How Much Will My Ute Be Worth In 5 Years

[YOOT]

I am only 22, I have had my Turbo ute for 8 months and have financed most of it for 5 years. I still live at home, and I only pay a fraction of the living costs in board so I can save a lot of money.

At present I have over $25,000 a year spare after tax, board, car repayments, fuel, bills, foxtel etc. It is my aim to save $40,000 in the next 3 years ready for a house and most likely to put a ring on my long time GF's finger.

My question is, should I end up with my target savings, and all things going to plan how much would a low kms turbo manual ute that spends its life undercover and only comes out at night be worth in 5 years?

Would $25,000 be too much to ask? It is safe to assume it will be in showroom condition when I sell it. My GF will have a 6 year old Echo by that time, so between us we wanted to work out if we had enough money to purchase yet another brand new car upon marriage and a house, should we get that far.

Cheers.

[xrturb]

y dont you buy a house now and rent it out and have someone else pay it off

think about it

[Flukey]

My T when I sell it at 4yrs old, would be worth low $20's ( $22-23K ). At 5 years, it would bring something under $20K. My feeling is utes have better resale so low $20K ish.

Luke.

[Buf-Phoon]

Rednut ............no offence mate ,depending on the Ks I think you will really struggle to get 25k for a 5 year old T ute more like 18k me thinks though I could be wrong

[Mondie]

y dont you buy a house now and rent it out and have someone else pay it off

think about it

Yep, that's exactly what you should do.

l reckon $17-$20k is about right but that will depend on the long term reputation of the BA and how the relability of the T goes after they have been around for a while longer.

[Miyagi]

Go buy a house NOW. Don't wait, the time you spend waiting will mean you'll have missed out on a few years of value appreciation.

My story..

As a 21 yo and earning 35K a year I managed to buy a large old house in Norlane near Geelong with a small amount of money I wrangled together. I've got housemates in here help paying the board, bills etc and I'm slowly but surely fixing the place up. Already, I've had good estimates that my property is now doubled in its value.

Now @ 24 I'm using that collateral in the existing property to build a new house in Pt Cook (closer to Melb where I work). I've already called that yet to be built house the '2-3 year' house as once it's built my g/f and I will move in... bring in some tenants to fill the room and help with board. The idea after 2-3 years is to pull some cash out of one of the houses, maybe do the right thing by the g/f and go o/s... or build another house.

The earlier you get into creating positive debt the better off you'll be in the long run. If you can live at home then by all means invest your money in a property NOW.

Just remember, don't buy apartments they have no land value and that is what appreciates... the house on the property incurs expenses, gets old and depreciates. Also, remember that the older run down areas eventually get re-built as young families and couples move back into the area.

I sound like that wa*ker on late night tv prattling on about getting into property hehe

You need to spend money to make money and keeping it locked up in the bank is a waste of time and just allows them to invest that money itself.

PM me if you have any queries.

I don't know about you... but I wanna retire as early as possible.

Cheers,

Miyagi

[BAturb]

go and get some advice from a good accountant re: investment property, by not setting up loans correctly now my be costly in the future, I found out the hard way when tax time came around

[NYOPA]

Because of the current FBT / Tax implecations, people like me have to sell our 5 yo T's for a fixed price.

So a head's up to everyone, that my T in just under 4 years will be going for just under $16K, with all the options I have and around 150K km's on the clock.

It will also be in great condition as I love the car and look after it really well both in the way I drive it and take care of it.

So be warned that is what the tax dept says I have to do and there are plenty of other's like me........... lol, anyone want a good car in 4 years?

[BAturb]

you may have to sell your car in 4-5 years for tax reasons, but that price is only what it is worth on paper. If your car is devalued to $16,000 as a tax write off that is no reason to sell it for that, however, the car may still be worth $20,000. If you did sell it for $20,000 it would incur a $4,000 capital gain which you would have to pay tax on, but you could sell it to a friend and say the sale price was only $16,000 to avoid said capital gain

[Mondie]

I sound like that wa*ker on late night tv prattling on about getting into property hehe

You do mate but it saved me from sounding like one.

Miyagi is spot on, if you can swing it buying now and not waiting is the best plan.