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2010 2011 BMW 5 Series Forum F10 Your Salary |
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View Poll Results: Your salary? | |||
Under 50,000 | 13 | 9.29% | |
Between 50,000 - 100,000 | 34 | 24.29% | |
Between 100,000 - 150,000 | 37 | 26.43% | |
Between 150,000 - 200,000 | 11 | 7.86% | |
Between 200,000 - 300,000 | 19 | 13.57% | |
Over 300,000 | 26 | 18.57% | |
Voters: 140. You may not vote on this poll |
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07-15-2014, 02:24 PM | #89 | ||
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Mr A pays £2000 per month for a mortgage for a house that's worth, say, £400,000. Mr B pays £2000 per month in rent for Mr Cs house that's worth £600,000. In 25 years time, Mr A has paid a total of £600,000. In 25 years time, Mr B has paid the same. Over 25 years, the capital value of Mr A's home has increased to £980,000 (what inflation has done in UK over last 25 years). Mr A has increased his wealth by £580,000 and has mortgage free home. He now pays nothing to live in his own house. Mr B has has nothing apart from more £2000 per month payments to make (not allowing for inflation!) and a very happy Mr C who has over £1m in the bank thanks to Mr B paying Mr C's mortgage for 25 years. Who is the saddest person 25 years down the line? Mr B! The moral of the story? Owning property is financially AND lifestyle wise the better choice. I thank you. |
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07-15-2014, 03:37 PM | #90 | |
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Now this does depend a lot on the market. A lot of people lost a lot of money in the wake of the 2009 financial crash when they were forced to sell their home. But usually the long term investment in property is profitable. i was lucky, I bought an apartment in 04, sold it in 11, by then it had doubled, this allowed me to buy a house. The market has not had the same increase since I got my house, but regardles, I expect it to increase over the next few years. In 20 year it is paid for, and by then it is probably worth double or more of what I paid for it. Buying and not renting a place to live is the best financial option. A car, well, that is just a consumer toy |
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07-15-2014, 03:50 PM | #91 |
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Fellas, not one of you/us needs to be driving such an expensive vehicle. It's just what we want because we can. Regardless of income, we're all guilty of indulgence. Want it. Don't need it.
Move on.
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Last edited by Sum1.; 07-15-2014 at 07:26 PM.. |
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07-15-2014, 05:26 PM | #92 | |
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"C'mon MENG" Last edited by noixd; 07-15-2014 at 05:32 PM.. |
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07-15-2014, 05:33 PM | #93 | |
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Mr A still has a house worth £980.000, Mr B has.......nothing. Mr. A can sell his house, rent a smaller apartment and enjoy a nice retirement. Mr. B has to continue to rent and has no extra retirement money. Mr. C has two houses to sell an can do what ever he wants. And that is why owning property is better than renting, property always has a value, renting a place to stay just fills up someone elses "savings account". You cant look at cost alone, you also has to look at the assets. All the other expenses you mention are covered by the rent you pay, so in a way you are paying those things every month. In my case I dont pay property tax, because we don't have that, and even the places that do it's just £1000 a year on average. Also, I get a 28% tax break on my mortgage interest, which means I pay less tax than someone who is renting (same income assumed). So less tax, paying on something you will eventually own and that is not depreciating. Sorry, I dont see any disadvantage to owning here, quite the oposite in fact. |
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07-15-2014, 06:44 PM | #94 |
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07-15-2014, 09:18 PM | #96 | |
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Dumbest post ever.
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07-16-2014, 12:02 AM | #97 | |
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07-16-2014, 02:50 AM | #98 | |
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This is a realistic example btw, except I had the opposite happen to me. For family reasons, I moved from Texas into a part of the country where houses cost 3 times as much, without a significant increase in compensation. Unless I get more money, I don't see how I can afford another BMW. I would argue, where you live has a lot more to do with how much you can spend on your car than your salary. You might be able to purchase a car that's worth 50% of your salary in Texas... And in another state, you might only be able to spend 5% of your salary. And it's possible that the person in Texas is putting more money aside for retirement...even with that large car payment. While the person in California, having the same salary, might not be able to put any money towards retirement. |
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07-16-2014, 10:34 AM | #99 |
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There are many variables in peoples financial situations and until one knows another persons situation completely, any advice on how they should invest their money should be considered academic.
Case in point, a friend was told by several people "buy a home, live the American dream". He decided instead to put the money into his business and it paid off FAR greater than buying a home would have, even here in California. I've done very well with my real estate purchases, but many homeowners in Detroit for example certainly haven't, nor have the people who bought homes based on others advice back in 2007 then went upside down or even worse, were laid off when the US economy and housing market tanked. Many of the points in these posts provide sound advice for certain situations, but again there are too many financial variables to understand and consider before emphatically stating that one approach is better than the other. Last edited by SonicEndeavor; 07-16-2014 at 10:39 AM.. |
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07-22-2014, 03:54 AM | #100 |
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07-30-2014, 12:37 AM | #101 |
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I think income is a terrible way to look at whether you can afford a car. It should be based on your net worth....
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