought a brand new mk2 3.2 v6 tt when they first came out in 2007, 14 months later i sold it and I lost 11 grand on it. Still makes me feel sick thinking about it, never again. It's boring but buy a house the car can come later on.

[brillomaster]

or just be happy with the car you've got! most guys your age have to make do with a 1.2 corsa - the only reason you can afford the insurance on a zed is because you aren't yet paying any rent, food or bills.

 

if you get a V8 when you're 21 then where do you go from there? V12 by the time you're 25? I suspect it'll be more likely at some point you'll have to downgrade, which nobody every likes doing.

 

then again, if you are able to live with mum and dad, why not spunk £400 a month on a flash car for 3 years, then give it back when the deal ends? you'll be no better off than you are now, but you'll be no worse off either.

[Linus27]

It's because you have to pay for the gas/water bill out of your own money. It's classed as an expense, you can't not pay it unless you have your gas and and water turned off. Unless the property is a BTL where the tenant pays the bills, you need to pay. It's money going out for the ownership of the property.

 

So, if you don't own a place how do you get gas and electric? I'm assuming that then becomes the cost of renting? And would you factor that 85k on top of 20 years worth of rent? (silly example but a static amount of rent at 700 for 20 years is 168000 + 85000 = 253k lost).

 

I don't think many people would consider paying for utilities as part of the investment of buying a house. That would be like including food, entertainment and other choices you make that cost you money.

 

If you don't own a place then you either don't need gas and electric as you have no property or if you are renting then you are paying for it along with rent, council tax etc. and there is zero return on your investment. Using your example, you would be £253k out of pocket with nothing to show for it. My sister rents and I told her how much she has spent over the years and look at the property she could of bought. She was quite shocked and upset but for a lot of people this is their only option for various reasons.

 

They may not consider it but sadly it is the case and its still an outgoing expense purely and 100% due to owning a property. Regardless of owning a property or not, you still need food and entertainment, it doesn't suddenly become a factor when you buy a property. Likewise, you do need to start paying for water, gas and electric bills when you own a property.

 

Put it another way, if I bought a TAG Heuer Monaco watch in 1970 say for £500. Kept it for 30 years and its now valued at £8,000. What would be my overheads/outlay/cost of owning it be? Things that can't be avoided, have to be paid by law? Nothing, zero. My return on my initial purchase price would be huge so its an asset. Do the same for a property and regardless of anything else, you incur costs that can't be avoided. You need to pay electric, water, gas, council tax etc. You simply can't avoid paying for these things when you own a property. Food and entertainment is not a fixed requirement when owning a property, food is a human necessity and entertainment is a luxury. So you simply can't avoid financial outlays when you own a property.

 

Anyway, we are going off topic quite a bit so we should draw a line under it.

 

As I say, blow it all on hookers, cocaine and booze. Its the only way

Edited January 27, 2016 by Linus27