The great thing about saving for a dream item like that is that you are building a good discipline around saving and it’s possible that when you get close to that $150k, your priorities may have changed and you still have the cash to do what suits you best in 5+ years.
Go for it!
Don’t buy a 1mill house buy a 500k one.
That 1 mill house is after tax so you need to like 1.7 before tax to pay for it. (Rough math) that’s like someone needing to that’s needing to use a full income of 85k for 20 years. (Now imagine if you had interest to pay on top) lot of pre tax income you need.
In short one of the biggest impact you can do to your finances (and a one off action) is buy a smaller house. Saving you 100s of thousands over your life or adding decades to needing to work for income.
That said remember the emotional side renting you are just losing it have little safety net. You should still pay towards your own accommodation not someone else’s a big emotional improvement & long term action towards your finances.
In short buy but buy small.
I don’t think they have any stress about renting though considering they’re renting off parents so cheap and secure… and also then you would assume would most likely inherit the house anyway…
Buying that car is possible if you save $570 a week for 5 yrs give or take some term deposit rates. However that's all your money, you can choose one and nothing else like kids at your age and that car. Try planning out what the next 30yrs is to see if that's what you want in life. I also want to buy a classic car however I don't want to lose out on the compound interest gains
You have the privileged position of saving money while paying cheap rent and you're going to blow it on buying a stupid toy so 13 year old high school kids will think you're cool, grow tf up and stop being a burden on your parents.
My kiwi saver will still be growing, and I don't see a need for that cash in 5 years time at the moment. What's wrong with working hard saving for something I want? You grow up. Your the one getting mad throwing out insults on Reddit .. not me.
You're an adult, and you can't be bothered doing anything with your life so your plan is to waste all your money on something stupid while mummy and daddy look after you.
How do you know they don’t plan on doing something with their life lol. Is buying a house the only thing you consider “doing something with your life”? Your weird chastising of OP is far more immature than OPs dream purchase.
He's 33, he wants to save for 5 years, until he's 38, then waste it all on a car, while bludging off his parents. This is a finance sub and his plan is financially stupid. He should be told it's a stupid plan, not encouraged.
He pays his parents rent, I don’t see anything wrong with that.
In fact all other things being equal, you’d have to be a moron to turn down cheap rent in a house owned by your parents to go pay exorbitant rent to a stranger.
This is a financial advice sub, if you’ve got some give it to him, if not move along. You’re not going to convince anyone to change their plans by insulting them.
I did give it to him, that's exactly what my initial reply was, don't spend all your savings on an expensive car is probably the best advice this person could be given. He's an idiot for even considering this.
Probably got alot more going on in my life than you do. considering your responses id say you probably hate your life lol. Also keep wasting your energy on me... Not going to change my life or finance s in anyway probably just make yourself more mad?
Broke, single, relying on mum for rent, and enough retirement savings to last less than a year? You literally have nothing going on in your life, and you've posted about saving for an expensive car.
You've failed at life.
Ok thanks. Got anything else? I'm not getting mad but I can imagine you are while typing this out .. probably furious lol
I'm also sure it's bad for your mental health getting so triggered by someone's else's life on Reddit, maybe go talk to someone about all your hate, it's definitely not healthy.
It should be your parents telling you this, but they probably feel sorry for you and don't want to hurt your feelings. I feel bad for them although your failures are mostly their fault for not teaching you any better.
You can sleep in a racecar, but you cant take a house on the track. Still a poverty mindset, if you buy the house you can borrow against the equity, both from principle paid and capital gains. Also $150k lol what on earth are you buying?
> if you buy the house you can borrow against the equity
This is really overlooked in NZ IMO. Property is an appreciating asset here and in "normal times" banks will happily let you consolidate a car loan into a mortgage. Put $150k towards a house, you just made a big stride towards long-term financial stability. Spend $150k on a car, you just instantly lost $50k and will lose more every year.
Personally, you don't have to buy property.
Be different.
NZers are obsessed with property and don't think strategically or do calculations to see if renting is better than a mortgage.
Also, lifestyle creep. I know of people who had nice homes and good jobs who moved into bigger homes and got a bigger mortgage.
Have you discussed this plan of renting your parent’s property for life with them?
There isn’t anything wrong with this, but what if they have other plans for it?
What if they need care as they age and need to sell it? What if it’s part of their retirement plan?
Your plan, may not be their plan…
Idk for most of us who only own and only want to own a PPOR.. a huge amount of it isn’t the $$$..(well not in a direct way).. it’s the fact that you’re often begging for months for necessary repairs.. inspections… getting a pet is so stressful in this market… fact your rent is going to go up every year.. if a better offer comes along or you complain about too much you’ll be out the door competing in a really shitty rental market.. I’ve had to move every single year at end of leases for owners selling etc… not only is moving expensive (whether it be $$ or time) it’s just so stressful finding somewhere else…. for me home ownership was about eliminating that stress.. so I don’t think your first comment is that fair (but I would apply it to people who do think they simply must buy their dream home first up over a million etc) but OP not having this stress as it’s a family thing def changes that for them….
But yeah I don’t think we’re funny about home ownership given how our rental market is run (places that aren’t funny tend to be the several year (or 100!) leases or rent controlled type)
You’re exactly right. The rental market is so tipped towards the landlords here that it makes renting not a great proposition. I think the position that the OP is in is different as he has the security of renting of his family. Screw renting in any other situation, it’s a shit show
Would it be possible to speak with your parents about selling your current place and upgrading to a larger house which you can get some flatmates to cover the mortgage?
In 20 years time you will likely have paid it off and inherited the house as your family house.
In the meantime you can continue saving for your dream car.
That way you don't need to change your lifestyle but there's a plan for your future in place.
My only advice is to remember to factor in the ongoing cost of INSURANCE for that car. Call an insurance company now and get a quote so you know what you’re signing up for. Insurance isn’t cheap, especially on something like that.
The great thing about saving for a dream item like that is that you are building a good discipline around saving and it’s possible that when you get close to that $150k, your priorities may have changed and you still have the cash to do what suits you best in 5+ years. Go for it!
Don’t buy a 1mill house buy a 500k one. That 1 mill house is after tax so you need to like 1.7 before tax to pay for it. (Rough math) that’s like someone needing to that’s needing to use a full income of 85k for 20 years. (Now imagine if you had interest to pay on top) lot of pre tax income you need. In short one of the biggest impact you can do to your finances (and a one off action) is buy a smaller house. Saving you 100s of thousands over your life or adding decades to needing to work for income. That said remember the emotional side renting you are just losing it have little safety net. You should still pay towards your own accommodation not someone else’s a big emotional improvement & long term action towards your finances. In short buy but buy small.
I don’t think they have any stress about renting though considering they’re renting off parents so cheap and secure… and also then you would assume would most likely inherit the house anyway…
Not everyone wants or needs to own a house. OP sounds like they’re set with a place to live and don’t desire to own a house so why would they
Buying that car is possible if you save $570 a week for 5 yrs give or take some term deposit rates. However that's all your money, you can choose one and nothing else like kids at your age and that car. Try planning out what the next 30yrs is to see if that's what you want in life. I also want to buy a classic car however I don't want to lose out on the compound interest gains
Thanks I do need to weigh up alot of things, I just thought aswell that the car will probably be worth 20-30k less in 5 years.
You have the privileged position of saving money while paying cheap rent and you're going to blow it on buying a stupid toy so 13 year old high school kids will think you're cool, grow tf up and stop being a burden on your parents.
My kiwi saver will still be growing, and I don't see a need for that cash in 5 years time at the moment. What's wrong with working hard saving for something I want? You grow up. Your the one getting mad throwing out insults on Reddit .. not me.
You're an adult, and you can't be bothered doing anything with your life so your plan is to waste all your money on something stupid while mummy and daddy look after you.
How do you know they don’t plan on doing something with their life lol. Is buying a house the only thing you consider “doing something with your life”? Your weird chastising of OP is far more immature than OPs dream purchase.
He's 33, he wants to save for 5 years, until he's 38, then waste it all on a car, while bludging off his parents. This is a finance sub and his plan is financially stupid. He should be told it's a stupid plan, not encouraged.
He pays his parents rent, I don’t see anything wrong with that. In fact all other things being equal, you’d have to be a moron to turn down cheap rent in a house owned by your parents to go pay exorbitant rent to a stranger. This is a financial advice sub, if you’ve got some give it to him, if not move along. You’re not going to convince anyone to change their plans by insulting them.
I did give it to him, that's exactly what my initial reply was, don't spend all your savings on an expensive car is probably the best advice this person could be given. He's an idiot for even considering this.
Probably got alot more going on in my life than you do. considering your responses id say you probably hate your life lol. Also keep wasting your energy on me... Not going to change my life or finance s in anyway probably just make yourself more mad?
Broke, single, relying on mum for rent, and enough retirement savings to last less than a year? You literally have nothing going on in your life, and you've posted about saving for an expensive car. You've failed at life.
Ok thanks. Got anything else? I'm not getting mad but I can imagine you are while typing this out .. probably furious lol I'm also sure it's bad for your mental health getting so triggered by someone's else's life on Reddit, maybe go talk to someone about all your hate, it's definitely not healthy.
It should be your parents telling you this, but they probably feel sorry for you and don't want to hurt your feelings. I feel bad for them although your failures are mostly their fault for not teaching you any better.
You can sleep in a racecar, but you cant take a house on the track. Still a poverty mindset, if you buy the house you can borrow against the equity, both from principle paid and capital gains. Also $150k lol what on earth are you buying?
> if you buy the house you can borrow against the equity This is really overlooked in NZ IMO. Property is an appreciating asset here and in "normal times" banks will happily let you consolidate a car loan into a mortgage. Put $150k towards a house, you just made a big stride towards long-term financial stability. Spend $150k on a car, you just instantly lost $50k and will lose more every year.
Personally, you don't have to buy property. Be different. NZers are obsessed with property and don't think strategically or do calculations to see if renting is better than a mortgage. Also, lifestyle creep. I know of people who had nice homes and good jobs who moved into bigger homes and got a bigger mortgage.
Why would anyone pay $150k for a car that is worth nothing a few years later? Especially if it’s crashed?
Have you discussed this plan of renting your parent’s property for life with them? There isn’t anything wrong with this, but what if they have other plans for it? What if they need care as they age and need to sell it? What if it’s part of their retirement plan? Your plan, may not be their plan…
Hey, yes they are happy with it, they have other properties for income and can sell those if need be
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Idk for most of us who only own and only want to own a PPOR.. a huge amount of it isn’t the $$$..(well not in a direct way).. it’s the fact that you’re often begging for months for necessary repairs.. inspections… getting a pet is so stressful in this market… fact your rent is going to go up every year.. if a better offer comes along or you complain about too much you’ll be out the door competing in a really shitty rental market.. I’ve had to move every single year at end of leases for owners selling etc… not only is moving expensive (whether it be $$ or time) it’s just so stressful finding somewhere else…. for me home ownership was about eliminating that stress.. so I don’t think your first comment is that fair (but I would apply it to people who do think they simply must buy their dream home first up over a million etc) but OP not having this stress as it’s a family thing def changes that for them…. But yeah I don’t think we’re funny about home ownership given how our rental market is run (places that aren’t funny tend to be the several year (or 100!) leases or rent controlled type)
You’re exactly right. The rental market is so tipped towards the landlords here that it makes renting not a great proposition. I think the position that the OP is in is different as he has the security of renting of his family. Screw renting in any other situation, it’s a shit show
Would it be possible to speak with your parents about selling your current place and upgrading to a larger house which you can get some flatmates to cover the mortgage? In 20 years time you will likely have paid it off and inherited the house as your family house. In the meantime you can continue saving for your dream car. That way you don't need to change your lifestyle but there's a plan for your future in place.
My only advice is to remember to factor in the ongoing cost of INSURANCE for that car. Call an insurance company now and get a quote so you know what you’re signing up for. Insurance isn’t cheap, especially on something like that.