Holding debt while owning a P-car
 

I’m constantly torn up over owning my 911 while having a mortgage. We don’t have any CC debt nor any other type of debt.

I raise this issue after having read another thread where people are shedding their CC debt after some time, and they also own these P-cars. As I said, we have no CC debt, we own our three cars and only owe on the Mortgage. I have a good job that earns me “more than most but less than many”. Our credit rating is solid. We took out a 25 year mortgage 4 ½ years ago at a below prime interest rate. We’re making accelerated payments plus some; we have approx 13 years left at this pace. We have no kids. My wife works part time. We’re in our mid-late 40s.

If I sold my 911 and put that $xx on my mortgage I would reduce my principal by $xx along with the accrued interest. So my 911 is actually costing me interest I would not otherwise have to pay on that $xx amount. THAT is what bugs me. Even though the Pcar is paid for, I feel it’s costing me on my mortgage interest.

So I’m torn between being financially practical and enjoying something in life. How do you guys reconcile the two?

Why are you trying to quantify a hobby?

And why are you trying to pay-off a cheap mortgage so soon?

You sound like a bundle of nerves.

relax a bit,
your MUCH better of than most folks,
you have a plan,
enjoy something..

Rika

I'm also debt-free outside of my small mortgage. In the long haul, real estate is still an appreciating asset. Sure, we've currently hit a blip where things are a bit backwards, but I could still sell my house today for far more than I paid.

I don't mind making payments on my house, and don't feel bad one bit about a paid-for Porsche sitting in the garage. Especially since it's a long-hooded 911, also going up in value.

A Porsche is going to hold its value better than a Toyota. You're wise to buy a house, and wise to drive a Porsche.

No reason to beat yourself up over little stuff.

You sound like you have a lot of disposable income. Keep making extra payments on the mortgage and have fun with the 911.

Interest + Maintenance + Depreciation + Gas = The price of the fun you are having with the Porsche. Interest is probably the same as the gas bill when you think about it.

If you had a gambling addiction, that would be something that should bug you.

Owning a P-car along with all the other elements of your financial picture is not being indulgent at all, the way I see it. Enjoy it.

Our financial picture isn't nearly as good as yours, and I don't have a P-car... nor will there be money any time soon for any kind of "fun car."

Reconcile that. :D

Dude. Chill. What good is having money if you don't spend any? What good is saving money to spend later if you have to wait until most of your life is over before you feel comfortable spending some of it?

The key is to have ballance. Make enough money to live on, save wisely and spend enough to enjoy yourself (and reward yourself for your hard work) without being imprudent.

Worst case if something comes up, you just let the hobby sit for a while, focus on your obligations and then pick it up again when money is more available.

And believe me, there will be plenty of opportunity to do projects that just require time or labor rather than $$$ if you believe in doing things yourself. You'll have plenty to do even if you can't afford part "X" that week. Ask how I know.

I never saw it as an issue. I suppose if was your only car or something it would be though.

Don't know how things work in BC but I have been advised NOT to pay off my mortgage because of the tax write-off.

Honestly If I hit the lotto (if I played lotto) I wouldn't pay off my mortgage.

compared to you, i am a disaster. i got so depressed reading this post and the "no CC debt" post that i dont feel like even visiting this site for a while. i spend more on cigarettes per month than i do on all 3 of my vehicle pmts.

one thing ive learned, seeing friends and family and clients die way to young, is to do at least some of things you love, TODAY. If that means not paying your mortgage off early, so what. there are no gaurantees that youll be here tomorrow

We can't write off the mortgage interest in Canada.

What MRM said! While you may have read my responses on the CC thread about being "debt free", you also only go around once in life and "ya can't take it with ya when you go". Balance is the key and it sounds like you're already there. Although "debt free" now, I actually used a HELOC to purchase my 911 (mortgage was already paid off at the time) some years back as I didn't want to liquidate other assets at the time. Enjoy your 911 and sleep well at night :)

So you make a bundle and have no kids. Are you trying to leave millions to charity when you die? Life is too short. Try and have a good time without feeling guilty about it. ;)

life is not ALL about paying the least amount of interest.

i might be a slave to 'the man' with my mortgage, car payment, etc. but damn if i'm not having a hell of a time!

within reason of course;)

hike up your skirt man! you may as well cut your own hair, and make your own clothing.

the greatest irony is when we are young, we have all the energy in the world, but zero money. grow old, lose energy, have some aquired wealth. effen lame. i wish we could flip one of those things...but we cant. so all we have is balance. the goal is balance.

Ain't that the truth! I've not always been "debt free" and have sure had a good time on the journey of life. My take has always been to take care of the "important stuff" first, and then blow the hell out of what's left in my checking account on a regular basis, but never beyond that (i.e. CCs) :).

Damn Henri, don't beat yourself up. You're in a damn good spot in life, your 21 year old P-car isn't exactly an indulgence. If you had a bunch of CC debt or had a loan on the car, my answer might be different, but you're in a great spot to justify a toy. I don't have a Porsche because I don't have the spare cash to buy one outright, and have student loans to pay off. I can't justify a toy right now, but you can. Be proud of where you're at in life, and enjoy that 911!

I feel like I’m a little behind the 8 ball. Only in the last seven years have I started making decent money. When I was young I was told to find work that I enjoy and the money will come, rather than chase a job for money. Well it was good advice, since I haven’t been a high money earner most my career but I have enjoyed my work. I’m 47 now. I’ve always been conservative with the little money I made. Bought a little house when I could which allowed me to build some equity and then move to the west coast and buy high rise condo.

I married my wife nine years ago. She was making more $ than me at the time but had spent it travelling, except she too bought a place of her own. We both owned our high rise condos (not clear titles), which is what we sold to buy the house. The stress in her job took too great a toll on her health, so after some encouragement from me she left her job and now works part time. So, we don’t have much put aside for retirement but “while the sun is shining we’re making hay” and are hitting the mortgage. Our house will likely be our retirement nest egg, but I don’t think that’s good enough, which is why I question owning a Pcar while I have a mtge.

Personally, I would pay the regular payment on the mortgage and put the extra into a good ROTH IRA. Having a paid off house and no retirement isn't a very good scenerio.

Stop for a second and think about the money we're discussing. What's your Carrera worth, $20k? Would that money REALLY make a very big difference in your mortgage? I'll venture a guess and say no. In the grand scheme of things, it's really not all that much money.

When asked wether one should put money into an RRSP or on the mortgage, consultants will say we should do both if we can. The return on each is about the same. Personally, I think realestate is a better bet than RRSPs. Consultants have said that RRSPs double approximately every seven years given compounding of the interest. I haven't seen it. But my property has nearly doubled in less time. Keep in mind I'm in Canada so, as mentioned earlier, we can't write off our mortgage interest.

If you really have a moral dilemma with it, then you need to :

1. Sell the Porsche.

2. Pay off your Mortgage, using some money from the sale of the Porsche.

3. With the spare cash you have lying around from paying off your mortgage, you can

4. Buy a Porsche.


Sounds like you're doing just fine, so enjoy the car.

I would not own a Porsche if I had a mortgage. Not in Canada.

Got any money in your RSP?

Who in the hell pays a mortgage off? That was reserved for the last generation. Isn't the interest deductible in the northland?

P-cars torture the souls of those who cannot stop dumping small fortunes into repair, maintenance and the like. They are to the multitiude the most impractical cars to own, BUT saying that the pride and pleasure in ownership is unparalled on the planet!

Stop biting your fingernails over the stresses of paying off a mortgage and live alittle..............................enjoy the Porsche, charge plenty of goodies on your zero balance card and join the rest of the world.


Bob
73.5T:cool:

How old are you? Maybe I'm the generation you're referring too :). I paid off my primary mortgage years ago, and have purchased two other investment properties using HELOC (for part of the purchases - also paid off) along the way. If you have no problem being in debt, that's cool until something unexpected (job loss, etc.) happens. Do you EVER intend to retire and enjoy the fruits of your labor? Debt free and simply wouldn't have it any other way at this stage in my life as long as I can help it...

Henri, why do anything in life? Are you working your life away so that when you die, people will say, "Well, he was quite a bore, but at least was fiscally responsible"?

If you don't enjoy the car anymore, fine, sell it. But it does not sound like that is the case.

Keep the car.

BTW, you did not state how old you are, but it sounds like you are in a reasonable financial position.

If you sold yourself out, you could put that on the mortgage too... ;)

As reiterated several times already - find a happy medium and enjoy life.

There are plenty of people that have $20-30K new cars and aren't even close to your level of financial stability. Most new cars cost more than an 80s 911.

If I got rich one day, I'd take a lot of pleasure in giving most of it away to people that could use it better. Until then, I just have to take comfort and enjoy every day I get. I'm only 21 but my Dad died when he was only a year older than you (48), and for whatever reason, didn't get a fair shake at life, in my opinion. Drive that 911 every damn day, Henri. We aren't on this planet for very long.

On their deathbed no one ever said "I shouldn't have bought that Porsche."

There are ways to make the interest on your mortgage deductable in Canada.

It seems from your description of your balance sheet you and wifey are doing fine. In fact, you should up your commitment and also get a track car for more fun! Maybe a 944 just to mix up the parts bin, go really crazy. Don't forget to get a Suburban to pull that new trailer you will also need. Oh, and you will need a shop to keep it all out of the cold weather. There, now your finances will really be cooked and you will be just like the rest of us! One more thing-put a woodstove out in the shop cause that's where you will be sleeping! ;)

Like others here have alluded to, I don't work today so I can live better in the future. I save for my retirement goals plus some cash for emgencies and spend the rest. My father lived to 42 and my mother will probably live to over 80, so I set my retirement to live to 80 but live like every day could be my last.

.............."Who in the hell pays off a mortgage"?

Well, its called Divorce, which was not so prevalent in my father generation. The probability of loosing your house to your ex-spouse, especially when your children are entrenched in an excellent school district, is a no-brainer! So, you pick up the pieces and start again. Another mortgage.

If you were to query then number of divorced men in the states on the disposition of their homes during a divorce the great majority will have given them up to the ex.

But, this thread is not about divorce, its about financial security and Porsche ownership. Luckily for me I got to keep my 911!! Unfortunately its too small to live in!!!!!


Bob

I've somehow managed to avoid divorce, mortgages AND kids, so I guess I'm doing okay. I certainly have a way lower stress level than many of my peers. :)

Of course P-car ownership keeps me from becoming wealthy I suppose... But I'm having fun at least. That's what I keep telling myself anyway.

come on... your P car isn't worth that much to really make such a difference. Just enjoy life while you can and keep your pee pee clean.

Worth? No. You're right. But COST?!?! That's another issue entirely.

You mean you're not supposed to put 1/4 to 1/3 the book value of a car into it every year?!?! Who knew?!?!

Me. And typically, no it's not.

Live a little!
I use to spend my dispossible income in traveling. When I had kids, I reduced the travel and got a Porsche.

Money IS NOT everything....... Actually my Pcar is holding its value better than my IRAs.. ;-(

If anything, I should go out and buy a Ferrari California... ;-))

Ah yes, I've been "lucky". The "Big D" has derailed many prudent folks in regard to finances :(. I've too have been fortunate in that regard but I do know how relationships can run aground (re Ian's thread regarding "room monkeys"), but when my ex g/f "turned" on me after 8+ years several months back, at least I only lost her, and my financial security remained intact. We had talked a bit about marriage over the years, but THANKFULLY that wasn't part of the equation. So, in many cases, the key to finacial success = NO "D", and isn't that one a total crap shoot ? :)

I agree that avoiding divorce is key, but I dont know about the crap shoot part though. IMO if you are making financial decisions and keeping in mind the possibility of divorce I would suspect it might be a self fulfilling prophecy.

Keep the car, put extra money on the mortgage by paying weekly and maybe increasing the payments a little. Put money in an RRSPs straight off your paycheck and take any tax refund at the end of the year and put it on the mortgage as well.

Again, not to mull over divorce, I have a few friends who were married over 20-years and wound up divorcing and facing financial ruin! Its the courts down here that favor the ex-wife and part of that favor is allowing the ex to keep the house, especially if children still reside. So, indeed mortagages to get paid off; however, their is not much in the way of bargaining for equity in the house with the ex. and spending a small fortune over arbitration fees for deciding who gets the leather sofa versus Aunt Mildred's silver tea set, does not help the bottom line either!

The key fellas is find a way to.................STAY MARRIED!!!!!!!!!!!

Bob
73.5T:cool: