It sucks not to be able to afford a house and two nice cars at the same time.

Page 6 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Originally posted by: SagaLore
WOAH that is nice! :shocked: I take back what I said - get that house. :D It's in cayuga county - is that near Cayuga lake?

It's a few miles west of it, about half-way down.
 

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
Originally posted by: Jumpem
Originally posted by: SagaLore
Holy crap, my wife and I combined make half of that, we own our place and own decent cars.

Actually to be honest, we sold our house a year ago because we didn't like the limited cash flow and it was hard paying off what debt we had. So we bought a 2br mobile for really cheap, put it on a lot with cheap lot rent, and paid off all our debt within 6 months. Now we're putting everything into savings so we can have at least a 20% downpayment on our next house. My wife has a 97 honda civic and likes her car, I got a really good deal on my 04 Dodge Neon - both cars are standards and economical on gas.

Maybe you're trying to live too high a standard of living? My suggestion is wait on getting a house. Pay off all your credit card debt (don't worry about school loans), and save up for a down payment. Learn to budget your money. Don't buy unreasonable cars.

I'd like to emulate you. I'm thinking about putting our cars up for sale and getting cheaper ones. The main thing killing our budget beside the cars is CC debt and student loans. Like I've said, those combined are probably $15k year we'll be paying.

We are actually in a similar boat. We own a house, two cars, and have student loan debt, basically no CC debt short of stuff on my HD CC that is 0% interest for 12 months.

We are looking to sell our cars and buy junkers for now because I want to see that student loan debt gone. I don't mind the federal loans, because the interest rate is 2.875%, what bothers me is the variable private loans at 6%.
 

SagaLore

Elite Member
Dec 18, 2001
24,037
21
81
Originally posted by: Jumpem
Originally posted by: SagaLore
Holy crap, my wife and I combined make half of that, we own our place and own decent cars.

Actually to be honest, we sold our house a year ago because we didn't like the limited cash flow and it was hard paying off what debt we had. So we bought a 2br mobile for really cheap, put it on a lot with cheap lot rent, and paid off all our debt within 6 months. Now we're putting everything into savings so we can have at least a 20% downpayment on our next house. My wife has a 97 honda civic and likes her car, I got a really good deal on my 04 Dodge Neon - both cars are standards and economical on gas.

Maybe you're trying to live too high a standard of living? My suggestion is wait on getting a house. Pay off all your credit card debt (don't worry about school loans), and save up for a down payment. Learn to budget your money. Don't buy unreasonable cars.

I'd like to emulate you. I'm thinking about putting our cars up for sale and getting cheaper ones. The main thing killing our budget beside the cars is CC debt and student loans. Like I've said, those combined are probably $15k year we'll be paying.

Based on what you're making, if you do that, and stick to a budget and put everything into savings for the next few years, you'll have much more than 20% down payment for a nice house. Ideally what I want to do is have at least 50% towards my house, and get a 15 year mortage - which will really cut down on total interest paid. But my wife's biological clock is ticking so I don't know if I can wait that long. ;)
 

fLum0x

Golden Member
Jun 4, 2004
1,660
0
0
its all about living in a 5 by 5 cardboard box with a computer, milk crate, and broadband running out of it
 

mugs

Lifer
Apr 29, 2003
48,924
45
91
Originally posted by: Jumpem
Originally posted by: mugs
oi... your bad decisions make my head hurt.

Expound on what exactly my bad decisions are. I know I've made them, but what in particular are you pointing out?

They've been pretty well covered by everyone else. You and your girlfriend may think of yourselves as more or less married, but the fact is even many marriages end, and it's a lot easier to get out of a dating relationship than to get divorced. Not to mention the legal implications of being married vs. not married. If you were to buy a house together and then break up, it would likely be a huge mess. Not to mention you could lose out big time if you have to sell the house within a couple years of buying it.

The cars were a huge mistake. Yeah, so your girlfriend had an unreliable car in college, it's understandable to want a more reliable car. But you bought two expensive Subarus when you could have gotten two reliable used cars for 1/4 as much. Fine, forgo buying a house if driving a nice car is more important to you, but you did this while she still has credit card debt? You wouldn't take a 20% loan on a car, would you? So why take money that could be put toward a credit card and spend it on a car?

And when you justified her credit card debt by saying it was what she had to do because she was going to an expensive school with no help from the parents - well that just made me chuckle. If you can't get help from the parents, don't go to a school you can't afford... And I may be wrong here, but I thought student loans could cover room and board in addition to tuition, so you'd think her additional expenses could be covered by a part time job.

Now, I can understand how you'd make bad financial decisions, because your parents are poor and obviously couldn't teach you how to manage your money better. But there have been enough threads here about these topics that I'd have hoped you would have learned by now. :)

Anyway, good luck figuring out what you're going to do, hopefully if you sell the cars you won't have to take too much of a loss on them. Don't spend a fortune on the ring, have an inexpensive wedding (you don't HAVE to spend the average of $20,000 that people usually spend these days), and don't have kids until you are financially able to support them. Consider that in your house buying decision too.
 

mugs

Lifer
Apr 29, 2003
48,924
45
91
Quick questions: how much are her CC balances, are you paying more than the minimum payment each month, and have you paid attention to how much the balance goes down each month?
 

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Originally posted by: SagaLore
Based on what you're making, if you do that, and stick to a budget and put everything into savings for the next few years, you'll have much more than 20% down payment for a nice house. Ideally what I want to do is have at least 50% towards my house, and get a 15 year mortage - which will really cut down on total interest paid. But my wife's biological clock is ticking so I don't know if I can wait that long. ;)

It'd be nice to wait until I have $40k to put down, but that could take a number of years.

I really like this house we looked at. It's even nicer in person. I would be willing to cut back other things, and be tighter than I'd like for a year or two to get it.

If it turns out to not be doable, then I'll keep renting for another year or two and pay off debt. Maybe get married too. But I'd have to keep renting for at least a few years to have much of a downpayment saved up.
 

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Originally posted by: mugs
Quick questions: how much are her CC balances, are you paying more than the minimum payment each month, and have you paid attention to how much the balance goes down each month?

We've been paying more than the minimum. We paid off a handful of store cards with relatively low balances. She has a card left with about $7500, and one with I think $2-3k.

I haven't been watching the balances each month. I just made a list of them and what their APR's are. I've been putting extra towards the highest ones.
 

mugs

Lifer
Apr 29, 2003
48,924
45
91
Originally posted by: Jumpem
Originally posted by: mugs
Quick questions: how much are her CC balances, are you paying more than the minimum payment each month, and have you paid attention to how much the balance goes down each month?

We've been paying more than the minimum. We paid off a handful of store cards with relatively low balances. She has a card left with about $7500, and one with I think $2-3k.

I haven't been watching the balances each month. I just made a list of them and what their APR's are. I've been putting extra towards the highest ones.

Good work.
 

mugs

Lifer
Apr 29, 2003
48,924
45
91
Originally posted by: SagaLore

Based on what you're making, if you do that, and stick to a budget and put everything into savings for the next few years, you'll have much more than 20% down payment for a nice house. Ideally what I want to do is have at least 50% towards my house, and get a 15 year mortage - which will really cut down on total interest paid. But my wife's biological clock is ticking so I don't know if I can wait that long. ;)

Just realize that $1 != $1. Yeah you pay a lot more in interest on a 30 year loan, but when you throw inflation into the equation it's not nearly as bad as it looks. And when you throw in the other things you COULD do with your money, a 30 year loan could make more sense, depending on the interest rate, your discipline with your money, and where you invest your money. If you only want to deal with guaranteed rates, yeah a 15 year loan is the better option.
 

CrimsonChaos

Senior member
Mar 28, 2005
551
0
0
Don't listen to these people talking about marriage. If you're in the right relationship, then you're probably already "married" in your mind. Contrary to what has been said here, marriage does NOT make separating easier. Whether or not you're married, it's not easy splitting off from someone who you've spent so many years with and making mutual purchases and choices with.

Marriage is simply a legality. And when does "legalities" ever simplify anything? I'm not saying marriage is a bad thing, but it definitely isn't a priority. If you don't trust that you or your girlfriend will stay committed, then you aren't with the right person to begin with. Concentrate on fiscal responsibility first -- then worry about marriage.

Also, I realize this is the "house of your dreams", but you also said it was appraised at $110,000 -- about $50K below asking price. I would highly advise against overspending by $50K for any house, even if it is the house of your dreams. Do you have any idea why it's being listed so overpriced?

 

Viper GTS

Lifer
Oct 13, 1999
38,107
433
136
Originally posted by: Jumpem
Originally posted by: mugs
Quick questions: how much are her CC balances, are you paying more than the minimum payment each month, and have you paid attention to how much the balance goes down each month?

We've been paying more than the minimum. We paid off a handful of store cards with relatively low balances. She has a card left with about $7500, and one with I think $2-3k.

I haven't been watching the balances each month. I just made a list of them and what their APR's are. I've been putting extra towards the highest ones.

Just like to point out that 6 months of driving old(er) cars with liability only insurance & you'd probably save enough to pay off all that CC debt.

My car costs me $63 a month in insurance (liability + comp, no coll). That's it. Everything else is strictly based on use. You've got to be putting out what... 10x that for the STi alone?

Viper GTS
 

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Originally posted by: CrimsonChaos
Don't listen to these people talking about marriage. If you're in the right relationship, then you're probably already "married" in your mind. Contrary to what has been said here, marriage does NOT make separating easier. Whether or not you're married, it's not easy splitting off from someone who you've spent so many years with and making mutual purchases and choices with.

Marriage is simply a legality. And when does "legalities" ever simplify anything? I'm not saying marriage is a bad thing, but it definitely isn't a priority. If you don't trust that you or your girlfriend will stay committed, then you aren't with the right person to begin with. Concentrate on fiscal responsibility first -- then worry about marriage.

Also, I realize this is the "house of your dreams", but you also said it was appraised at $110,000 -- about $50K below asking price. I would highly advise against overspending by $50K for any house, even if it is the house of your dreams. Do you have any idea why it's being listed so overpriced?


No idea why it's listed so high. But the better question might be why is it appraised so low? The price seems reasonable for the houses around here.
 

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Originally posted by: Viper GTS
Just like to point out that 6 months of driving old(er) cars with liability only insurance & you'd probably save enough to pay off all that CC debt.

My car costs me $63 a month in insurance (liability + comp, no coll). That's it. Everything else is strictly based on use. You've got to be putting out what... 10x that for the STi alone?

Viper GTS

Probably more than only six months, but I definitely agree with your point.

Yeah, the STi is $528 plus $100 for insurance. If I got rid of it I could save some money. I'd still need to have a car payment for something else. Even if it was a cheap car for $150 a month. Then I would still need full coverage on it. so I could save money, but I'd still be spendin 1/3 to 1/2 what I am now.

 

Viper GTS

Lifer
Oct 13, 1999
38,107
433
136
Originally posted by: Jumpem
Originally posted by: Viper GTS
Just like to point out that 6 months of driving old(er) cars with liability only insurance & you'd probably save enough to pay off all that CC debt.

My car costs me $63 a month in insurance (liability + comp, no coll). That's it. Everything else is strictly based on use. You've got to be putting out what... 10x that for the STi alone?

Viper GTS

Probably more than only six months, but I definitely agree with your point.

Yeah, the STi is $528 plus $100 for insurance. If I got rid of it I could save some money. I'd still need to have a car payment for something else. Even if it was a cheap car for $150 a month. Then I would still need full coverage on it. so I could save money, but I'd still be spendin 1/3 to 1/2 what I am now.

The whole point of an older car is that you buy it outright.

How much of the STI do you own? Unless you're upside down if you can walk away with 2-3K you can get a perfectly decent vehicle for that. Not an STi of course but you can get a mid 90's Impreza for that.

Viper GTS
 

Kerouactivist

Diamond Member
Jul 12, 2001
4,665
0
76
I think I'll drive my 1997 buick century until the wheels fall off...then by a used hybrid when the time is right,,,
 

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
Originally posted by: CrimsonChaos
Don't listen to these people talking about marriage. If you're in the right relationship, then you're probably already "married" in your mind. Contrary to what has been said here, marriage does NOT make separating easier. Whether or not you're married, it's not easy splitting off from someone who you've spent so many years with and making mutual purchases and choices with.

Marriage is simply a legality. And when does "legalities" ever simplify anything? I'm not saying marriage is a bad thing, but it definitely isn't a priority. If you don't trust that you or your girlfriend will stay committed, then you aren't with the right person to begin with. Concentrate on fiscal responsibility first -- then worry about marriage.

Also, I realize this is the "house of your dreams", but you also said it was appraised at $110,000 -- about $50K below asking price. I would highly advise against overspending by $50K for any house, even if it is the house of your dreams. Do you have any idea why it's being listed so overpriced?

No bank would give you a loan that was worth more than the house is appraised at.
 

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Originally posted by: Viper GTS
The whole point of an older car is that you buy it outright.

How much of the STI do you own? Unless you're upside down if you can walk away with 2-3K you can get a perfectly decent vehicle for that. Not an STi of course but you can get a mid 90's Impreza for that.

Viper GTS

I know that's the point, but i don't have a ton of cash sitting around right now. If I could sell the STi for what I paid ($28k), I'd have probably $2k left over.

 

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Originally posted by: iamwiz82
No bank would give you a loan that was worth more than the house is appraised at.


I know, that's what the mortgage people have told me. Is there a difference between "real" appraisals, and those done by county property tax offices?
 

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
Originally posted by: Jumpem
Originally posted by: iamwiz82
No bank would give you a loan that was worth more than the house is appraised at.


I know, that's what the mortgage people have told me. Is there a difference between "real" appraisals, and those done by county property tax offices?

Yes, the county ones are usually significantly less than a "true" appraisal. My house differences by almost $30,000.
 

Aquila76

Diamond Member
Apr 11, 2004
3,549
1
0
www.facebook.com
Originally posted by: Jumpem
Originally posted by: iamwiz82
No bank would give you a loan that was worth more than the house is appraised at.


I know, that's what the mortgage people have told me. Is there a difference between "real" appraisals, and those done by county property tax offices?

Hell ya! I work at a foreclosure law firm (MA only, no worries for you;)), and a property appraisal and the town's valuation are $$$$ different. The town only cares about taxation purposes, not actual value. Town taxes generally only take into account the land area and not necessarily the house or it's condition. A professional appraisal includes the house, yardwork, number of rooms, baths, quality of such, etc. and compares it to at least three other homes in the area to rate it against. The difference can be more than double the town's rate in some cases.
 

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Originally posted by: iamwiz82
Yes, the county ones are usually significantly less than a "true" appraisal. My house differences by almost $30,000.

Ok, that's the difference then. The realtor gave me the tax appraisal.
 

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
Originally posted by: Jumpem
Originally posted by: iamwiz82
Yes, the county ones are usually significantly less than a "true" appraisal. My house differences by almost $30,000.

Ok, that's the difference then. The realtor gave me the tax appraisal.

My tax appraisal is lower than the county appraisal, also. :p

So, in my case:

True appraisal > Assessed Value = State Equalized Value > Taxable Value

All in all, the difference for me is almost 300% between taxable and true.