Should I get the cheapest SR5 4x4 I can find?

Here in Toronto the housing market is insane. detached 1600sq ft house selling for over 1mil
Townhouses selling for 700+
500 sq ft condos selling for 500k

Its ridiculous and if you're not in the market yet you're not getting in. Or its going to crash soon and probably will.

 

Yeah that is a market I wouldn't be buying in if I didn't own something already. I hear about Toronto regularly when it comes to insane housing markets. It sounds a lot like San Francisco, Seattle, and Denver. It really comes down to are there that many jobs in the city that pay enough to support these prices. In those markets I'd say no. You basically have to be a double income household where both are doctors or something similar to afford a house reasonably close to the city.

 

Stopped reading at Volvo. I apologize.

 

yep, can't buy anything within an hour drive of the city for less than 500k basically.

The other day the girlfriend and I were watching house hunters and hearing people say we got them to take 6000 off made us laugh since homes sell way over asking here.

I know a few homes that sold almost 200k over asking. Hell my girlfriends neighbour had his house appraised at 1.1mil, listed at 750k, sold for 1.6mil within two days.

I'm in my mid 20s and no way I can buy anything. I'm lucky enough my parents let me stay at home still. I was on my own paying rent and they basically told me just come back home until my girlfriend and I get a place. She just finished school so not much of a job yet so anything we buy will basically be single income home. Besides they seem to love having a contractor living at home haha. Full kitchen reno just cost them material. No need to shovel snow in the winter cause I'm the first one up and first one home. No need to cut the grass.

Its crazy though even the rental market is upwards of $2k a month for a basement apartment. I'd gladly leave but almost all the work is in the city.
All those young and buying right now are living paycheque to paycheque and if they loose there job, they probably have about 3-4months before they are royally fucked.
Figure their mortgage payments are likely $2600+
throw in bills, car payments etc they don't have much left after all that to save.

I know plenty of people are buying that make less than I do but they don't seem to mind taking that risk. For me being in construction its constantly up and down. When lay offs roll in it can months before you're back to work. I'm not putting myself in that position until I have to. When my girlfriend and i get married we'll look at buying a place or something but until then really no need to leave. Might even end up just living with her mom since she could use help around the house too and we get along great. Plus have my cottage that I'm working to rebuild. Bought it dirt cheap cause it needs so much work but its all stuff I can do myself so really not that bad. Plus gives me plenty of hunting property
My cousins from NY and NJ were just up this weekend for my sisters wedding and they couldn't believe how bad the market was up here. They though it was bad in staten island and long island but its even worse here.

 

its fucked how that is lol.
After buying my taco my credit went up into the 800s as well.

 

I didn't vote in the poll because there was no "Fuck it, buying a house in this market is as terrible an idea as borrowing money for a vehicle when you already have one that's paid for but living in the truck is possible and cheaper than rent so do that" or "because fuck you, that's why" options.

 

I got my trd offroad for 33k before trade in. I didnt want prem and tech. I also got a manual. Best decision ever.

 

Yes and no. The sr and sr5 models no longer come in manual transmissions.

 

Wake up! That is the dream you were sold because when you owe large amounts of money you are a stable asset (slave) to a bank that takes your money and invests it so they can buy hookers and blow and $7000 credenzas and shit. The real american dream was badass mofos on horseback in a lawless west building their own dreams and doing what they wanted without some jackwad telling them what they should do. It's too late for us now... so buy a Taco and pretend it's a stagecoach. GTFO while you are still free.

 

If you want the TRD OR get the manual version. Otherwise just save and get the SR5 because unless you are a hardcore off-roader, crawl control/locker are overrated gimmicks. IMO

 

So I went through a similar thought process last year when purchasing my truck. MSRP on a SR5 DOUBLE CAB 4X4 V6 AUTO is $33220 while the MSRP on a TRD OFF ROAD DOUBLE CAB 4X4 V6 AUTO is $35160. So basically the price difference between the two comparable setups is a little less than $2000. For that $2000 you get all the off road goodies like a rear locker, crawl control, MTS, upgraded shocks, upgraded tires, etc. You mentioned you will be off roading a lot so obviously I'd recommend the TRD OR for a bit more money, which is also what I ended up doing. If you end up using financing for 60 months it would come out to an extra $32 a month for the TRD OR compared to the SR5. Basically if you can afford the SR5 you can afford the TRD OR. If that difference of $32 a month would break the bank, probable rethink purchasing a truck right now.

 

Eh you are either a slave to the bank or a slave to your landlord. Take your pick. The difference is bank slavery ends if you do it right. Unless you run to the wilderness and live in a mud hut that is.

 

I'm 28, bought my first condo almost 3 years ago. 265k in San Diego for 2br 2ba 900sq ft (yes san diego is stupid expensive) , had a 12 months left on car payments on my old car. Would not get approved for loan till car payments were gone so I paid it off. Anyways 3 years later, I bought my tacoma 4x4 TRD OR, was approved with very low interest, i did trade it my car that was worth 24k (Taco cost 41k with all fees and registration and crap). My condo is now worth 350-365k. So I would say home is worth it.. sorta because its a sellers market and everything is up. 2 takeways ... 1) Home costs for next couple years is going to be at the highest so your buying "high" so you might as well buy your taco now. 2) Depending on your finances, you will probably have to pay off your taco if you have payments before you are able to purchase a home because of your debt to income ratio. GOOD LUCK!!

 

This.

 

If you need a truck get a truck. Can't go wrong with a Tacoma. It will hold it's value far better than anything else.

You'll need a truck if you get a house anyways, unless you plan to pay someone to work on it, and you'll need a 4 door if you ever have kids.

You loose money when you buy and sell constantly.

 

Whatever you buy, buy something flexible that you will be happy with for 5-10 years that holds value well. (Maybe a Tacoma!)

But I'd suggest you look at even an SR 4x4.

I was looking at SR5's and others, but I found an SR end of year, and I feel I got a really good price on it because dealer needed it gone, yet it had the options I needed like dual cab, 4x4 and tow package.
Now as I can, I make a few changes here and there but it's $10-$13k less than something else.

 

I'm in a similar position to you. I could probably swing a house payment, I'm fairly handy. (not a contractor like you) But if push came to shove and I needed to do serious work on a house I'd be hard strapped to make the mortgage payment and handle the cost of materials for a fix. I really don't want to take the risk and spread myself too thin.

 

We're all feeling that pinch. I'm in my late 20's and trying to do the math.

 

Sell the car yourself, don't trade it in. Buy a used truck, either a 2016 3rd gen. or a nice used 2nd gen., arrange the financing first so you're not under pressure and can get the best deal. Btw; of course keep saving but don't buy a house now, if the prices are as high wherever you are as they are where I am. A buddy of mine recently retired and sold a 1 bedroom, 1 bath condo, in an older not too nice building, on a busy street, for $675k. I'm happy for my buddy but prices are insane. I sold my place earlier this year and made some money, wait for the downturn, it might be a year or two but we're overdue for a downturn.

 

Save for the house, it's still the number one way to build long term wealth.