Alright, as many of you might know by my post trolling about the MCSc that ive been in the works of getting one

Well today, I sat down with my father to talk about selling my car and trying to figure out the timing of it all to see if I needed a cheap car for the time being or what.

Its at this time he perposed an interesting idea and both saddening Idea. I was going to roughly spend $40k on the MCSs with taxes and all that jazz and I was looking to pay the car right off so that would just leave insurance and such for me to pay off.

What he offered is that I already own a fairly new cooper (nock on wood, no digs or dents or scratches and only 19.5k miles on her) and that I keep my Cooper, he doubles the money I have and we look for some land for me in the $100-200k range. He then said that I use the insurance monthly to pay for the morgage on the land. Living in CA and anywhere I guess, having land is always a good investment. Even if the prices fall, they will eventually rise. More so, he's saying its both a good investment and B, in a few years when my car is old, I could just sell the land and get whatever car I want.

So having said that, its both an amazing offer and yet ive hyped myself up so much for selling my Cooper and getting a MCSs. I guess im just looking for some advice from some of the more experienced in life members of NAM, being that im only going to turn 21 in Sept. So any input would be appreciated.

 

Land is always a good investment, a car is a good purchase, they are two entirly different things, I'd say opt for the land, but I'm younger than you.

 

Go for the land! But some things to keep in mind.... Property Tax will cost some money each year. And depending on where the land is, you may or maynot make any money on it.

But $40k for a car when you already have a good car is quite the expense. What about putting some money in to retirement savings? If you have a job, you can put some into an IRA and have the magic of compound interest work for you.

But this is far from simple math. If you do get land, and you do have income, you can put a trailer on it and then the mortgage interest is deductable against income... But this all gets very messy if you pops is claiming you as a dependant.

If you don't know anything about this type of math, you should learn pronto. With this kind of wealth, some smart decisions on savings and investment now can make all the difference in your standard of living later. Now's the time to learn. You can always SPEND money, it's much harder to keep it, much less make it grow...

Matt

 

Get the land!!!!!!!!!!!!!

 

Don't be stupid, take the deal... you spoiled brat.

 

Yep, get the land!!!

 

Your dad is very generous and very smart! Keep your Cooper and get the land! What a deal!

 

I think it really comes down to the fact that ive hyped myself up so much for the MCSc. ive read into it, test drove it, had my options listed out and I almost put it online for sale 2 days ago. I had all the pics and everything taken too with another dedicated site for extra pics and such haha so I was really ready.

Its just about the fact of instant gratification (within next 2 months lol) or waiting i unno, 3-4 years and such and getting a Carrea S? =O!!! or using the money for a house or whatever life becons.

 

Duh ! the land

 

This is an easy one. You live in So Cal and if you have a long term horizon on the purchase of the land it's a no brainer in my opinon. Get the land and drive that wonderful Cooper you already have! Buying property in California has thus far been the best investment I've made. Don't get me wrong I love driving my MCS, but I'd trade her for land and a MC in a heartbeat!

 

Be sure and post some pics of your Cooper sitting out in the middle of your new spread!


Just wondering.....how much land will that buy in California? Cause around here that'd be like a 100 acre farm.

 

what im hoping to do is get some land around the PalmDale area. I know my Uncle has purchased alot of land and in one year, a $200k land was then worth $250k. Not bad for just a 1 year turn around. umm it depends where. In LA area, $80-150k wont get you jack crap. I need to do some further research into this matter but im hoping to get 1 Acre

 

The land. Just because you will be investing in land doesn't mean the Cabrio is out of the question...just not now. You will never get an opportunity for a first step at such a young age toward your future.

Six months to a year after having the Cabrio, a lot of the satifaction will have passed...you'll start to look again and again.

Missed opportunities are just that...missed. Right now you have options...the key to life is you in control of your options. When someone else controls your options you can start to have that trapped feeling which is no fun at all.

God bless your dad.

KK

 

No brainer - Land, they are not making any more of that.

Your dad is not looking to adopt a 46yrd old child is he?

You are truly blessed to not only have a dad like that but one who trusts you to make the right decision....

Tim

 

very funny you mention that. Its exactly what my dad told me. Hes like stocks go up and down and 401's can be lost and eaten. Hes like everything else, they can somehow make more of it, wether it be gold or oil or air but land is land and thats it.

 

To be very serious, I cant believe your actually asking this question since.

Lets see ... a hunk of depreciating iron .... or
LAND with an immediate 100% profit.

Oh yeah, I'll take the hunk of iron that will end up in the junkway or Mexico in 10 years over LAND

I might sound facetious here but trust me on this ...

The Almighty above AIN'T making anymore land ...
Car makers will always be making more cars ...

As others have said, thank whoever you pray to that you have a great father.

 

Is this bad of me? Ive been looking at 911 Carrera S's already

 

Yes, you are BAD!

Do the smart thing and get the land and that Porsche will be free after a few years!

 

Sometimes the best things in life are worth waiting for. I know it's a hard thing to understand when you are young, but as you get older you realize how much easier life could be had you made a few smart decisions when you were younger. I'm 42 and at 21 I probably would have chosen the car. Now I know better and being a land owner in Southern California myself, I see what a wise person your father is. Take the land deal - it's a great offer.

 

oh for sure, as in ive been scheming up what to get in a few years I got sometime for research huh?

over all, ill have to do some research into this deal and figure out how to hunt down some land but from my understanding, the deal will be, I will bring forward the $35k or so that I was going to spend and my dad will double that so then ill have about $70-80k. Then we look for a land worth about $150-200k. I then take out a loan for the rest (I have fairly high credit (751 is my current credit score) my dad helped me with the idea of building credit from when i was young) so we will take out a loan and I will start to pay towards the land everymonth instead of blowing it and spending it on insurance and such for the MCSc. Then hopefully, in a few years, ill have a chunck of change that I can blow on a nice car and maybe re-invest the rest again into more land for future plans (ive always wanted to own my own business as my current goals are working in the Film Industry)

 

I'm with you on instant gratification - we were all set to pick up a second MCS this afternoon and the seller called to say he wrecked it last night. :( All this hype and anticpation, now.....nothing. We even cleaned out the garage to make room for it.

Any time someone is willing to be generous with their money and help you with an investment, it's wise to consider. The car will always be there and is an expense - the $40K spent will never be as much again whereas the land should at least break even (most places that is).

 

You sound as if you are on the road to an intellegent decision. Your Dad is very wise, and you will do great if you listen to him. Of course go for the land!!! The operative word of instant gratification is INSTANT and it is fleeting. Drive the great MINI you have (depreciation is usually not an issue) and know that you have a great investment. There is actually LAND still for sale in southern California? Oh and by the way you sound as if you have a good head on your shoulders - the apple did not fall far from the tree.

Mrs. Peale

 

"Even if the prices fall, they will eventually rise."

I don't how land prices are correlated with house prices in Californa, but if they've been on the same kind of trajectory for the past 5-7 years, that may be a very risky investment. Prevailing opinion seems to be that many California real estate markets, including the LA area, are grossly overvalued and headed for a crash in the next several years. That 25% profit in one year that you mentioned does not happen in a healthy, sustainable market - it's not a profit derived from risk, just from irrational speculation. If the prices fall, they will eventually rise again, but it may take a long time for them to return to present levels.

Anyway, since your dad is basically handing you tens of thousands of dollars, you personally would probably still come out ahead, but both of you might want to think about the timing of this and do some research into what the market has been doing recently. All indications seem to point toward this being the top (or just past the top, depending on where you are) of the real estate market, meaning that a lot of people who buy right now could get badly burned unless they're planning on staying where they are for at least 10-15 years.

On the other hand, if you really have seven cars (sig?), then I don't know how much all of this should really scare you. Obviously your family would be there to help if you needed to sell the land at a loss for some reason.

Good luck!

 

haha no no. Those are cars ive gone through and have had before. I only own a MC right now

On the other hand, you are very correct as ive also heard alot how the real estate market in Cali and mostly in the LA area is very bloated and its near a big tumble and so forth (and if it does tumble anytime soon, you can bet that im gonna try to muster up more cash and get more land cause that will be a nice long long term investment indeed). I know the numbers of profit I quoted are fairly releastic because that is what my uncle came out with but I dont honestly know where exactly it was or the terms and condition so I couldnt really put a valid argument behind it.

As you said, I will have to indeed further research this matter before making any form of decion

 

go for the land and forget the cooper :D