Vehicle > Home value

Dolby

Dolby

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What (in your opinion) should the value of your car/house be in relation to each other?

For example you earm R400,000pa ... your car is 50% (R200,000) of that and your house worth double that (R800,000).
 
There is no 'should' when it comes to the value of your car because a car is always a liability and therefore a drain on income. You can earn R1ml/year and drive a clapped out citi for all it matters. Warren Buffet famously drove a 2ndhand car for like 20 years - now he drives a bog-standard oldsmobile.
 
That's why it is in your opinion ;)
 
I did ask - in your opinion - what it is.

I've seen guys driving into my brother complex with R350k cars and living in an R800k house. I'd guess your house to be quite a bit more than your car - maybe 5x as much ?
 
I won't be spending more than R200,000 on a car anytime soon- but will be more than happy to spend double my salary on my house.
 
I also do not really understand why people would spend that much on cars, it makes no sense. Keeping up with the Joneses.
 
u only spend a fortune on a car if you wanna show off and try impress people with ur money because your persoanlity hasnt impressed anyone other than your mom...

a car loose value every day, a house gains value, or at least keeps its value, so in my opinion buy as expensive house as you could possibly manage to pay off, (or 2 small ones) and keep it as investments for your old day, and yeah drive a citigolf with aircon or something to get you from a to b. :)
 
I like cars more than houses.

I will spend more on a car as long as I have a decent house.
Different strokes I guess.

Houses can lose their value sometimes more than cars... its the recession people, there tons of people out there that have lost 100s of 1000s of Rands on their houses...
 
I drive a 11 year old Nissan Sentra, but I live in a 1.4mil house. Car is paid for. Rather put money into my house...
 
Gee whizz, JK8, your reationale is brilliant. "Spend more on your car, your house might lose value faster!" Great argument. Do you benefit from AA or BEE, by any chance?

If one is so inclined, you can get a classic car for R 200 000 that puts away any modern car, in terms of style as well as performance.
 
albert123 said:
u only spend a fortune on a car if you wanna show off and try impress people with ur money because your persoanlity hasnt impressed anyone other than your mom...
Click to expand...

Almost as weak as the car-penis size comparison. :rolleyes: What if you can afford to spend a fortune on a car, and just love driving a car you like?

Back to the OP, there is no real 'ratio' IMO. Someone might earn, say, R35k per month, but then he might also (because of the nature of his job), get a R10k travel allowance, so then he sits with an expensive car, and an average house, which is what you can afford if you earn R35k.
 
I paid 93 000 for my house, now where would i find a decent new car for that?
 
IRG said:
did you buy it 20 yrs ago ??
Click to expand...

:D no about 8.:D
Was very run down but i fixed it. :D Very nice place now. Valued at +- R 850 000 , and that is not a very good price but i took out all the bedrooms and made a huge living room and one huge bedroom.
There is a fully equipped flat on the house but it is not suited for a family where you want to keep an eye on your kids.
 
Mila said:
:D no about 8.:D
Was very run down but i fixed it. :D Very nice place now. Valued at +- R 850 000 , and that is not a very good price but i took out all the bedrooms and made a huge living room and one huge bedroom.
There is a fully equipped flat on the house but it is not suited for a family where you want to keep an eye on your kids.
Click to expand...

Nice!

I've always wanted to buy a run down house and fix it up!

They had a few nice ones in Melville / Westdene ... but I'm so sure about those areas. Plus I don't have the capital :/
 
It was a labour of love and things happend so slowly. I lived in the flat while the house was worked on.
I think that is why i was so upset when the neighbours moved people into their garage.

But now at least i have a good deposit on my nest house. :) But i would miss this one.

I am looking in bedford view for a new one to fix up :) There are a bunch of old houses up the hill.
 
In my complex most people rent (I own) they all have fancy cars : Honda s200, X5, Q8, c class, 3 series etc.

Even worse is that lots of them are students and dont work... dad pays for the car and the rent.

That bubble is going to pop soon !
 
Our rule of thumb is 1/3 on house, 1/3 on investment (including insurance) and 1/3 expenses (includes car).
 
Nerfherder said:
Even worse is that lots of them are students and dont work... dad pays for the car and the rent.

That bubble is going to pop soon !
Click to expand...

+1

Those are the worst types.

Living out of someone else's purse ends sooner or later and then they're gonna get the shock of their lives.
 
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