2007-06-05 02:05:20 · 7 answers · asked by yahya b 1 in Cars & Transportation ➔ Buying & Selling
I would personally go with a home because after 6 months if you've made payments on time then you can refinance. A car takes longer and by the time you see a difference in your credit due to the car your car will be almost paid off.
2007-06-05 02:11:43 · answer #1 · answered by whyteboyzs10 2 · 0⤊ 0⤋
Actually, I would personally rather buy a house once the credit is better rather than a car. The reason is simple. If you sign a bad car loan, you are out 5 or 10k at the most. If you sign a bad home loan, you can pay hundreds of thousands more in interest. People used the other strategy a few years ago. They bought homes that they couldn't afford with the expectations that they would be earning more in five years when their adjustable rates expired and they could refinance. Well now with the decline in prices, some people are having trouble getting those refinances and are upside down on houses. That is not so good.
2007-06-05 02:34:34 · answer #2 · answered by Jay P 7 · 0⤊ 1⤋
Home first and pay cash for a POS car if you have to. Real property increases in value over time. Cars are a horrible investment as their value drops by 30% or more each year.
Once you have a home you build equity (in most areas). Even if you get a FHA loan or other insured loan, you can refinance after you paint, put in new carpets, clean up, etc. It is easy to build equity, and once you have that...you have credit options that are only available to homeowners.
My only suggestion...don't overbuy your house. Buy the smallest or ugliest home in a nice neighborhood because those are the ones that it is easiest to build equity with. They are the ones that hold back the value of the surrounding homes. If you remove that bottleneck by making improvements to the property, it is not unheard of to see a 20-30% increase in value in 18 months. Once you get more than 20% equity in your home value, you can get a conventional loan and dump mortgage insurance.
Don't buy a condo in a new condo complex or a modular home. A condo will not go up in price until the last unit in the development is built and sold. Modular homes NEVER go up in value. Be careful of buying homes in 1/2 finished developments too for the same reason to avoid buying a brand new condo....they are hard to sell if a potential buyer can get a brand new home in the same neighborhood for the same price you paid for yours.
I used equity from my first home to pay of my wife's college debt and her 2 car loans (yes, that is right...she borrowed money for 2 cars). I used a Equity Line of Credit on my second home to tell my boss I was quitting to start my own business.
2007-06-05 02:35:18 · answer #3 · answered by DH1 4 · 0⤊ 0⤋
Your question leave a lot of unanswered questions? Do you have a car. Do you have any established credit? Is a car important for you to get to work. Normally, if you have enough credit strength to buy a house. You should do that first. Buying a car first may reduce your chances of getting a loan approval to buy a house.
2007-06-05 02:19:52 · answer #4 · answered by Easygo 2 · 1⤊ 0⤋
buy a house, cars will always lose value. Plus a house is actually easier to find financing for. Buy the house.
10 years auto experience
2007-06-05 05:06:47 · answer #5 · answered by misty m 4 · 0⤊ 0⤋
if you can buy the house now, thene by all means do it first ,
once you start to shop around then your credit gets run and it actually hits you for points,you dont want anything on there when your buying a house. house first and then your toys.
2007-06-08 21:00:38 · answer #6 · answered by twisten 4 · 0⤊ 0⤋
a house make money it is worth more next year
a car looses value when you drive it off the lot.
you will make money if you rent out a house you will loose your car if you rent out your car.
2007-06-08 21:43:59 · answer #7 · answered by razorraul 6 · 0⤊ 0⤋