I'm a second year dentist and my current salary is about $120k a year. I have all of my college loans paid off and I am not in debt at all right now. I am currently single and I never plan to have kids (I rather use my money for a really nice car). My question is...how much would I have to earn a year to be able to purchase a new Ferrari F430 ($200k) and a $500k house?
2007-11-25 13:35:01 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The Ferrari (assuming 10% down and a 60 month term, as well as insurance and maintenance) will cost you somewhere between $4-5k each month. The house (also assuming 10% down, a good rate, etc) would cost about $3-3.5K each month.
As a generalization, when looking at your expenses, housing should be about 50% of the total... however, as the Ferrari is a total luxury item, and you will still need a car in addition to it, I would consider the cost of the Ferrari and your house should come to about 50% of your income, meaning you need a take home salary of a little over $190k. Your pre-tax salary should be around $240k.
However, with this level of income, you would most likely want to work to generate cash flow investments to protect your capital, and use the cash flow to buy luxury items like a Ferrari... but if you simply wanted to do so as you outlines, $240k/year should cover it.
2007-11-27 09:26:30 · answer #1 · answered by Paul S 7 · 0⤊ 0⤋
Approximately $250K/year or less if you go with a interest only loan. But I would suggest buying your home and saving your money and look long term. Or even paying off your house first. Liability insurance could also be high for a dentist. Maybe open your own practice.
2007-11-26 00:10:07 · answer #2 · answered by jazz 2 · 0⤊ 0⤋
You would need to earn a LOT more than the $120K you are currently earning as a dentist.
Frankly, you might be a decent dentist, but you managed to miss Business 101 and Math 101 on the way to obtaining your dental degree.
2007-11-25 21:39:19 · answer #3 · answered by acermill 7 · 4⤊ 0⤋
dont get a ferrari..just buy the house..you would have to make enough to make the payments!..what about taxes..and when that car depreciates you will still be making payments.....you can either eat the car or lose your house..
2007-11-25 21:42:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Come on, don't lower your standards. You NEED at least a $400,000 car and a two million dollar house. Anything less and you'll get no respect here on Yahoo.
2007-11-25 21:53:25 · answer #5 · answered by Anonymous · 5⤊ 0⤋
And I am the Pope. Does your mother know you are on her computer again Skippy?
2007-11-25 21:44:12 · answer #6 · answered by Otto 7 · 5⤊ 0⤋