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Discussion Starter · #1 ·
Well, what do you think? I am currently renting a apartment. Therefore, I have no garage to put my Cayman in if I get it, but if I get a house then I can't afford a Cayman S anytime soon (within the next year or so). What a croc! Ha! (sorry about that, but just couldn't help it/fckeditor/editor/images/smiley/MWPX/teeth_smile.gif)I was planning on ordering in November or December. Do most of you have a garage to store your Cayman from the elements and jealous persons? Any comments would be greatly appreciated. I did read here once where someone posted the following: 'You can't drive a house!' But it would be nice to have a place to put a $75K car when not in use.


Cheers,


Jason
 

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Buy a house first. Cool cars will come and go (and depreciate) but real estate is almost always a good investment. I waited relatively late in life to buy a home and kick myself almost daily for not taking the advice years ago to buy. Inner city areas in Houston that were considered 'undesirable' in the '80's are now worth 10 times what they were back then. I probably could be retired now if I'd listened back then.
 

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You have to decide what your priorities are at this point in your life. You haven't mentioned how old you are, whether you're married, where you live, whether your income is good/adequate, etc. so your question is a hard one to answer.

However, you have to look at it this way: in most cases a house is an appreciable asset - meaning it'll increase in value over time, so any money you put into buying the house is essentially an investment. 99.99% of cars are the opposite - they are a depreciable asset and will decrease in value the moment you drive it off the dealer lot. So after a few years, your Cayman S may be beat up and worth less than 50% of what you paid for it. Then again, having a house may mean you won't have a nice car to put in the garage for a few years.

I'm not telling you which way to go, because either direction can be acceptable or appropriate depending on your own circumstances. My best recommendation is to sit down and think about where you want your money to go right now, if you have to choose one or the other.

In my case, I got married in 2001, purchased a condominium for $258k, let it appreciate to over $400k in 2004 (housing prices in LA are crazy!), and bought a 5 bedroom house for $1.1M last year. The CS is my first >$35k car, and I have no regrets about waiting until my other finances were in order before taking the plunge on what is essentially an expensive luxury item.
 

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Discussion Starter · #4 ·
Thanks for the advice. I am married and am 29. I am not rich by any means andcannot afford both at the present time. I agree that the house is a better investment and I can always wait a get a Porsche later. Who knows, maybe they will come out with a better version (say a 3.6 L or 3.8 L boxer-six) Cayman and I could get that. I'm going to look at a few houses this afternoon. It's still a tough decision especially when Wifey wants me to get the car instead of the house. She's great! Couldn't ask for a better half.


Cheers,

Jason
 

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They're both cool items to have, the house will ultimately bring you more money in the future which is great but the car will bring you massive amounts of entertainment for an unknown period of time.



Don't forget the upkeep on the cayman as well.. oil changes, brake fluid changes and the 2-3 sets of tires you'll end up with if you take it to the track often.



If you're financing the car, you may not be able to buy the house with that large of a loan on your credit.
 

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You have to answer some questions 1: Will you stay at this house for 5 years or longer? If the answer is yes, thehouse2: Is the area your in in a short term market slump? If you can get a good deal in a house go for it3: Will a short term loss of up to 5% in a house make you loose sleep? Corolary Make sure you get a good deal,also over time that will notbe that important as long as you live in an area that is growing jobs and income.


My gut feeling is buy the house first, but the above questions are important to make a good deal, and mental health. Remember the car will depriciate 50% or more in 4 years.
 

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Financial counseling 101.
 

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I'm not sure how the market is where you're at but you might want to wait a year or so.

In Los Angeles, housing has generally been going down.

I'm in the process of selling my condo right now, going to wait a year or so and then going to try and get into a house. My fiance is renting a duplex that's really cheap and it makes more financial sense for us even though I won't have a garage to put my car in. I'm not happy about it but oh well.

My personal opinion is that the market peaked about 6 months ago and it's slowly heading down. I don't think it'll be a huge drop but enough that it'll be worth your while to wait.

A lot of sellers are holding out on high prices but you see the prices drop $20-50k after a few months on the market and housing inventory is only increasing.

So to answer your question, I would say wait on both the house and the car.
 

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Jason,


I can't add much to the great advice above except to say, what's with your wife? She's pushing the car? I count on my wife for her practical viewpoint.God help me if she pushed a Porsche back when I was 29. That said, even though you will have to pay to upkeep the Cayman, upkeep on a home is tenfold--new furniture, painting, roofing, plumbing, electrical work, appliances and the list goes on. The house is definately the priority for you now assuming that you are planning on staying in your current locationPlus you will spend a lot more time in your home than you do in your car -- unless you choose to live in your Cayman/fckeditor/editor/images/smiley/MWPX/naughty.gif
 

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Housing in Los Angeles going down? Where do you live? I guess it really depends on location... I'm in West LA area the housing is still hot.
I'm in Westchester, just south of West LA and the housing market is definitely not hot any more in West LA.

I'm not saying housing prices will drop 50% but houses are staying on the market for months at a time instead of days from about a year ago. Across the board, people are having to lower ther prices.



Here's an LA times article about it, it doesn't just cover LA but it has some interesting facts..

http://www.latimes.com/classified/r...0,7733594.story?coll=la-class-realestate-news

Some key points..



'Sales of existing homes dropped 4.1% in July, the fourth consecutive monthly decline, to a seasonally adjusted annual rate of 6.33 million units, the National Assn. of Realtors said. That was down from a revised 6.6-million-unit pace in June.'



'The supply of homes for sale at the end of July jumped by 3.2% to 3.86 million units. This represented 7.3 months' supply, the highest since April 1993.'
 

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Dude...this is easy. one of Maslows first order of needs is shelter. get the house!


and the last order is self-fulfillment which the cayman belongs.
 

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Well, what do you think?
I can't believe it's a serious questions. Just consider that:



'The Almighty above ain't making any more land (except in Hawaii)'



while



Car are depreciating assets that all end up, sooner or later, in the junkyard or Mexico.



Lets see ... which one to buy :)



Seriously, RUN, do not walk to buy a house
 

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Buy a house...there is plenty of time for the nice car. You should find yourself in the front end of a buyers market in your part of MD. Reasonable discounts off listing price are becoming common in your area, and growing, as inventories of unsold houses continue to rise in your area.

As has been said here many times ...get the house.
 

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This thread really makes me realize how different people are on this forum than on other car forums. For the last 3+ years I was a fairly active member of several Nissan 350Z forums (my previous car), and multiple threads about this same topic came up. Invariably, a majority of the replies were 'live for today, get the car, you can worry about a house/retirement/savings later' and the ensuing flamewars that arose from this bad advice.

Glad to see CaymanClub's members are slightly more mature, for the most part. :)
 
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