If your 'car' breaks down now and you NEED a car then yes, you NEED to buy a "car". You will pay probably more than you want to for a car since you don't have time on your side.

If you WANT a "car" and you go in say, July when the next years "car" model will be out and they are pushing last years model then you need to figure out which you are willing to pay for - more $$ for next years model or less money for this years model - perhaps you can offer them less. Either way a "car" depreciates value as soon as you drive it off the lot.

Then there's the I have a "car" now but want to start saving to buy a car at "insert future date here" - how long will it take me to save for that "car"- the one I really want.

Should you buy a used car? Another ball park.

Do you go out and buy an SUV right now while gas prices are this high? People are trading them in for cars with better gas milage. Buying and SUV doesn't seem like a good idea right now but hey, go ahead if you want to.

Many variables and different roads to take to get a "car".
"cars" vs. houses are two completly differnt things. There is no harm in discussing on a discussion board.

The day I start spending as much on a car as I do on a house...I'll consider your position qdognj. :)

/tricia

webe, thanks for playing!!! lol

In any event, it is all about "money", and what is an investment and what is not..Why must homes increase in value? Just about everything that people buy does not appreciate in value, and most lose value..My thought is if my home is worth more WHEN i need to sell it,that ok.. And if it is worth less, thats ok too, as i "lived" in it for a period of time..

In general that is great advice.

The big problem is that we are just starting to come down off an era of the highest home price appreciation in modern history. This appreciation was fueled by irresponsibly low interest rates, neglect of oversite on rating agencies, fradulent mortgage brokers and appraisers and slew of greedy investors.

I'm planning on renting for at least the next 5 yrs. I'd rather throw my money away on rent than interest, taxes, repairs and depreciation.

Why is everyone so worried about whether people rent or buy? Is it because if people don't buy they won't get the appreciaion they need to refinance?

chris, i agree 100%, people should do what is best for them, not what others think they should do..Not sure if renting for 5 years vs owning and possibly losing 10% is worth it, but that is a decision you have likley given a lot of thought to..Best of luck to you

Maybe there aren't enough folks who can take the long view. We bought our second house nearly 30 yrs. ago and we shared your attitude about it being a home and not an investment. The first house cost less than our last three cars. The second house cost almost 4X as much as the first and was a real leap, but it was a great place to start our family. Those were the days of 17.9% mortgages with reduced payment rates and negative amortization. Yikes! But it was only money, and we bought because we'd hated renting and not being able to paint or refurbish or have a garden. That old money pit was ours (and the bank's) and we did all sorts of crazy things to put our stamp on it. When we sold, we barely broke even but that was okay. Since then, we've made money on some houses and lost on others. We're about to lose a lot on a house we had to leave, but that's okay, too. We got an amazing deal on the place we bought, which more than makes up for the loss. There isn't anything remotely like this house that we could rent.

Actually Buying a USED SUV and sucking up paying $75-100 a tank may be the better deal

Because they are selling way below book value heck even the dealers don't want them....plus if you pay mostly cash or keep the payment very low, and you don't drive more then 10,000 miles a year....it really maybe a better deal.....

I will keep saying this till i am blue in the face...most Amercians have NO CLUE how to use a calculator.
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Do you go out and buy an SUV right now while gas prices are this high? People are trading them in for cars with better gas milage. Buying and SUV doesn't seem like a good idea right now but hey, go ahead if you want to.

My calculator tells me that we bought our current home for 70% of the builder's original price, and 82% of the lowest price he said he'd accept. He lost more on this house than any of our first nine houses cost. At least he can take a tax loss, which is why he was willing to deal. I'm delighted with our purchase. Not only was it a good price, it's a beautiful home and the view is a balm to the spirit.

A couple who considered buying this house last year now want the builder to build a similar, but smaller, house for them in a nearby area. If they follow through on a cost plus 10% contract (and he's not sure he will take less than cost plus 15%), their new house is estimated to price out considerably higher than what we paid. Were they to build in our neighborhood, the cost would be even higher.

However, I think there are some amazing deals to be had both on existing (resale) houses and builder specs. In some cases, there are even good deals from production builders. One of our children had a house built recently. The builder's incentives included changing certain upgrades to standard features and paying closing costs. The total mortgage payment, including taxes & ins., is $200/mo. less than rent on an apartment that has less than 2/3 the house's SF. Car ins. is cheaper because the car is parked inside a garage, and the garage is another quality of life benefit as well. Due to a steady increase in jobs projected there for the next five years, I have no doubt that it will prove to be a good financial decision. But even if the house doesn't increase in value, it will provide a comfortable, secure home with no shared walls or parking lot security issues or common laundry facility hassles.

I agree. Nobody stops buying cars because they are afraid that they will be upside down on their loan. It's a given that a new car will be worth less the moment it is driven off the lot. People should be purchasing houses as a place to live, not an investment. That doesn't say that one shouldn't be careful not to overpay when buying a home, and to do their due diligence.
I know that when we bought our first home we were told that we shouldn't even think about buying a home if we didn't plan on staying in it at least 3 - 5 years. The conventional wisdom at that time (mid 80s) was that you wouldn't be able to recoup your closing costs and RE fees if you kept the house for a shorter period.

I think that too many people have bought homes without considering how long they would stay in them. Also, too many people bought with an adjustable rate loan, making the assumption that the value of the home would appreciate before the loan rate reset, and that they would easily be able to refinance.

I am really dismayed at the number of people who want to let their homes go into foreclosure because the house is currently worth less than their mortgage, despite the fact that they can afford the payments.

terriks said
The conventional wisdom at that time (mid 80s) was that you wouldn't be able to recoup your closing costs and RE fees if you kept the house for a shorter period.

Excellent point!!! I completely forgot about this, as my agent at the time said the same thing!!! it was 1986-1987 for me, but at that time is was unheard of NOT to put at least 20% down, and my rate was around 12%, and refinanced to 9%!!!! And thought i was the luckiest person ever to get such a rate!!!

By the same token, do DH and I spend the equivalent of about 10% of the value of our "car" (townhouse) to renovate a powder room, full bath, and bath with shower only? Heck, yeah. We live here and we want the bathrooms fixed up. Will we get it all back someday when we sell? Probably not. But it's our home and we live here and we want it nice.