pay off house or spend more on car?

[sexc351]

hi guys im in bit of a dillema .i am just building my first house.it has no car port or garage as yet(will build slowly as more cash comes available).now heres my dillema i have a pretty sweet xc ute thats garaged all the time.i do have 20 grand to build a new 12x7.5 shed.also looking at buying new car(coupe or cortina or something) and selling ute.should i just sell the ute and forget about cars for a couple of years and whack the 20 on the house and get the loan down to as little as possible or stuff it build the shed and get a new toy.i have got heaps of o.t on at the moment to do both but am thinking what happens if all the o.t stops im back to stuggling.i just dont know how i will cope without having a toy for a few years.thanks luke

[RG]

Pesonally I'd put it into the house, not so much paying the loan but maybe building the shed/garage and doing anything else that will make it worth more and be more desireable come sale time.

[|||]

go the car. one you sell them to fund a house its hard to get them back. especiallly if you have a mrs that counts the pennies.

how many times have you heard "yeah i had one of those once. sold it to fund a house. worst thing i ever did"

[3vXT]

I'd put most of the money into the loan.
Any extra money you throw at your house early (or your loan more specifically) will make a big difference to the time it takes to pay it off.
i.e 10K extra off your loan early, will save you more than 10K in the long run. Improving your house raises the value the same way but you don't get anything back until you sell it.

On the other hand you have to have some kind of life, don't put it all away. If you spend your life waiting for the rainy days you'll miss the sunny ones

[cuz]

Keep the ute, use the money to build a shed and dump all your overtime into your loan.
You'll still have your toy, a more desirable house and room to move in the future.
Either way, good luck

Just my 2c...

[jaydee]

Put a roller door on the lounge room wall, problem solved, no need to thank me.

[EA2BA]

I was going to say, the house wins

BUT

Its an XC Ute - DO NOT SELL you will never get another XC Ute.

[Riksta]

Originally Posted by EA2BA

I was going to say, the house wins

BUT

Its an XC Ute - DO NOT SELL you will never get another XC Ute.

I agree, put whatever you can into the house without running yourself too short, but don't get rid of the ute.

[XYGTHO]

I'm in the same dilema mate. Just bought my first house. Loan of 206g with repayments of $762 a fortnight. I make $1470 a fortnight now and can't get overtime. So yer not heaps left for bills and general living but doable.
I have an XY i could get $30g for and put $10g into the loan and reduce my repayments to $670 a fortnight, spend about $10g on a nice clean V8 XE or something and keep $10g in the bank as i'm only 22 and would like to go overseas or do a little traveliing with my girlfriend. She doesn't want me to sell the XY as she knows i love it but it doesn't get driven. At least if i had an XE i wouldn't stress leaving it parked, can have fun in it and parts a cheaper. XY stuff is over my head now.

Therefore i say get the house outta the way and then you'll be stress free to play with toys. LOL. I still don't know what i'm going to do so i'm not much help unfortunately. Doesn't help loving cars so much.

[boss-290]

HOUSE HOUSE HOUSE HOUSE HOUSE!!!!!

Plenty of time later to play cars!

[Shaggzy]

Car for me you cant look cool driving your house around can ya!!

[Kryton]

agree with everyone else.
build the shed, park the car in it and put the rest into the home loan.
not really too hard to figure out.
OR
if you really want another car, sell the ute and use only that money for the next car.
you still have your house, you have a new shed and you have another car all without costing you any more than the price of a shed.

[jimmy_c]

Originally Posted by davway

agree with everyone else.
build the shed, park the car in it and put the rest into the home loan.
not really too hard to figure out.
OR
if you really want another car, sell the ute and use only that money for the next car.
you still have your house, you have a new shed and you have another car all without costing you any more than the price of a shed.

Do it this way. Pay your house loan down. or redraw some and get a cheap car loan !!

[4Vman]

HOUSE, no question... The interest you'll save alone will cover toys down the track a bit.

[ORSMXR.]

i say pay teh house off, you can always borrow on your house to spend on your dream ride, i have done several times hahaha

[XYGTHO]

Originally Posted by 4Vman

HOUSE, no question... The interest you'll save alone will cover toys down the track a bit.

Yep, i worked out if i put a lump sum payment of $10,000 down on my loan it would save me $80,000 in interest and like 5years or more on the loan. Thats why i'm also tossing up what to do. Mate i think the smart thing to do is put it into the house. But we don't always follow our brain. I'm following my heart at the moment and keeping it for the time being.

[4Vman]

Originally Posted by XYGTHO

Yep, i worled out if i put a lump sum payment down on my loan it would save me $80,000 in interest and like 5years or more on the loan. Thats why i'm also tossing up what to do. Mate i think the smart thing to do is put it into the house. But we don't always follow our brain. I'm following my heart at the moment and keeping it for the time being.

I spent the first 6 years of my working life paying of an investment property and setting myself up, then when that was going smoothly i got into buying toys like motorbikes, cars, ski boats etc.. allot of my friends did it the otherway round.. toys first, house second.. most struggled.. allot of them still have their toys but are still renting..

[XYGTHO]

Originally Posted by 4Vman

I spent the first 6 years of my working life paying of an investment property and setting myself up, then when that was going smoothly i got into buying toys like motorbikes, cars, ski boats etc.. allot of my friends did it the otherway round.. toys first, house second.. most struggled.. allot of them still have their toys but are still renting..

Smart move mate. Thats what i want to avoid as i'd like to afford a family etc one day without struggling to much. I know a nice V8 XE would satisfy me. My father has a XY GS i might be able to pry off him in the future. LOL. Anyone got a neat V8 XE for sale?

[Duke]

My rule:
Put money into appreciating assets, not depreciating assets...
Until the appreciating assets are giving you more than enough income or equity to comfortably allow you to play with whatever you want.

Postpone your pleasure now and you'll have more than you dreamed possible in the future.

[fmc351]

Dump it into the loan... use the OT to build a shed, then slowly build car. Dont reduce loan payments or it somewhat defeats the purpose. At least if the OT does drop off, you can bring the payments down if need be a lot easier.

[SB076]

Interests rates are tipped to raise again early next year and may continue to rise, I would put the money into the home loan, as this will lower your interest repayments (athough I would keep paying as much off as possible) as ultimately you will be able to do more mods to your car - once your mortgage is down as low as possible or paid off entirely (if thats possible)

[sprjenkins]

Put up a tarp and spend the money on the car

[XW 393]

You can sleep in a car.

[Falcon Freak]

Pay of the house. It be give you a better return in the long run.

FF

[Bent8]

I think house prices will continue to rise while the stock market continues to go down the toilet, paying off your loan isn't that important right now because you can always sell up and rent a place, then put any remaining cash in the bank (bad idea because banks are only required to hold 10% of all deposits) or buy some physical gold (very good idea) in your possession for when we hit another artificially manufactured depression, because money is essentially worthless, it's not backed by anything, but gold will always have a value.

My advice: enjoy your money now while it's still worth something

My 2c worth

[Elks]

Keep the XC*, it is also an appreciating asset at this time. Build a shed (this will add value to your home) and put the XC in it.

Buy a jalopy of some sort that's cheap to own & run. use it to get to and from work in a cheap stress free manner. Buckle down and do the OT for the cash. Pump that into the loan. when it all gets hard, go to the shed, rip the blanket of the xc, and go for a cruise . It's called balance.

To point in having it all later, ask Crazy John (yes he was lucky and had it now).

For gods sake don't go and buy a new XR6, lovely as they are, which will be worth 1/2 what you paid in 2 years.

*The XC can be traded for any similar appreciating fun car at any time.

[B-Series]

I'd pay off the house first. Invest in property and reap the rewards later.

[Full Noise]

Originally Posted by EA2BA

Its an XC Ute - DO NOT SELL you will never get another XC Ute.

Can someone please explain to me what is so special about an XC ute?

Originally Posted by BMX_datto

Car for me you cant look cool driving your house around can ya!!

No, you can’t. However, living in a car doesn’t suit everyone either.

[EA2BA]

You can ALWAYS sell the ute later if need be, you sell it now and don't really need to, you will regret it.

[Dark Horse]

Interest rates are going up, you want the mortgage to go down. It basically boils down to you or the car.

Why live life for a car?