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BMW 3-Series (E90 E92) Forum
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Can I really afford a BMW?
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08-22-2016, 12:30 PM | #89 | |
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08-22-2016, 12:32 PM | #90 |
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We're in a similar position, you make much more than me, but I'm in a pretty low COL area.
I bought a rental property and have a $15k 335. Even the couple thousand I've burned on that car in repairs and depreciation pains my frugal side. I think I'd punch myself in the face if that number was ~$30k after two years. |
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08-22-2016, 12:32 PM | #91 |
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My situation is likely much different from others here.
I've owned 5 primary houses in my young life, with the first house I bought at 27. I currently have a couple investment properties for long term holds. I've cleared profit on EVERY primary house, more so than any other investment where I place $$ over the same time period. Favorable tax laws allow the owner to deduct interest and other items (closing costs, taxes, etc...), coupled with basically free $$ to borrow. I see little downside to placing $ into a real and tangible investment. Additionally - when the asset is sold, no capital gain taxes...! How is this not a win/win. Even if the OP's cash flow is tight, rent out rooms to help cover the mtg, then sell in 2 years and pocket the $$. |
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08-22-2016, 12:33 PM | #92 | |
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08-22-2016, 12:35 PM | #93 | |
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Outside of the advice on saving for a house, paying off student loans, and investing, there are some much less expensive fun new cars out there with a 6MT. Do you want something with 4 doors, or do you ever head up to Lake Tahoe to ski or snowboard? If so, take a look at an STi. Do you want a coupe with loads of power and is also capable on the track? If so, there is the Mustang GT with the track pack. If you want a nimble canyon carver and the lack of a back seat isn't an issue, then check out the new MX-5. It really is a good time to be an enthusiast.
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08-22-2016, 12:36 PM | #94 | |
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08-22-2016, 12:37 PM | #95 | |
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This is how I do it too. There's no sequence of events that needs to happen before you buy a car, just priorities and where you allocate your cashflow. If you have $ leftover at the end of the month after hitting your targeted retirement goals + paying for all your expenses, there's no reason not to buy a brand new M3/M4. In OP's case, not yet.
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08-22-2016, 12:37 PM | #96 | ||
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08-22-2016, 12:38 PM | #97 | |
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Seriously, I'm not joking, he should buy my E90 M3 with 52k miles for $30k. That car may depreciate another $5-10k in the next 2 years, and then hold steady from that point on.
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08-22-2016, 12:39 PM | #98 | |
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Long term (10+) yes, prices will have gone up, but short term, most seasoned real estate agents i talk to are predicting we are at or near the top of the market and it will drop a decent amount in 2-3 years. Like I said earlier though, it is location dependent and not everywhere will see a widespread drop in value. if you are thinking of buying now, do the research to make sure your area isnt at the peak. |
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08-22-2016, 12:40 PM | #99 |
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Yeah... really early. The reduced contribution limit kicks in pretty low on those things
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08-22-2016, 12:43 PM | #100 |
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damn, look at all you rich people in here not being able to contribute to Roth today... #richpeopleproblems
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08-22-2016, 12:44 PM | #101 | |
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Times have changed.. RE is harder to get in for the 20's in today's market.
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08-22-2016, 12:45 PM | #102 | |
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MKSixer and Sugarskulls are the rich ones... they drive i8s. I have an M2, which OP said earlier isn't even a proper M.
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08-22-2016, 12:47 PM | #103 | |
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Example #1 - 45 years old has two kids at home, no savings, no retirement, stay at home wife, and lives in San Francisco, makes $150K per year. Example #2 - 45 year old, owns home, single, decent amount of savings and retirement, lives in rural TN and makes $120k per year. Using the "rules", example #1 should buy the more expensive car but reality is should be driving the least expensive transportation he can find.
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08-22-2016, 12:50 PM | #105 | |
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I learned this recently from my father in law and our own household. My rental is basically covering all but $1000 per month of costs for the property, including property taxes. I'm also living in parts of the rental property too, so basically my monthly housing is $1000 after property taxes. This is just cash flow perspective here, not even counting the property appreciation, which I will never realize b/c I likely will never sell. Btw, if we were to move out of our rental property, the net would be zero after property taxes, possible eek out a gain. (Again, not a reality b/c still need a place to live) My father in law is in one sweet fucking situation with his passive income. He owns a 4-unit apartment building (not rent controlled). From rental income alone, he grosses $100k a year. Assume after property taxes, insurance and upkeep, he clears $70k before income taxes. Needless to say, he doesn't have to work today, but he still does and likely clears a good $100k of gross income in his job too...just fucking amazing. Oh, don't even think about property appreciation, he could probably retire forever if he decides to sell, I'm thinking the full building is worth north of $12-$15m today (depends on your IRR assumption).
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08-22-2016, 12:51 PM | #106 |
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and I drive a 10 year old Civic M3...it's not even ZCP!
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08-22-2016, 12:53 PM | #107 | |
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But if you are making 100k/year and looking at cars, starting at 30% gives you a good perspective. |
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08-22-2016, 12:54 PM | #108 |
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And you couldn't even afford that last 1.5 PSI of air. To be fair, with all four tires, your savings is 6 PSI, so there is that...
(For all the pedants, I know it is still 1.5 PSI, but it is really the volume to achieve the same pressure in all tires that would be 4x, but that would have been to complicated. #jokefail)
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08-22-2016, 12:57 PM | #109 |
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it's a bunch of savy people in this thread. It really trips me out when I hear the default rate is close to 30% on student loans.
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08-22-2016, 12:58 PM | #110 | |
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Do you even Ideal Gas bruh? Glad you ain't designing my Michelins!
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