House, or car?

[Style]

Hey, i'm currently 18, I live with my parents, and i'm currently torn between two choices.

Number one, I save for, and purchase a car. This is great as a covenience factor.

Number two, I save for the down payment on a house. I'm perfectally ok with taking transit, etc.


What do you guys think?

[terry1156]

Re: House, or car?

As an investment, the house is the way to go. Cars are expensive to maintain...if you don't mind taking transit, you will increase your wealth immensely choosing the house.

[acezz4e_tish]

Re: House, or car?

a house is a major investment. i would go with that one but get a good inspector to be sure of the place. i would think that would be a larger investment tho, so u would prolly wait longer if you go that way too.

[cercis]

Re: House, or car?

I'm jealous that you live someplace you can take public transit.

I'd love to not need my car. It's going to die soon and I hate to have to get a new one, but I don't see much choice right now. Maybe, just maybe, if it holds out until September, I can bike or walk to work (the kids will go to a different school, closer to home).

If you can swing it, I'd save for the house. Worst case scenario, you can't get by without the car and you have the money ready for it.

[Tree0164]

Re: House, or car?

If you can take public transportation I would stick with that.
However who says you can't save for both.

[acezz4e_tish]

Re: House, or car?

it also depends on cost of transportation too. i mean to get picked up on this dirt county road is 5 dollars. each stop will cost you five also, we only have a cab here. if you got to pay about 5 dollars a day, then starting with the car would make more sence. pride of ownership of the vehicle you chose is priceless too. its ultimatly your decision alone and i guess since my mom helped me get both, i didnt have this problem. dont be in a rush to buy a house either just to get out of mom and dads. you have to think of the future. is it one bedroom, cause you could not take on a roomate if so, if you need to in the future to help with cost of living. down the line you may want to marry and have children. i seen on tv that people are getting away from the starter home situation. they are thinking more about the future. if your gonna buy a home why buy it if in your mind, you want to live there only a couple of years, why such an investment. it will take longer then that for a mortgage. think it thru and not as today is today type, you got to concider the future. is this home something you can see yourself in for long term. whats the neighborhood like. i mean if its a college area, you wont be in college forever, but that area will more likely then not be a college area forever. it wouldnt be the place for raising lil ones. location is the top listed priority i belive in looking at a home. of course, it also matters if your going to school to become a teacher. they are given opportunities for rebuilding communitys. you can get both that way, car and home, if your going for a degree to teach, and law enforcement too if i remember correctly, they comp the down payment i think its 15% of the home and the home is cheaper cause they are trying to rebuild an area with empty homes to a family community. depending also on if your parents farm, there are programs for that as well. i would look at all your options. call fha and hud, and always if your going to college you can ask a councelor. they would have all the rental information in the area. talk to a few sales agents, dont just settle for the first. get your best offer.and chose by one that you would consider a friend in the end, cause if they arent about what you like, u will see things that would be like wasting your time. be decisive about what you want. write it down and make sure that they know you would settle for nothing less, and put a bonus list on it too. such as, demand list no less then 2 bdrms, 2 baths, large kitchen, formal dining, bonus list a full basement or pool or bonus room off a garage. then stick to what you want, dont let them show you something that dont cover your demand list. dont sign with that person either until your sure thats what you want and they will give you what you want. even tho you want to be independant, your parents would have your best interest at heart, and one of them should be with you when you make these decisions cause they can help with telling you thier oppinion of the persons, places, things. they will be honest and give you gr8 guidence. dad could prolly spot if a home had previous termite problems where someone may not be forthcoming wtih that information. Im not trying to blame anyone for any one thing, but i will give you an example so that you have a better idea of what i mean. i had a 99 acclaim. i needed a new chip in the computer for the transmission. i called around on it, the only one place that did that work told me 400 out the door. i had my dad go in for me and the job ended up costing him 286. why a 114 dollar difference? cause he was a man? same car, same need, next day he went in. i believe that if someone sees a chance to take advantage they will. your 18 you should always keep your parents involved. even tho you want to do things on your own, they being there will prevent more chances of this happening. and you want your best options for your best prices. having others involved would keep things more in line. dad will know if your getting the best deal and him being with you, can only be a good thing.

[Ima saver]

Re: House, or car?

I would go for a house. I saved my money the first year and bought my first house (new) at age 21. 8 years later I sold it and almost doubled my money. Then I built a better one and made money when I sold again. It was my best investment move that I have made in my lifetime. As I have mentioned before, we have never made real good money, but have always had a paid for house the past 30 years.

[sweeps]

Re: House, or car?

I say buy a car. Your lifetime earning potential is the most valuable asset you'll ever have -- much more valuable than a house. Unless you live in New York City where a car will do you no good, you need a car to be able to get to work, go on interviews, make business connections, and, frankly, to get out and have a social life.

[Fern]

Re: House, or car?

Go for the house.

If you can rely on mass transit to get to your job and you're in a metro area, like others said here, the house as an investment will help you accumulate equity, while the car depreciates in value with every passing day.

Also, the cost of a car is not just the purchase price. You've got to factor in:
* insurance
* annual registration, inspections
* maintenance

[baselle]

Re: House, or car?

Tough choice. These days, depending where you live, neither is a fantastic deal.

Concentrate on buying assets - things and situations that make you money. Try not to buy things that seem like assets but are liabilities. If you are set on a car, buy a 2-3 yr old used car where the liability (the depreciation) is low. If you are set on a house, get a loan where you aren't just paying interest, and if you can get a renter, all the better.

[Snoopy2645]

Re: House, or car?

I would probably save for the house if you dont need a car for a job or something else to help you get to the place in life where you can buy the house