Car to house value ratio

[Nakadah]

It kind of sounds like you are jealous of the guy for having a Huracan when you have a 7 figure house. If you can afford a 7 figure house there is no reason why you cannot afford a Huracan in the garage.

From time to time I go on long walks around different communities in the city and as I walk past the houses I look at the condition of the house as well as the cars parked in front. What I notice is that there are a fair bit of $5k - $10k cars parked in front of so many houses. Houses which the "owners" are emotionally invested in believing that they are worth 1/2 million and more. If that were the case, how come their second most expensive possession is 1/100 of the price of their most expensive possession? I try to place myself in the mentality of the homeowner and better understand their mentality, but I have been unsuccessful...

Anyways... Your core competencies are in being a lawyer and more specifically in whatever branch of law you have specialized. You don't have enough transferable skills/knowledge to be successful at operating a dealership. You are passionate about cars and your motivation to open a dealership is so that you have at your disposable a fleet of interesting cars. This does not sound like a good reason to open a dealership. You might be better off focusing your resources on furthering your law career. In time when you are financially better of you can assemble your own fleet of cars.

[The_Rural_Juror]

Depends how 7 figures of a house it is. Low 7 figures can't afford a Huracan.

[blownz]

From time to time I go on long walks around different communities in the city and as I walk past the houses I look at the condition of the house as well as the cars parked in front. What I notice is that there are a fair bit of $5k - $10k cars parked in front of so many houses. Houses which the "owners" are emotionally invested in believing that they are worth 1/2 million and more. If that were the case, how come their second most expensive possession is 1/100 of the price of their most expensive possession? I try to place myself in the mentality of the homeowner and better understand their mentality, but I have been unsuccessful...


Funny, I always like to try and "figure out" the type of people in some houses in the neighborhood. There is the extreme you mention, but also the other where the house isn't much and there are really nice cars outside. There is a house I know of that for about 2 years had a RS7 and new GTR parked in the driveway year round, including winter (never inside the garage, always outside even in snow). I always wondered why you would buy such nice cars just to have outside.

Then my son helped clear things up saying that apparently the kids that live there were drug dealers. Parents owned the house and their Ford Flex and some other regular car were always parked in the garage. lol

For the OP this sounds like fun, but a ton of work. I agree with a few comments that this might be better as a retirement hobby thing when the time comes. That Oraizen looks cool. Oddly enough I was about 5 businesses south of that on Saturday and didn't even notice it as I drove by.

[ExtraSlow]

Plenty of $75,000 vehicles parked in front of $250,000 townhomes too. Don't think that makes any sense. In the end,value of house and value of car are really hard to make any kind of ratio-based rules that apply to everyone.

[Disoblige]

I don't really get it. What is wrong with seeing a $10k car with a $500k home? That's pretty standard. Just means that person or family is living within their means and don't need to buy the latest and greatest if their $10k car works...

[redbaron303]

1

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Plenty of $75,000 vehicles parked in front of $250,000 townhomes too. Don't think that makes any sense. In the end,value of house and value of car are really hard to make any kind of ratio-based rules that apply to everyone.

The land of never never plans.... 96 month $0 down auto-loans and 5% down Mortgages.
Everyone is rolling deep to impress their 'friends' and instagram.

[Team_Mclaren]

Plenty of $75,000 vehicles parked in front of $250,000 townhomes too. Don't think that makes any sense. In the end,value of house and value of car are really hard to make any kind of ratio-based rules that apply to everyone.

This, I dont think there's a co-relation. Everyone values something different. I dont know why people assumes someones in the deep when they drive a car valued @ over $x. Some just sounds bitter or jelly?!

[killramos]

Yea people are just judgemental bastards as a general statement.

[Nakadah]

I don't really get it. What is wrong with seeing a $10k car with a $500k home? That's pretty standard. Just means that person or family is living within their means and don't need to buy the latest and greatest if their $10k car works...

It seems to be pretty normal and I would like to understand why. Can you please walk me through how this means that the individual/family is living within their means? What % of your net worth should your home represent? What % of your income should go to cover expenses associated with the home?

[vengie]

It seems to be pretty normal and I would like to understand why. Can you please walk me through how this means that the individual/family is living within their means? What % of your net worth should your home represent? What % of your income should go to cover expenses associated with the home?

Different answer for everyone, and completely depends on your goals/ timelines.

[muse017]

A good friend of mine have owned brand new Benz, BMWs for the past 5~6 years while he rented an $1000/month apartment with roommates. He is actually doing way better than most of his friend with 500k house this downturn lol

[The_Rural_Juror]

10k car outside of a 500k home could mean that they have different priorities such as hookers and blow. Who are we to judge?

[max_boost]

10k car outside of a 500k home could mean that they have different priorities such as hookers and blow. Who are we to judge?

Exactly lol

[killramos]

Is a 500k house the new litmus test for being rich?

No way that gets you into the Aspen-coe Club.

[ExtraSlow]

Are you guys all students or something?

[never]

Is a 500k house the new litmus test for being rich?

No way that gets you into the Aspen-coe Club.

Yeah, isn't that basically the average price of a house in Calgary?

[killramos]

I mean we are in a recession. Maybe 500k is ballin out of control these days.

[ExtraSlow]

I mean we are in a recession. Maybe 500k is ballin out of control these days.

Maybe all our homes are worth no more than $500k now?

[killramos]

Maybe all our homes are worth no more than $500k now?

They never were lol

[The_Rural_Juror]

True

[killramos]

True

I do appreciate the most sincere flattery

[The_Rural_Juror]

^--- biggest fan. this guy.

[ExtraSlow]

93899

[Disoblige]

It seems to be pretty normal and I would like to understand why. Can you please walk me through how this means that the individual/family is living within their means? What % of your net worth should your home represent? What % of your income should go to cover expenses associated with the home?

Is a 500k house the new litmus test for being rich?

No way that gets you into the Aspen-coe Club.

Yeah, isn't that basically the average price of a house in Calgary?
I was referring to this really. $500k houses is just an average house these days. What's wrong with a $10k car? A used Honda that's 10 years old might be only worth $10k or less and there's nothing wrong with that.

You buy a shitty cookie cutter downtown condo for $400-500k (new) easy.

[Nakadah]

I was referring to this really. $500k houses is just an average house these days. What's wrong with a $10k car? A used Honda that's 10 years old might be only worth $10k or less and there's nothing wrong with that.

You buy a shitty cookie cutter downtown condo for $400-500k (new) easy.

Thank you for the well written and elaborate explanation how what is at the moment normal is a reflection of how an individual/family is having a balanced life and more importantly, within their means! You made it possible for me to understand how this norm is an OK normal and where I was wrong!

[Disoblige]

Thank you for the well written and elaborate explanation how what is at the moment normal is a reflection of how an individual/family is having a balanced life and more importantly, within their means! You made it possible for me to understand how this norm is an OK normal and where I was wrong!
You're welcome, weirdo.

If you want a truly elaborate explanation, ask Mitsu3000gt.

[killramos]

You're welcome, weirdo.

If you want a truly elaborate explanation, ask Mitsu3000gt.

:rofl:

[Nakadah]

You're welcome, weirdo.

If you want a truly elaborate explanation, ask Mitsu3000gt.

You made a statement that you could not justify when asked to do so. Name calling and leaving negative rep does not change that fact. In my previous comment I inserted "balanced life", something that you did not notice. This is what my original post centered around. Canadians are obsessed with the value of their homes and believe that as the value of their home expands (fueled mostly by debt in part thanks to record low rates) so does their net worth, but one of the results is living a less balanced life. What I mentioned as my observation is a symptom and not a cause - i.e. your second most expensive thing being only 1% the value of your most expensive thing. This idea of a balanced life is where my opinion that OP should have no problem driving a Huracan if he can live in a $1 Mil.+ house comes from.

[killramos]

TIL that I should be driving way more expansive cars relative to the value of my home.

What time is the ‘Rarri dealer open until?

I need to get out there and rebalance my life.

[vengie]

You made a statement that you could not justify when asked to do so. Name calling and leaving negative rep does not change that fact. In my previous comment I inserted "balanced life", something that you did not notice. This is what my original post centered around. Canadians are obsessed with the value of their homes and believe that as the value of their home expands (fueled mostly by debt in part thanks to record low rates) so does their net worth, but one of the results is living a less balanced life. What I mentioned as my observation is a symptom and not a cause - i.e. your second most expensive thing being only 1% the value of your most expensive thing. This idea of a balanced life is where my opinion that OP should have no problem driving a Huracan if he can live in a $1 Mil.+ house comes from.

Hell my car is worth 0.7% of my most expensive thing.
Apparently I'm not balanced and my life must be chaos!

Why? because it takes me from A-B and is cheap as hell to maintain, nor do I care what people think of me when they see me driving it.
I have certain goals and targets to achieve before I start to play again.

[Buster]

TIL that I should be driving way more expansive cars relative to the value of my home.

What time is the ‘Rarri dealer open until?

I need to get out there and rebalance my life.

More than you can afford, pal.

[ExtraSlow]

I am out of rep to give out, but most people in this thread deserve some.

[The_Rural_Juror]

I wish I had more reps to give too. 2 reps is too little with the rampant thread derails.

[ExtraSlow]

I wish I had more reps to give too. 2 reps is too little with the rampant thread derails.

Your rep power is weak.

[ThePenIsMightier]

Based on a simple method to keep complete idiots out of rampant debt, we shouldn't be spending more than 35% of our net monthly income on housing and 15% on transportation...

BRB, I gotta move into a house 2.5x more $ and pick up a massive car loan. I would've thought four cars was enough, but book says.
As for savings, I am failings. #HookersAndBlow

[Team_Mclaren]

LOL, my vehicles are "worth" half of what my house does... I must be doing it right!

[Buster]

LOL, my vehicles are "worth" half of what my house does... I must be doing it right!

Yes, yes you are

[ExtraSlow]

All three of my vehicles together are worth ~6% of my house.

[ThePenIsMightier]

All three of my vehicles together are worth ~6% of my house.

Ok, but it's supposed to be about monthly payments and how much of your net income you're spurting all over those shower tiles.
I think it's supposed to include gas and insurance, etc, too... Le disappoint

[ExtraSlow]

Oh, I have no monthly payments for vehicles (for another few weeks anyway). Is that wrong?

[The_Rural_Juror]

I am all out of reps, I am so lost without them.
I know you were right believing for so long.

[ThePenIsMightier]

Oh, I have no monthly payments for vehicles (for another few weeks anyway). Is that wrong?

I think it's wrong. You and me are lost. And, if we're lost, we are lost together.
Wanna go half on a used F12 Berlinetta?

[Disoblige]

You made a statement that you could not justify when asked to do so. Name calling and leaving negative rep does not change that fact. In my previous comment I inserted "balanced life", something that you did not notice. This is what my original post centered around. Canadians are obsessed with the value of their homes and believe that as the value of their home expands (fueled mostly by debt in part thanks to record low rates) so does their net worth, but one of the results is living a less balanced life. What I mentioned as my observation is a symptom and not a cause - i.e. your second most expensive thing being only 1% the value of your most expensive thing. This idea of a balanced life is where my opinion that OP should have no problem driving a Huracan if he can live in a $1 Mil.+ house comes from.
I did not leave you any negative rep. I don't give people negative rep.

You're on a next level of uptight that is pretty insane. Relax.

And a statement I can't justify? I go walk in a neighborhood where all the houses have a market value of $500k (normal average houses in average communities) and I see many cars owned by different people with different lifestyles and many of them are worth around $10k. Some a bit more, some less. Common sense stuff that most people can observe daily.

[killramos]

LOL, my vehicles are "worth" half of what my house does... I must be doing it right!

Just need to keep everything in balance

[ThePenIsMightier]

I did not leave you any negative rep. I don't give people negative rep.

You're on a next level of uptight that is pretty insane. Relax.

And a statement I can't justify? I go walk in a neighborhood where all the houses have a market value of $500k (normal average houses in average communities) and I see many cars owned by different people with different lifestyles and many of them are worth around $10k. Some a bit more, some less. Common sense stuff that most people can observe daily.

I noticed he was complaining about someone else he assumed was you giving him neg Rep and I hadn't been keeping up with this thread. I knew I needed to spread some Rep around, so I decided to neg Rep and that apparently dragged him down to Red bar status!
Now I kind of feel bad even though it was a rather fiery resurrection to crawl up your ass after years of silence.

But, it is the way.

[speedog]

All three of my vehicles together are worth ~6% of my house.

Less than 1.5% here but then both of our vehicles are over 16 years old, we really haven't felt the need to have fancy or newer vehicles plus I can fix a lot of shit on our older vehicles which I don't mind doing.

[shakalaka]

Oh man - this thread got derailed big time. Been super busy so haven't had a chance to reply but I've read through all the responses. I wanna thank everyone for their input and in fact the ones with actual, constrictive advise/opinion in regards to the topic. Also, for the people that PM'ed, I will get back to you in due course - things have just been a bit hectic with a couple of trials coming up so haven't had a chance.

As a general note though, I definitely agree with the ones that have said it's not something that's going to be easy and straightforward and in fact I do see the point in people saying you can't half-ass something like this and it's either all-in or nothing. This was more so wishful thinking at this point and essentially a small thought in the back of my mind and has been so for several years already. And for all we know will remain the same forever but who knows. In this modern day and age though, I think all will agree that one income stream simply does not cut it for most and I am always keeping my options open in that regard. That's how I get into real estate and land development but as my luck would have it the oil crash and COVID all had to happen before I could actually take-off and do something with it.

And co-relation to the size of houses vs cars - I can't say there is any empirical evidence as such and it's mostly going to be something that's going to vary case by case. Hell there's a house by our area, which I'd say is worth perhaps around 1.2 -1.3 mil mark and I see a R8, F430, Gallardo and a RR parked outside it (thought could be friends/family), another likely worth around 1.5 has a 911 Turbo, AMG GTS, X6M, M3 and a modified RX8. And there are houses that are worth 5-6 mil close by as well and I don't see anything spectacular outside there. Though, with their massive ass driveways, I am sure things could be very different in the garage. I did see a bright green Aventador SV outside one of these a while back. Anyway, more expensive house is just that and not everyone deems it appropriate to drop significant amount of moolah on depreciating assets like cars even if they have the means.

[Buster]

93915

[killramos]

This is a very disappointing split. I got my hopes up for nothing.

[Disoblige]

All three of my vehicles together are worth ~6% of my house.
Same here.

Back to the original post, if one wants to place themselves in the mentality of a homeowner, they might find more success if they first figure out how to even become a homeowner.

[ThePenIsMightier]

... I wanna thank everyone for their input and in fact the ones with actual, constrictive advise/opinion in regards to the topic...

Constrictive advise for the win!

RNPJgmLEfD4

[Masked Bandit]

I guess if I were to add up the current market value of the vehicles in the house it would shake out to about 11%? Do I get a cookie now?

[shakalaka]

Constrictive advise for the win!

RNPJgmLEfD4

Way too many grammar Nazis up in this bitch yo.

[Disoblige]

I guess if I were to add up the current market value of the vehicles in the house it would shake out to about 11%? Do I get a cookie now?
No, why aren't you buying a lambo? You can obviously afford it if you have a $500k house.

[Masked Bandit]

No, why aren't you buying a lambo? You can obviously afford it if you have a $500k house.

Why do you assuming I don't have a Lambo?

[pheoxs]

100k$ mustang, 50k$ trailer. Only way to live life.

[Xtrema]

This, I dont think there's a co-relation. Everyone values something different. I dont know why people assumes someones in the deep when they drive a car valued @ over $x. Some just sounds bitter or jelly?!

This.

Not everyone treat cars the same. Some of my neighbors are fine with 20 year old Maxima. Some are driving R8s and 458s. It's personal. I don't see why people care what other people should and shouldn't do.

[ercchry]

Why do you assuming I don't have a Lambo?

Pls hurry up and purchase a trackhawk

[FraserB]

Are we using the city assessed value? And are we including things like travel trailers in the calculation?

[98brg2d]

I'm pretty sure cars depreciate far more and far quicker than houses (which generally fluctuate up and down) so it makes sense that any car more than 3 years old is valued at a much lower percentage of house value than a new car. Catch somebody at the point of purchase of a new car and the percentage will be much higher. Most people don't change cars every few years, more like 5 to 10 years, so average age is ~5 years old and average car value is <50% of new.

The average used car price is under $20,000 (https://www.theglobeandmail.com/drive/mobility/article-in-the-market-for-a-car-see-how-much-it-could-cost/) so it makes sense that the average car, parked at the average house ($443,000, see https://www.cbc.ca/news/canada/calgary/covid19-housing-prices-decline-calgary-cmhc-1.5625344) is a small percentage of house value. This isn't rocket science.

[Tik-Tok]

This.

Not everyone treat cars the same. Some of my neighbors are fine with 20 year old Maxima. Some are driving R8s and 458s. It's personal. I don't see why people care what other people should and shouldn't do.

As a shallow person, how am I supposed to evaluate myself, if I can't compare my visible belongings to my neighbors?

[Masked Bandit]

Pls hurry up and purchase a trackhawk

Again, you're assuming I haven't already.

[ercchry]

Again, you're assuming I haven't already.

Well I Will assume my invite to the house warming was lost in the mail then :rofl:

[Masked Bandit]

Well I Will assume my invite to the house warming was lost in the mail then :rofl:

Up here in Aspen it's an open invitation, just roll up and start knocking on doors. You might be surprised how many lonely trophy wives are just sitting around waiting for someone to...ring their bell.

[Tik-Tok]

Up here in Aspen it's an open invitation, just roll up and start knocking on doors. You might be surprised how many lonely trophy wives are just sitting around waiting for someone to...ring their bell.

Yeah, but they're all Karen's and end up wanting to talk to my pimp.

[Mitsu3000gt]

There's a house I used to drive by that looks like it will collapse at any moment, it's a total dump - just really old with zero upkeep. Outside under a ripped cloth makeshift carport are a new CLS and S class, probably a combined $300K+ of vehicles. Probably a 1:1 house/car value ratio haha. I think it's best to just not assume anything - you never know what people's priorities are or what makes them happy, so who am I to judge.

[ExtraSlow]

And are we including things like travel trailers in the calculation? Shit I didn't include my trailer. Although insurance paid for that so it hardly counts, or ddoes it?

Fack, I get confused. need to listen to some Phil to calm down.

[ercchry]

There's a house I used to drive by that looks like it will collapse at any moment, it's a total dump - just really old with zero upkeep. Outside under a ripped cloth makeshift carport are a new CLS and S class, probably a combined $300K+ of vehicles. Probably a 1:1 house/car value ratio haha. I think it's best to just not assume anything - you never know what people's priorities are or what makes them happy, so who am I to judge.

Safe to assume they just sell drugs :dunno:

Down here in the woodlands there is a shoebox on the main blvd without a garage even... A-class RV, GT-R, and Rubicon plus some sort of boring subaru... total value exceeds home

[The Cosworth]

This.

Not everyone treat cars the same. Some of my neighbors are fine with 20 year old Maxima. Some are driving R8s and 458s. It's personal. I don't see why people care what other people should and shouldn't do.

#humblebrag

[A790]

Honestly, when I see a nice car in front of a mediocre house, I assume that person is relatively decent with money (ie - living below their means re: house so they could have the toy) and give them the benefit of the doubt.

I'm usually proven wrong, but not always.

[Mitsu3000gt]

Safe to assume they just sell drugs :dunno:

Down here in the woodlands there is a shoebox on the main blvd without a garage even... A-class RV, GT-R, and Rubicon plus some sort of boring subaru... total value exceeds home

Haha, could very well be, but I will never know!

[The_Rural_Juror]

I don't get expensive non-utilitarian cars. What can a Lambo do that a Fit can't?

[ercchry]

Honestly, when I see a nice car in front of a mediocre house, I assume that person is relatively decent with money (ie - living below their means re: house so they could have the toy) and give them the benefit of the doubt.

I'm usually proven wrong, but not always.

Still justifying the C8 I see... :rofl:

[A790]

Still justifying the C8 I see... :rofl:

It's a business expense mate. That's the funny thing about it is that I could legit write it off.

EDIT: Ha yea I guess I'm justifying it lol.

[The_Rural_Juror]

What's up with the huge armrest and ipad in the c8?

[FraserB]

I don't get expensive non-utilitarian cars. What can a Lambo do that a Fit can't?

How many shallow women can you pick up with a Fit?

[The_Rural_Juror]

How many shallow women can you pick up with a Fit?

Probably about 6-8 with 16.6 cubic ft of cargo space.

[ExtraSlow]

How many shallow women can you pick up with a Fit?

6 19-year-old Asian gals.

[killramos]

Safe to assume they just sell drugs :dunno:

Outside of Calgary that’s a pretty widespread assumption.

I remember picking my cousin up from the airport a few years back, drove past a nice clean Audi driven buy a mid 20’s male and she exclaimed “well look that’s obviously a drug dealer”. I pointed out that people in Calgary just have jobs and can afford nice things if they want them and that really shut her up.

On Vancouver island it’s either drug dealers or daddies money. In Calgary it’s just debt and indentured servitude lol.

[XylathaneGTR]

Are we using the city assessed value? And are we including things like travel trailers in the calculation?

What about value at new vs. present day value for our cars? My grandpa volvo was 85k new, but i'd be lucky if I get 50 for it now. With one value - my life is balanced and I have achieved enlightenment but with the other value - chaos. What's a man to do - this will keep me up at night!

[ercchry]

Outside of Calgary that’s a pretty widespread assumption.

I remember picking my cousin up from the airport a few years back, drove past a nice clean Audi driven buy a mid 20’s male and she exclaimed “well look that’s obviously a drug dealer”. I pointed out that people in Calgary just have jobs and can afford nice things if they want them and that really shut her up.

On Vancouver island it’s either drug dealers or daddies money. In Calgary it’s just debt and indentured servitude lol.

The obvious flop house is the giveaway in this example though... they don’t distribute drugs... they sell em :rofl:

I’m also assuming Mitsu was on cocaine duty at the time for the trader bros

[Tik-Tok]

Present day value only.

I go for beer at Limericks every few weeks. My favorite past time on the patio is watching people immediately lose $20g as they pull out of the Dodge lot in their brand new truck.

[The_Rural_Juror]

6 19-year-old Asian gals.

That's so racist.

93918

[pheoxs]

present day value only.

I go for beer at limericks every few weeks. My favorite past time on the patio is watching people immediately lose $20g as they pull out of the dodge lot in their brand new truck.

but i saved so much, they gave me 12k off msrp

[Xtrema]

How many shallow women can you pick up with a Fit?

Drugged or not?

[killramos]

How many shallow women can you pick up with a Fit?

Is this a variation of the joke with Jewish people?

Asking for SKR

[Disoblige]

6 19-year-old Asian gals.
But just one Canadian.

Ba-dum bum... tooosh!!!

[killramos]

Haha. It’s funny because Canadians are fat

[vengie]

Haha. It’s funny because Canadians are fat

Depends if you're using BMI or not.
#jackedbutfat

[Tik-Tok]

Depends if you're using BMI or not.
#jackedbutfat

BMI doesn't matter because I lift bro.

[killramos]

BMI doesn't matter because I lift bro.

Repped haha

[jwslam]

I spent more at Tiffany than I did on my car. Did I fuck up?

[killramos]

I spent more at Tiffany than I did on my car. Did I fuck up?

Definitely lol

[ExtraSlow]

Who the fuck is Tiffany? Aside from the 1980s singer?

[jwslam]

Who the fuck is Tiffany? Aside from the 1980s singer?
See danger zone
93920

[Buster]

My favorite part of that graph is that there is nothing less than 4 on the crazy axis.

[killramos]

Ahhh the Vicky Mendoza Diagonal. Always relevant.

[ercchry]

The real life skill is in finding out crazy quickly... they always hide it so well :cry:

[killramos]

The real life skill is in finding out crazy quickly... they always hide it so well :cry:

93922

Yup...

[max_boost]

The real life skill is in finding out crazy quickly... they always hide it so well :cry:
lol what happenEd now good looking?

So what is the ratio? My ratio is about 1:10 lol