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E46 M3 (2001-2006)

View Poll Results: How high do you feel someone's salary should be before purchasing a new 05/06 M3?
0 - 50K 21 5.63%
50K - 65K 28 7.51%
65k - 80K 50 13.40%
80K - 100K 96 25.74%
100K - 120K 71 19.03%
120K and up 107 28.69%
Voters: 373. You may not vote on this poll

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  #126  
Old 04-19-2006, 09:01 AM
DMD DMD is offline
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Location: Iowa
 
Join Date: May 2002
Posts: 223
Mein Auto: 05 PY M3 Coupe
Quote:
Originally Posted by kaweahnet
Nothing is perfect, and at times my rental properties and their tenants can be frustrating. However, as stated earlier, if you keep your day job then the occasional $1k-$2k per year will be tolerable. But even then ... you usually make up for it at tax time. Keep in mind ... this is ONLY cashflow we're talking here. If you shop well, research markets and buy at the right time I can almost guarantee over a 5 year period you will show a positive cash flow (all things considered such as poor renters, repairs and taxes). It may not be much, but cashflow is something you don't even talk about with 401k or IRA's.

Even, if you really screw up your buying decision and renters are in and out ... you still have the appreciation of the property. Don't get me wrong, I've seen people screw up real estate by not researching markets. But that is because they didn't do their due dilligence. It's not free money by any means, and it takes more work than throwing it in your 401k ... but it is much more lucrative. The best part is, if you start real estate investing today, in about 5-10 years you will be receiving good cash flow off of your properties and have a nice nest egg for the future. But, as I stated earlier, it does take work.

IMHO ...

If it was easy, everyone would do it.
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  #127  
Old 04-19-2006, 01:08 PM
Ventoux Ventoux is offline
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If you are unable to see the merits of a 401k account as they are at this point in time i cant help you, but i can almost assure you the tax rate for myself in 20 years, will be less than it is now.

And another thing, not everyone lives in California. 700k here would buy you a 5000 sq foot trophy home in the best neighborhoods.

and like the other poster said, what is your retirement plan?

Quote:
Originally Posted by Laszlo
I can't stand 401k conversations. Reality check
people. Sure, it is nice to know that when you are
sixty, or even sixty-five, that your 401k nest egg is
going to be worth a whopping $1.5 or less for
others.

Well when you take that fat egg out in 2036, you get
taxed accordingly on that $1.5 million. I wonder if
taxes will be more or less in the year 2036? I will bet
that they will be higher. So, it is 2036 and you have just
got taxed on your $1.5 million, so not let us assume
you have around 700k. Not bad! Or is this a delusion
of grander?

Did you ever consider future inflation adjustments
into the entire 401k scheme? No, because you were too
busy looking at those happy elders on the cover of the
401k brochure who are millionaires. And you are going
to do the same. But you forget about the tax on that
$1.5 millions, so you really have 700k. Not such a
millionaire after all.

Now, 700k still sounds like a lot of money, because
today, you can buy a 1000 square foot salt-box house
in shoddy Sacramento (on the other side of the tracks)
with leaky pipes and broken toilet. And a loaf of
bread is only $2.99 and a gallon of gas is $3.10 a
gallon.

Okay, back into the time machine and it is now 2036. And
you have that 700K. And that 700k home in shoddy
Sacramento on the other side of the tracks (still has
that damn broken toilet and leaky pipes), is now worth
a huge and outrageous amount of 1.8 million! Wow!

But a loaf of bread is $9.50, a gallon of gas (if you
can still get some) is $15.90 a gallon, and a
round-trip plane ticket from San Francisco to New York
is $2,100.00 (and that is on JetBlue) and a pack of
smokes is $13.99 -- you started smoking because you
thought you were going to be a millionaire living the
high-life at ripe old 60 or 65, but in fact, you are
basically forced into a 30 foot trailer in New
Orleans, on the other side of the tracks, and you are
eating hotdogs for dinner until you teeth fall out.

I am 35. And I remember 25 years ago, when I was 10, a
candybar was 25 cents. It is now over $1.00.
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  #128  
Old 04-19-2006, 01:14 PM
Ventoux Ventoux is offline
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Mein Auto: '07 335i - Ti Silver
another good article..

"In California -- where even the pool boy seems to drive a BMW -- 40 percent of buyers are upside down (and by an average of $4,700)."


http://money.cnn.com/2004/01/23/pf/autos/upside_down/
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  #129  
Old 04-19-2006, 02:11 PM
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JonathanIT JonathanIT is offline
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Location: L.A., but I'd rather be on Brokeback Mountain
 
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Quote:
Originally Posted by Moderato
What about the cost of maintaining the home and fixing problems & damages? What about the months were you don't have the house rented and need to pay that bill out of pocket? What about when your tennants don't come up with the rent money? Laws make it hard to kick people out. It's not as easy as you make it sound, IMO.
I'm in the rental property game and it's pretty damn easy. I consider myself retired, it takes so little time out of my day. I'm surprised how little the upkeep/maintenance issues cost. We bought an 11 unit residential/2 unit commercial storefront building in 1998 for around $800K, today it's worth more than $3M. Our refinanced mortgage is less than $500K; we have over $2M equity we can use to invest in something else. The (small) one bedroom units were going for under $500 back then, I just rented one out last month for $1,200. I don't see how anyone can afford it myself, but I had people lining up to sign a lease. Income property is a no brainer, especially in L.A.

--J.
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Last edited by JonathanIT; 04-19-2006 at 02:13 PM.
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  #130  
Old 04-19-2006, 02:37 PM
Laszlo Laszlo is offline
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Quote:
Originally Posted by Ventoux
If you are unable to see the merits of a 401k account as they are at this point in time i cant help you, but i can almost assure you the tax rate for myself in 20 years, will be less than it is now.

And another thing, not everyone lives in California. 700k here would buy you a 5000 sq foot trophy home in the best neighborhoods.

and like the other poster said, what is your retirement plan?
Too bad, because living in California is worth every penny.
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  #131  
Old 04-19-2006, 05:59 PM
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JonathanIT JonathanIT is offline
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Location: L.A., but I'd rather be on Brokeback Mountain
 
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Quote:
Originally Posted by Laszlo
Too bad, because living in California is worth every penny.
I second that!

--J.
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  #132  
Old 04-19-2006, 06:35 PM
Ventoux Ventoux is offline
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Quote:
Originally Posted by Laszlo
Too bad, because living in California is worth every penny.
to each his own.

i do like visiting,

I would like to live there, but Id need to make a million bucks a year 1st.
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  #133  
Old 04-23-2006, 11:02 PM
M3NNIS M3NNIS is offline
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[QUOTE=LA525iT]I know a starving actor living in a $700 per month apartment that he pays for scraping together substitute teaching assignments who drives a 996 (paid for with inheritance money, leaving him no change).

I also know a multi-millionaire (talking about net worth over $25M here) who drives a 15 year old Toyota half-ton pickup with no air-conditioning (yes, that's her primary car).

Thats why shes a millionaire!
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  #134  
Old 04-23-2006, 11:09 PM
DMD DMD is offline
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Location: Iowa
 
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Mein Auto: 05 PY M3 Coupe
[QUOTE=buschy]
Quote:
Originally Posted by LA525iT
I know a starving actor living in a $700 per month apartment that he pays for scraping together substitute teaching assignments who drives a 996 (paid for with inheritance money, leaving him no change).

I also know a multi-millionaire (talking about net worth over $25M here) who drives a 15 year old Toyota half-ton pickup with no air-conditioning (yes, that's her primary car).

Thats why shes a millionaire!
Everything is all good, but you got to do it in moderation....and stick to a budget of some sort....
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  #135  
Old 06-28-2006, 12:05 AM
jetstream23 jetstream23 is offline
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Location: Phoenix, AZ
 
Join Date: Mar 2004
Posts: 3,229
Mein Auto: 330i, Toyota Land Cruiser
Quote:
Originally Posted by Ventoux
If you are unable to see the merits of a 401k account as they are at this point in time i cant help you, but i can almost assure you the tax rate for myself in 20 years, will be less than it is now.

And another thing, not everyone lives in California. 700k here would buy you a 5000 sq foot trophy home in the best neighborhoods.

and like the other poster said, what is your retirement plan?
Exactly, my wife and I both max out our 401(k) contributions. It reduces your current income tax and let's your investments grow tax deferred for decades. You can withdraw the money in set amounts when you retire in order to minimize the tax burden. 401(k)'s are a no-brainer and everyone should be completely maxed out before even thinking about getting an automobile that is more than just basic transportation....again, just my opinion.
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