Can I buy a ferrari?
Registered User
Joined: Apr 2010
Posts: 1,230
From: Long Island, New York
Rep Power: 77
At least drive one first. You may decide that you don't like it (I can't imagine that but you never know).
Registered User
Joined: Jul 2008
Posts: 20
From: Hamilton Canada
Rep Power: 0
Hi addbe,
My recommendation to you is to sell all of your Australian real estate ASAP. That market is ridiculously over valued. Prices there have reached levels much higher then what happened in the U.S before collapse. Household debt in Australia is at dangerous levels and house price relative to income is off the charts. Hit the bid and sell. Judging from your post it seems you are heavily leveraged and the properties are not producing a cash flow as a cushion. When prices collapse there you will be stuck with all the debt but none of the equity nor any cash flow.
If you were a buyer of real estate at the top of the market, it will take you 20-30 years if ever to see your investment return to positive. US markets collapsed 50-60% in some areas, and if it wasn't for the government intervention they would be down another 30-40%. US gov through FHA, Freddie and Fannie currently supports 90% of the mortgage market. This situation is even worse in Australia. Get out while there is still buyers.
My recommendation to you is to sell all of your Australian real estate ASAP. That market is ridiculously over valued. Prices there have reached levels much higher then what happened in the U.S before collapse. Household debt in Australia is at dangerous levels and house price relative to income is off the charts. Hit the bid and sell. Judging from your post it seems you are heavily leveraged and the properties are not producing a cash flow as a cushion. When prices collapse there you will be stuck with all the debt but none of the equity nor any cash flow.
If you were a buyer of real estate at the top of the market, it will take you 20-30 years if ever to see your investment return to positive. US markets collapsed 50-60% in some areas, and if it wasn't for the government intervention they would be down another 30-40%. US gov through FHA, Freddie and Fannie currently supports 90% of the mortgage market. This situation is even worse in Australia. Get out while there is still buyers.
Thread Starter
|
Registered User
Joined: Mar 2010
Posts: 8
From: Australia
Rep Power: 0
Hi addbe,
My recommendation to you is to sell all of your Australian real estate ASAP. That market is ridiculously over valued. Prices there have reached levels much higher then what happened in the U.S before collapse. Household debt in Australia is at dangerous levels and house price relative to income is off the charts. Hit the bid and sell. Judging from your post it seems you are heavily leveraged and the properties are not producing a cash flow as a cushion. When prices collapse there you will be stuck with all the debt but none of the equity nor any cash flow.
If you were a buyer of real estate at the top of the market, it will take you 20-30 years if ever to see your investment return to positive. US markets collapsed 50-60% in some areas, and if it wasn't for the government intervention they would be down another 30-40%. US gov through FHA, Freddie and Fannie currently supports 90% of the mortgage market. This situation is even worse in Australia. Get out while there is still buyers.
My recommendation to you is to sell all of your Australian real estate ASAP. That market is ridiculously over valued. Prices there have reached levels much higher then what happened in the U.S before collapse. Household debt in Australia is at dangerous levels and house price relative to income is off the charts. Hit the bid and sell. Judging from your post it seems you are heavily leveraged and the properties are not producing a cash flow as a cushion. When prices collapse there you will be stuck with all the debt but none of the equity nor any cash flow.
If you were a buyer of real estate at the top of the market, it will take you 20-30 years if ever to see your investment return to positive. US markets collapsed 50-60% in some areas, and if it wasn't for the government intervention they would be down another 30-40%. US gov through FHA, Freddie and Fannie currently supports 90% of the mortgage market. This situation is even worse in Australia. Get out while there is still buyers.
I'll take your words seriouly. Australian house price and household debt are high, in many ways rediculous by many standards. I will not sell all my portfolio but will certainly reduce my exposure.
Registered User
Joined: May 2010
Posts: 16
From: Arizona
Rep Power: 0
Yeah, it is not wise financially, but you got to enjoy life. You might lose it all in a blink. So if it will make you happy, buy it, you might not be able to 10 years from now. I mean you cannot always live for the moment, but you do always have to live in the moment, so sometimes you just got to say what the f...
Former Vendor
Joined: Nov 2009
Posts: 1,183
From: South Florida
Rep Power: 0
I say...you are young and probably have a lot of time left in your life to accumulate wealth etc.... If that is your goal in life, to many it is not. To me if you can afford the extra bill, and your lifestyle is not altered, then do what makes you happy. You can save your A$$ off for years and accumulate immense amounts of cash, art, land, investments and then you have a stroke or get hit by a car or cancer etc....then you will regret not living life to the fullest while you could have. Not that having a Ferrari is equal to living life to the fullest, but if that helps you enjoy life while you have it then why not??
Mike
Registered User
Joined: Feb 2009
Posts: 117
From: NY
Rep Power: 23
Thats Super Conservative.... This means in order to own a Scuderia you "must" be worth between 12 and 25 million.
Thread Starter
|
Registered User
Joined: Mar 2010
Posts: 8
From: Australia
Rep Power: 0
Thank you for the replies guys. My take on the ownership of a proper Ferrari might be conservative, but works for me, as I'm just not a die hard fan of Ferrari. It is more of a ego thing. Making money and accumulate them is considerably more enjoyable for me than using them.
Last edited by addbe; May 27, 2010 at 08:55 AM.
Registered User
Joined: Oct 2008
Posts: 696
From: clearwater florida
Rep Power: 57
I agree Lee
Sometimes its not about the money at all but the experience, and with cars it better be about the experience because lets face it, almost all cars are bad investments. I agree also that the 430 is worth the asking price. I only suggest the 911 because the OP was concerned a little about the dollar amount.
As it turns out he already has a 911
I would suggest you drive a new 911 just for giggles if you ever get a chance, the 996 was really the step child of 911's and really not that fast. The new 911 is really a huge step up, its like going from a 355 to a 430.
For the OP, if you really want the Ferrari and you can afford it, throw caution to the wind and go for. We all have to live and a math equation about whether you should do something sometimes get out weighed by the experience equation
As it turns out he already has a 911
I would suggest you drive a new 911 just for giggles if you ever get a chance, the 996 was really the step child of 911's and really not that fast. The new 911 is really a huge step up, its like going from a 355 to a 430.
For the OP, if you really want the Ferrari and you can afford it, throw caution to the wind and go for. We all have to live and a math equation about whether you should do something sometimes get out weighed by the experience equation
Thread Starter
|
Registered User
Joined: Mar 2010
Posts: 8
From: Australia
Rep Power: 0
Sometimes its not about the money at all but the experience, and with cars it better be about the experience because lets face it, almost all cars are bad investments. I agree also that the 430 is worth the asking price. I only suggest the 911 because the OP was concerned a little about the dollar amount.
As it turns out he already has a 911
I would suggest you drive a new 911 just for giggles if you ever get a chance, the 996 was really the step child of 911's and really not that fast. The new 911 is really a huge step up, its like going from a 355 to a 430.
For the OP, if you really want the Ferrari and you can afford it, throw caution to the wind and go for. We all have to live and a math equation about whether you should do something sometimes get out weighed by the experience equation
As it turns out he already has a 911
I would suggest you drive a new 911 just for giggles if you ever get a chance, the 996 was really the step child of 911's and really not that fast. The new 911 is really a huge step up, its like going from a 355 to a 430.
For the OP, if you really want the Ferrari and you can afford it, throw caution to the wind and go for. We all have to live and a math equation about whether you should do something sometimes get out weighed by the experience equation
Registered User
Joined: May 2004
Posts: 29
Rep Power: 23
Will real estate appreciate? Sure as hell won't be here. I thought Australia had the same idiotic CDO fueled run-up the US did...
But either way, not going to say liquidate real property and dump it into cars though!
(maybe gold, to be honest... LOL)
I think the 5% figure is kind of crazy...
Look at it this way... The average person has NEGATIVE net worth in the US, yet owns a car, right?
I think if you can afford to make a payment on the damn thing while easily covering insurance, practical vehicles, and housing/bills, etc and live somewhere that a Ferrari wouldn look ridiculous (this is just my personal spin on that one
), and are in a position where a $15k repair, while ****ty, wouldn't cause an aneurysm, then get the damn thing!
And post pics!
BTW... If I had been in your position at your age, I wouldnt have even *hesitated* on this one, so congrats on being a lot more level headed than I
But either way, not going to say liquidate real property and dump it into cars though!
(maybe gold, to be honest... LOL)I think the 5% figure is kind of crazy...
Look at it this way... The average person has NEGATIVE net worth in the US, yet owns a car, right?
I think if you can afford to make a payment on the damn thing while easily covering insurance, practical vehicles, and housing/bills, etc and live somewhere that a Ferrari wouldn look ridiculous (this is just my personal spin on that one
), and are in a position where a $15k repair, while ****ty, wouldn't cause an aneurysm, then get the damn thing!And post pics!
BTW... If I had been in your position at your age, I wouldnt have even *hesitated* on this one, so congrats on being a lot more level headed than I
Registered User
Joined: Mar 2007
Posts: 189
From: SoCal
Rep Power: 27
I say go for it.
I am sure you are very savvy with your money to own that many properties under your belt, not to mention the development projects. Honestly, one less property or project isn't going to hurt. You're 26, you have plenty of time to acquire more properties and get into new projects. What if a sweet investment comes up when you're almost done saving up for the Ferrari? Would you then put the Ferrari in the back burner again? Would you ever be 26 again?
It's never a good time to blow $200K on a car, but the memories will be priceless...
I am sure you are very savvy with your money to own that many properties under your belt, not to mention the development projects. Honestly, one less property or project isn't going to hurt. You're 26, you have plenty of time to acquire more properties and get into new projects. What if a sweet investment comes up when you're almost done saving up for the Ferrari? Would you then put the Ferrari in the back burner again? Would you ever be 26 again?
It's never a good time to blow $200K on a car, but the memories will be priceless...