BMW i5 and 5-Series Forum

Post Reply
 
Thread Tools Search this Thread
      08-22-2016, 07:26 PM   #199
fecurtis
Banned
United_States
3271
Rep
6,299
Posts

Drives: 2014 BMW 335i M-Sport
Join Date: Jan 2014
Location: Arlington, VA

iTrader: (0)

Quote:
Originally Posted by Flying Ace View Post
you must have a overbearing over-opinionated mother.
Half Korean....this is accurate.
Appreciate 1
Flying Ace5049.50
      08-22-2016, 07:55 PM   #200
omasou
Brigadier General
omasou's Avatar
United_States
2126
Rep
3,025
Posts

Drives: BMWs
Join Date: Apr 2016
Location: US

iTrader: (4)

Garage List
2023 BMW S1000RR  [0.50]
2022 BMW F900XR  [3.00]
2022 BMW X6 40i  [0.50]
2020 BMW M2C  [9.50]
1. fully fund your 401K
2. fully fund your Roth 401 IRA
Edit: 2a. fund your HSA
3. save until you can afford to be unemployed for 6 months to 1 year
4. relax you can afford to be unemployed
5. buy a condo, house, etc.
6. take BART
7. rent from Enterprise when you need to move something big
8. don't listen to reviewers who don't own the car
9. don't give a shit what others think about your house, car or clothes
10. retire early and enjoy life


Facts:
1. Your income will eventually be greater than the Roth 401K contribution limits
2. Today's interest rates are essentially free money buy a house not a car
3. Interest rates will eventually go up
4. A car is a depreciating asset
5. Dakota leather may not be as sexy as Merino/Nevada leather but is certainly better than Sensatec vinyl.

Affording housing in CA
1. Buy something smaller
2. Get a roommate(s)
3. Rent main house live in small house out back (the first house my brother rented the owner was living in the guest house for 5-10 years until he could afford to move the main house and rent the guest house.)

Last edited by omasou; 08-23-2016 at 12:23 AM..
Appreciate 2
      08-22-2016, 08:15 PM   #201
brandoningram14
Enlisted Member
40
Rep
40
Posts

Drives: none
Join Date: Jul 2016
Location: NC

iTrader: (0)

Quote:
Originally Posted by masou View Post
1. fully fund your 401K
2. fully fund your Roth 401K
3. save until you can afford to be unemployed for 6 months to 1 year.
4. buy a condo, house, etc.
5. take BART
6. rent from Enterprise when you need to move something big
7. don't listen to reviewers who don't own the car
8. don't give a shit what others think about your house, car or clothes


Facts:
1. Your income will eventually be greater than the Roth 401K contribution limits
2. Today's interest rates are essentially free money buy a house not a car
3. Interest rates will eventually go up
4. A car is a depreciating asset
5. Dakota leather may not be as sexy as Nevada leather but is certainly better than Sensatec vinyl.

Affording housing in CA
1. Buy something smaller
2. Get a roommate
3. Rent main house live in small house out back (the first house my brother rented the owner was living in the guest house for 5-10 years until he could afford to move the main house and rent the guest house.)
Thanks.

Check on 1, 3 (I can live on nothing or move back home with parents), 6, 8.

Buying a house in the bay area right now is a huge risk or I would have done it already. I'd totally be up for buying and renting out most of the house right now. There's nothing I hate more than renting.





Those are the price charts of the cities near my area. Both are <2000 sqft townhouse 2bd/2ba and 3bd/3ba near my area.

At 1 mil, I'd need 30k for 3% down (let's say 40k because I'm sure there's closing costs and other fees), 20k for a car and another 40k so I can sleep at night (as a homeowner). So I'd say I'm looking at a net worth of 100k before I can buy a house (still)

Last edited by brandoningram14; 08-22-2016 at 08:21 PM..
Appreciate 0
      08-22-2016, 08:20 PM   #202
omasou
Brigadier General
omasou's Avatar
United_States
2126
Rep
3,025
Posts

Drives: BMWs
Join Date: Apr 2016
Location: US

iTrader: (4)

Garage List
2023 BMW S1000RR  [0.50]
2022 BMW F900XR  [3.00]
2022 BMW X6 40i  [0.50]
2020 BMW M2C  [9.50]
Quote:
Originally Posted by brandoningram14 View Post
Thanks.

Check on 1, 3 (I can live on nothing or move back home with parents), 6, 8.

Buying a house in the bay area right now is a huge risk or I would have done it already. I'd totally be up for buying and renting out most of the house right now. There's nothing I hate more than renting.





Those are the price charts of the cities near my area. Both are <2000 sqft townhouse 2bd/2ba and 3bd/3ba near my area
Unless we have another financial meltdown those charts are only going to go up.

You need to look harder and lower your expectation. This is your first house not your forever house.

If your making $130K your parent are planning to rent out your room, so moving home might not be an option.��

Buy a fixer up. Or live in Oakland, sorry just kidding about Oakland��

Last edited by omasou; 08-22-2016 at 08:54 PM..
Appreciate 1
      08-22-2016, 08:26 PM   #203
M3 Number 86
Major General
3237
Rep
6,217
Posts

Drives: black m3
Join Date: Mar 2015
Location: pasadena

iTrader: (1)

Quote:
Originally Posted by Flying Ace
Quote:
Originally Posted by EJT86 View Post
Wrong side. my fathers side is korean
you must have a father who always appears angry, and is often found in smoky karaoke bars
That's me in the future lol
__________________
Appreciate 0
      08-22-2016, 08:50 PM   #204
omasou
Brigadier General
omasou's Avatar
United_States
2126
Rep
3,025
Posts

Drives: BMWs
Join Date: Apr 2016
Location: US

iTrader: (4)

Garage List
2023 BMW S1000RR  [0.50]
2022 BMW F900XR  [3.00]
2022 BMW X6 40i  [0.50]
2020 BMW M2C  [9.50]
Here's an idea.

If your single, unmarried and without children you have the most free time that you will ever have in your life except for when you were in K-12.

Buy a house, fix it, flip it, repeat. Do this until you get the house you want.

or buy condos and rent them.

Last edited by omasou; 08-22-2016 at 08:57 PM..
Appreciate 0
      08-22-2016, 08:51 PM   #205
John 070
Lieutenant General
1731
Rep
14,825
Posts

Drives: 335i cpe
Join Date: Oct 2006
Location: ZSP/ZPP/ZCW

iTrader: (0)

Quote:
Originally Posted by masou View Post
1. fully fund your 401K
2. fully fund your Roth 401K
3. save until you can afford to be unemployed for 6 months to 1 year
4. relax you can afford to be unemployed
5. buy a condo, house, etc.
6. take BART
7. rent from Enterprise when you need to move something big
8. don't listen to reviewers who don't own the car
9. don't give a shit what others think about your house, car or clothes
10. retire early and enjoy life


Facts:
1. Your income will eventually be greater than the Roth 401K contribution limits
2. Today's interest rates are essentially free money buy a house not a car
3. Interest rates will eventually go up
4. A car is a depreciating asset
5. Dakota leather may not be as sexy as Merino/Nevada leather but is certainly better than Sensatec vinyl.

Affording housing in CA
1. Buy something smaller
2. Get a roommate(s)
3. Rent main house live in small house out back (the first house my brother rented the owner was living in the guest house for 5-10 years until he could afford to move the main house and rent the guest house.)
Man this is good advice. When you said 401k and Roth, I already knew you were about to make a lot of sense. Most of us will hit the 401k cap as BMW drivers, and we will also be phased out of the Roth. But it's the concept of saving as much as the IRS allows. Especially when starting out. Truth be told you don't need a fancy car at 22, you should be chasing the opposite sex and living it up outside of a car....
Appreciate 0
      08-22-2016, 08:55 PM   #206
StatenEye
Banned
United_States
551
Rep
2,821
Posts

Drives: X5M F85
Join Date: Aug 2008
Location: SI NY

iTrader: (4)

Garage List
2016 BMW X5M  [0.00]
2011 BMW X5M  [9.00]
Not going to read all of this but here is advice..

Buy the car but get it used. You wont know the difference and youll keep at least 40k in the pocket.

STAY AWAY FROM THE REAL ESTATE MARKET ESPECIALLY IN LARGER CITIES.

STAY AWAY

STAY AWAY

STAY AWAY.

http://www.cnbc.com/2016/03/28/this-...ommentary.html

The real estate bubble will burst soon. It is far more risky to take a loan on an asset that is almost GUARANTEED to depreciate immensely bc the necessary factors for valuation simply are not there i.e; Strong job market, GDP trending upwards or steady, Velocity of money trending upwards. The logic that the home values will rise while our economy is faltering, jobs are scarce and the future for most large companies are through revenues sourced from lower operating costs is not sound.

Home Buyer-ship has plateaued and the prices will drop soon. If you take a 40k loan on an M5 what's the worst that going to happen? You sell the car for 10k less that you paid? Try having an 800k mortgage on a house thats worth 500k like the poor souls from 2007.

Get the car but do yourself a favor and buy CPO and get an extended warranty. 125k is plenty to carry a 40k note. I would advise you to not take a 60k note, its senseless when you can get a CPO and essentially get the same car for a fraction of MSRP.

First chart is our GDP which is failing steadily over the same period the housimg market has resurged!
Attached Images
   

Last edited by StatenEye; 08-22-2016 at 09:05 PM..
Appreciate 0
      08-22-2016, 09:06 PM   #207
John 070
Lieutenant General
1731
Rep
14,825
Posts

Drives: 335i cpe
Join Date: Oct 2006
Location: ZSP/ZPP/ZCW

iTrader: (0)

Quote:
Originally Posted by StatenEye View Post
Not going to read all of this but here is advice..

Buy the car but get it used. You wont know the difference and youll keep at least 40k in the pocket.

STAY AWAY FROM THE REAL ESTATE MARKET ESPECIALLY IN LARGER CITIES.

STAY AWAY

STAY AWAY

STAY AWAY.

http://www.cnbc.com/2016/03/28/this-...ommentary.html

The real estate bubble will burst soon. It is far more risky to take a loan on an asset that is almost GUARANTEED to depreciate immensely bc the necessary factors for valuation simply are not there i.e; Strong job market, GDP trending upwards or steady, Velocity of money trending upwards.

Home Buyer-ship has plateaued and the prices will drop soon. If you take a 40k loan on an M5 what's the worst that going to happen? You sell the car for 10k less that you paid? Try having an 800k mortgage on a house thats worth 500k like the poor souls from 2007.

Get the car but do yourself a favor and buy CPO and get an extended warranty. 125k is plenty to carry a 40k note. I would advise you to not take a 60k note, its senseless when you can get a CPO and essentially get the same car for a fraction of MSRP.

First chart is our GDP which is failing steadily over the same period the housimg market has resurged!
I think this is more sound advice. Say you buy a stock, what's the most you can lose? Your entire investment. Say you short a stock. What's the most you can lose? There is no upper bound. There really isn't any reason to buy real estate near the top IMHO, this isn't a game of musical chairs..
Appreciate 0
      08-22-2016, 09:51 PM   #208
jgoens
Major General
jgoens's Avatar
3829
Rep
5,776
Posts

Drives: 2013 335i msport
Join Date: Nov 2014
Location: San Mateo, CA

iTrader: (0)

Quote:
Originally Posted by csu87 View Post
Awe sheet I got one going jgoens
I'm gonna go check it out.

edit..can't find it....nothing recent going.
__________________
2013 335i Msport Black sapphire/Coral red. MHD. stage 2--e30 VRSF DP, ER CP, Dinan Shockware. VRSF 12mm/15mm spacers. Cobra dashcam. Various codings.
Last car: 2011 335i Msport. JB4. Vrsf CP

Last edited by jgoens; 08-22-2016 at 09:57 PM..
Appreciate 0
      08-22-2016, 11:10 PM   #209
rad doc
Lieutenant
250
Rep
513
Posts

Drives: 1M AW loaded
Join Date: May 2011
Location: texas

iTrader: (0)

Quote:
Originally Posted by masou
1. fully fund your 401K
2. fully fund your Roth 401K
3. save until you can afford to be unemployed for 6 months to 1 year
4. relax you can afford to be unemployed
5. buy a condo, house, etc.
6. take BART
7. rent from Enterprise when you need to move something big
8. don't listen to reviewers who don't own the car
9. don't give a shit what others think about your house, car or clothes
10. retire early and enjoy life


Facts:
1. Your income will eventually be greater than the Roth 401K contribution limits
2. Today's interest rates are essentially free money buy a house not a car
3. Interest rates will eventually go up
4. A car is a depreciating asset
5. Dakota leather may not be as sexy as Merino/Nevada leather but is certainly better than Sensatec vinyl.

Affording housing in CA
1. Buy something smaller
2. Get a roommate(s)
3. Rent main house live in small house out back (the first house my brother rented the owner was living in the guest house for 5-10 years until he could afford to move the main house and rent the guest house.)
Note under facts: Income greater than Roth 401k limit? Huh? There is no income limit on Roth 401k. Hit max of 17.5k every year. There is an income limit on Roth Ira but just backdoor it like rest of world.
Appreciate 1
omasou2125.50
      08-22-2016, 11:26 PM   #210
omasou
Brigadier General
omasou's Avatar
United_States
2126
Rep
3,025
Posts

Drives: BMWs
Join Date: Apr 2016
Location: US

iTrader: (4)

Garage List
2023 BMW S1000RR  [0.50]
2022 BMW F900XR  [3.00]
2022 BMW X6 40i  [0.50]
2020 BMW M2C  [9.50]
Quote:
Originally Posted by rad doc View Post
Note under facts: Income greater than Roth 401k limit? Huh? There is no income limit on Roth 401k. Hit max of 17.5k every year. There is an income limit on Roth Ira but just backdoor it like rest of world.
Sorry, you're correct Roth IRA.

back door it?
Appreciate 0
      08-22-2016, 11:30 PM   #211
rad doc
Lieutenant
250
Rep
513
Posts

Drives: 1M AW loaded
Join Date: May 2011
Location: texas

iTrader: (0)

Quote:
Originally Posted by masou
Quote:
Originally Posted by rad doc View Post
Note under facts: Income greater than Roth 401k limit? Huh? There is no income limit on Roth 401k. Hit max of 17.5k every year. There is an income limit on Roth Ira but just backdoor it like rest of world.
Sorry, you're correct Roth IRA.

back door it?
Fully fund Trad ira and roll over immediately into Roth acct. Perfectly legal. Also don't forget to fund hsa savings acct. if eligible, aka stealth ira.
Appreciate 1
omasou2125.50
      08-23-2016, 12:11 AM   #212
///3dkn
Major
///3dkn's Avatar
No_Country
1487
Rep
1,386
Posts

Drives: F87 M2C
Join Date: Jan 2012
Location: Unknown

iTrader: (9)

Just buy the F80 M3 man! All your other worries and having a place to live and no money left over after its all said and done is future you problems.
Appreciate 0
      08-23-2016, 12:22 AM   #213
omasou
Brigadier General
omasou's Avatar
United_States
2126
Rep
3,025
Posts

Drives: BMWs
Join Date: Apr 2016
Location: US

iTrader: (4)

Garage List
2023 BMW S1000RR  [0.50]
2022 BMW F900XR  [3.00]
2022 BMW X6 40i  [0.50]
2020 BMW M2C  [9.50]
Quote:
Originally Posted by rad doc View Post
Fully fund Trad ira and roll over immediately into Roth acct. Perfectly legal. Also don't forget to fund hsa savings acct. if eligible, aka stealth ira.
Forgot about HSA. If your company has it, which I do now.
Appreciate 0
      08-23-2016, 12:43 AM   #214
Benedict1957
Enlisted Member
47
Rep
35
Posts

Drives: 2008 E90 M3
Join Date: Feb 2014
Location: TX

iTrader: (0)

I don't think it's wise to spend any more than 2% of ones net worth on a car. If you can't afford to write a check for the car in principle, then you certainly can't afford to lease it and comparable cars in perpetuity.
Appreciate 1
Draper3504.00
      08-23-2016, 12:49 AM   #215
Benedict1957
Enlisted Member
47
Rep
35
Posts

Drives: 2008 E90 M3
Join Date: Feb 2014
Location: TX

iTrader: (0)

The net worth criterion works well because it encompasses a lot of the concerns others are bringing up in this topic. If you pass the 2% net worth test, then you've probably already been maxing out your 401K/IRA/deferred compensation plans already. You probably already have (and have possibly already paid off) a mortgage on a house. You probably have no student loan debt, etc. It's simple and clean albeit extremely arbitrary. Probably 99%+ people would fail the 2% test, but the few that don't are probably already affluent or are well on their way to becoming prodigious accumulators of wealth for their income bracket.
Appreciate 0
      08-23-2016, 12:52 AM   #216
PoorLurker
Custom User Title
PoorLurker's Avatar
No_Country
1139
Rep
675
Posts

Drives: a bicycle
Join Date: May 2015
Location: Orange County, CA

iTrader: (0)

Quote:
Originally Posted by jtodd_fl View Post
So.... NOT endorsing this site (whoever they are) or their formulations. Just throwing this out there as a jumping off point for your own research. Everyone's situation is different and not everyone lives solely off of "income". Food for thought. The older folks on here will scoff at the low recommended DTI and talk about leverage and such. However, leverage generally relies upon a reasonable "safety net" of assets - i.e. if shit goes upside down, you won't be homeless. Anyway, for your own consideration.... http://www.clearpoint.org/blog/what-...-ratio-anyway/


Wow! Are some of you eating at Alinea every week? 20% on food?
Attached Images
 
Appreciate 1
jtodd_fl6709.00
      08-23-2016, 01:04 AM   #217
SakhirM4
Major General
SakhirM4's Avatar
United_States
10804
Rep
8,852
Posts

Drives: '15 SO M4/'20 Z4 M40i
Join Date: Jul 2014
Location: Austin, TX

iTrader: (0)

Garage List
2020 BMW Z4 M40i  [10.00]
2015 BMW M4  [8.76]
Quote:
Originally Posted by Benedict1957 View Post
I don't think it's wise to spend any more than 2% of ones net worth on a car. If you can't afford to write a check for the car in principle, then you certainly can't afford to lease it and comparable cars in perpetuity.
Are you saying that I should have has a net worth of $4mil to pay cash for my M4?? That is just ludicrous. I have no debt (no loans no credit cards, etc.), no mortgage (house is paid off), paid cash for my M4. Net worth is less than $500k.
__________________
Tejas Chapter, BMW CCA, mem #23915, President 27 years, www.tejaschapter.org
Appreciate 0
      08-23-2016, 01:36 AM   #218
J.M
First Lieutenant
J.M's Avatar
Netherlands
264
Rep
337
Posts

Drives: '17 M2 DCT BSM
Join Date: Jul 2016
Location: Nurburgring

iTrader: (0)

Garage List
2017 BMW M2  [0.00]
Judging by all the comments with advice I get that living in the US must be financially very tough and uncertain.
To OP, best advice is: move to Europe! It's way nicer here :P
Appreciate 0
      08-23-2016, 01:54 AM   #219
rad doc
Lieutenant
250
Rep
513
Posts

Drives: 1M AW loaded
Join Date: May 2011
Location: texas

iTrader: (0)

Quote:
Originally Posted by JJ_Moura
Judging by all the comments with advice I get that living in the US must be financially very tough and uncertain.
To OP, best advice is: move to Europe! It's way nicer here :P
Keep telling yourself that
Appreciate 0
      08-23-2016, 03:16 AM   #220
Don Molina
not that guy
Switzerland
110
Rep
83
Posts

Drives: F82 M4 + S2000
Join Date: Jun 2016
Location: Zurich, CH

iTrader: (0)

Quote:
Originally Posted by JJ_Moura View Post
Judging by all the comments with advice I get that living in the US must be financially very tough and uncertain.
To OP, best advice is: move to Europe! It's way nicer here :P
True 'dat.

I wouldn't move to the US for anything under 300k a year
Appreciate 0
Post Reply

Bookmarks


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 09:38 PM.




g60
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST