what to do? what to do?

[silligecko]

So I got a pay raise at work... yay for $7,512 more a year!!!! :) Now I can start saving to buy a house. Oh how I want to buy a house (or condo) and have a real place of my own. Problem is, that shit's expensive out here

Comments

[bethgirl]

speaking as someone who is still living in an apt and drives old beat up cars, i would have to advise saving up for the house. you will get more value out of a house, it will probably improve your credit (which might even improve financing on the car!), as as a bonus, there will most likely be even cooler cars in a few more years.

of course, if you look at your budget and think you have enough wiggle room to get the car AND save for a house, then go for it.

congrats on the raise BTW, that's awesome!

[line21]

yay - for raises! That's awesome, I wish I got a raise (your raise is roughly 5 months of take home pay for me).

do both!?
save a little for a down payment on a house (you don't actually need a huge down payment - because the federal government through FHA has a program for first time home buyers. If you can't make a big down payment they will pay your mortgage insurance until you've built up sufficient equity)... then you can also get a 110% mortgage (or something over 100%) which you'll probably get a better rate on the money than on a car loan since you are getting a LOT of money and use that extra money to buy your car? (sounds good on the paper in my head - don't know if it will look good on actual paper or not?)

It might help to consider the "negative" equity as part of the price of the new car - considering that price, is the car "worth it" to you? I mean I guess you're already thinking about it that way, I don't know?

good luck. and congrats again.

Negative.....

[tcflyer]

Speaking from the perspective of actually selling cars, Negative equity is killer. Buying a new car is great but in three years if you decide this new car is getting passe and its time to roll into something new, then you will be carring equity from both the Lancer and the Civic. But Kevin has a good point as well, if its worth it to you then by all means get the can and put a little away for your house. I am in the process of looking for a house now too and I know exactly the concerns your talking about.

WEll I hope I was helpful, but next time come see me when you buy a new car ;-)

Give me a call or an email some time I'd love to catch up!