If you had a choice?

[440]

If you had a choice what would you do?

Move up into a once in a lifetime lifestyle property knowing you couldn't do (afford) much car hobby stuff for quite a while.

Or

Move further out into a decent property where you could afford to finish your current car projects and set yourself up with a better equipped home workshop ?

[marshallfry01]

The second choice.

[70 sublime]

So either sell all my stuff ( including where I live and car toys ) to get a fancy place to live ( to also have a happy wife ? )

OR

Just sell where I live to get a bigger place out farther from all my friends and have lots of room to play with cars and have a little cash left over to use on the cars stuff ?


If there is a wife I would do the fancy place move ( she will enjoy it too)
No wife I would get the bigger shop and lots of car stuff    

[440]

You can keep everything that you currently have, but there's no extra cash to spend on your current projects, at least not for a while.

[Bob]

#2

[tan top]

Move further out into a decent property where you could afford to finish your current car projects and set yourself up with a better equipped home workshop ?

this !  

[Ghoste]

Number two.  I tried number one and eventually that didn't work out.

[funknut]

I recently took the first option knowing that the place we found was truly a once in a generation, if not a once in a lifetime, opportunity. 

My car doesn't *need* much right now.  It runs and drives well and has a dry spot in the garage.  I'll still have budget for maintenance and repairs, but significant upgrades or tools are going to be on hold for a while.  So, my point is I get to enjoy my car.  If it were a project in pieces that was going to sit for years before I'd get to do anything with it except stare at it in frustration, that might be a different consideration.

Also, I'm still in the front half of my career with some additional earning potential ahead of me, so while we're stretched a bit thin right now, I know it won't be forever.

[JB400]

The one that made me the happiest.

[440]

Interesting the majority say #2

#1 is amazing and there's no way you'd be able to buy/build anything like it again. The potential for an awesome home workshop is there, but money would be too tight to "splash out" on larger ticket items.

#2 would be comfortable, but #1 would always be in the back of your head 

[Kern Dog]

Is place #1 a nudist colony with twentysomething women???
If no, I'd choose #2.

[Old Moparz]

If number two fits your current lifestyle, your future lifestyle that may include kids, fits your budget & it also allows you free time for your hobby, then it sounds like a no brainer by going with this one. If your age is up there or you're a couch potato that can't climb stairs without being out of breath then a simple home that's easy to deal with is what you want, or need. I'm not sure what you mean by "A once in a lifetime lifestyle property" but I am guessing that it's a fancier house? Something that's more upscale? If that's what you prefer in a house then you won't be happy with the first one if you need to keep up with, or surpass the Jones & kick their asses with curb appeal. 

Keep this in mind about choosing number one. If something financially catastrophic happens to you, like job loss or the economy tanking again, you can probably remain in your house taking a job or two doing almost anything to pay bills. If you end up needing unforeseen, major repairs on the building, the upscale home is naturally going to cost you a lot more especially if you have to hire someone to do it. What about taxes? Did you look into both? I saw a house before I bought mine where the taxes were so effin' high that the amount taken into escrow each month was about 30% higher than the loan. 

I know people that have bought beyond their means thinking that they'd be okay. They were okay living paycheck to paycheck until they had been foreclosed on once finances went to hell.

[pipeliner]

Dont put yourself in a bind. Working for just a mortgage payment will make you guys miserable. I worked my butt off and payed about $70k down on our place to get our payment lower and also a shorter term while still allowing us to have newer cars, awesome vacations and so forth. Living paycheck to paycheck sucks!

[440]

I live paycheck to paycheck only because I squander the rest on car/shop stuff    it does suck at times when something goes wrong but it's what I'm used to. Said car/shop money would have to go towards the higher mortgage. Initially things will be quite tight till our current house sells.

A better property is probably a better long term financial decision compared to spending it on "hobby" stuff. Even through the GFC minimum growth was still 3%

We are looking at moving so this is a real fork in the road of life.

[crj1968]

Take the property- there is no shortage of toys out there...........

[Tilar]

I would settle for a decent property where I could afford my toys. To me, a fancy place is nothing more than a feel good when comparing achievements at a class reunion. If the wife doesn't want to go along with it, maybe you can still setup conjugal visits

[Alaskan_TA]

I went with choice 2 for myself & there is still never enough money to do all I would like.

Time & patience.

I am very happy with my choice.

[Charger RT]

I guess I took option 2 without knowing it. Option 1 doesn't interest me. First of all I feel very uncomfortable in a new house or upscale house. I'm afraid to touch anything. Afraid I'll stain the furniture or mark a wall. My current house that i bought in 2002 was built in 1935. The house I sold at that time was built in 1920. Both are sound homes with plaster walls that look old and feels comfortable. I did build a garage here with a bigger foot print on the property then the house does. I pay cash for cars because I could not bear to have a car payment higher then my mortgage.

This has worked well for me and I sleep well at night. I hope you make the right decision that works for you.

If I ever hit the lottery for big money I will buy a big old house and build a much bigger shop or shops.
Tim

[GreenMachine]

I chose #2, but if I had a chance to get an upscale house for well under market value, I'd probably do that. Then sell it in a year or three.

Remember, all your bills will go up too: utilities, insurance, and especially taxes.

[triple_green]

If you assume that the house opportunity will increase your net worth more in the long run, then you can assess if delayed gratification (car stuff) is worth having more than net worth in the long run.

I love my Charger, but if I had an opportunity to make 3 times the amount of money by selling it and putting my money somewhere else, I would do it in a heartbeat!

3X (Financial Planner)

[boss429kiwi]

Life is about "Balance".

[Laowho]

Move somewhere 3d-world-ish, rent a town, open a chop-shop, and anarcho-syndicalist the **** out of the place. It ain't all heart of darkness out there.

[Ghoste]

Life is about "Balance".

[ralley72]

Move farther out, I did and love it. built a small house and nice barn. No going back to city life for me.

Mike

[morepower]

#2

[RiverRaider]

The second choice. 
I know far too many people who are "house poor" they make good money but bought the mega
dream house and have no spending money.  If this place cuts into the car hobby it will also limit other spending.

[Fred]

I say go with #1. If you've got your heart set on it)
At the rapid rate real estate prices are rising you need to take advantage while you still can. You may never get another opportunity. Prices are going through the roof and what you can get for your money today......you won't be able to get for the same money tomorrow.

[440]

The rapid rising real estate prices aren't really in our favor and there's no telling if they will continue to rise. Our state hasn't had much growth over the years and it could either be a great decision or a bad one pending the real estate market in the coming years. This property is twice the average so as an investment/return it's probably not the smartest short term option. From what I can tell value for money is second to none but will stress us financially for about 6 months untill we sell, move interstate, and settle.

If only there was a crystal ball to look into the future a few years to see which way the path travels.

[Fred]

If only there was a crystal ball to look into the future a few years to see which way the path travels.

If there were..........we'd all be better off!  


Which State? (if I may be so bold as to ask)

[Tilar]

The rapid rising real estate prices aren't really in our favor and there's no telling if they will continue to rise. Our state hasn't had much growth over the years and it could either be a great decision or a bad one pending the real estate market in the coming years. This property is twice the average so as an investment/return it's probably not the smartest short term option. From what I can tell value for money is second to none but will stress us financially for about 6 months untill we sell, move interstate, and settle.

Our real estate is way up. I bought two houses back in 2012 and 2013 and could easily double my money on them now. A really small house next door to my residence was appraised at 42,500 4 years ago and sold for 82,000 a couple months ago and it's not half the size of any of my houses and it sits on a really small lot... It's nuts.

[Fred]

It's the same here in Melbourne. People living in the inner suburbs are raking in the dollars no matter the state of the property for sale. It's all about land value.

[440]

We'd be moving from SA to VIC. Even here in SA a property (shack) on the esplanade was a 700k knock down and rebuild situation.

The sad part is we looked at buying a house in Victoria a few years before the boom, we would have doubled our money now in the same time period had we bought that place then.

[Fred]

But you'd only double your money if you sell and skip town......move to a third world country. Otherwise it's been my experience that when you sell one property to buy another, the new property generally costs as much if not more.

Even so Vic is a great place to be. (as no doubt your wife can attest)  It certainly is our (the Mrs. and I) favourite State. Wouldn't live anywhere else.
Hope all goes well for you.  

And if you lose your ducks..........there are plenty more to be had. They're here all year round and rarely fly the coop.

[Fred]

See, I told you................

[Paul G]

I say a lot depends on your age. If you are young you have time to reach out for that dream house. Being poor when you are young is doable knowing your earning potential will eventually rise and take you out of that self inflicted poverty.

If you have more years behind you than in front, a different story. Being house poor in middle age or older will suck bad.