What would you think about trading in your Tacoma for a down payment on a house?

Some say don’t seek financial advice on internet truck forums.

Do your research OP.

 

Not sure the younger folks here will get your reference.
But I do...well played sir.

 

ALL RIGHT, MISTER SISTER!!!!

Haha..the good old days.

To your original query though..I definitely don't love cleaning gutters, shoveling snow, and damn sure didn't love building walls and other construction stuff. Though I do love having a garage to store my stuff, a driveway to work on my trucks, a pool for the summer..so it's worth it to me to have a house versus condo or to rent.

 

I can only advise on the Canadian market, but buying a house right now would be completely foolish. Prime rate (+ interest) have shot up a boatload, house prices are up an average of 150% or much, much more. My truck is a 2021 TRD OR and perfect condition private sale estimate could be as high as 55,000 CAD (take that with a grain of salt, I sincerely doubt I'd actually get that much but that's a private sale estimate where I live right now with one of the most trusted 'appraisal' websites in Canada).

That barely touches the down payment on a home on acreage in an area where homes were once considered some of the most affordable compared to their accessible amenities in the province, and Canada to boot, while maintaining an upper hand on the explosive interest rates.

Even if it did, I'm still paying 5% interest on a home that three years ago would have cost $120,000-160,000 with its land at 2% interest, and now costs $350,000+ for that same shit-hole project. Mind you I'm not afraid of a project but I'm not sinking 300+ grand on a house that needs 100,000 or more in work after purchase. Right now "work" means nothing to buyers, everyone is desperate.

Instead, I'll work on saving, investing, paying off the remainder of my truck, and enjoying life where I travel for work, which I use my truck for... and write off a (small) portion of my payments, fuel, and insurance for my business.

Edit: and haul shit for cash, help family with renos etc lol. Might even inherit the house (not death related so don't worry TWers, more of a passing of burden... a house needing work is still a house).

 

I should mention that OP, it depends if you want or need to relocate etc. We bought in 2004 when prices were high (and still going); not ideal, but we were being evicted (my wife lived there long before I came along and there was a list of issues with the landlords). If we had not bought, our savings would have been depleted in having to rent another place and therefore we'd be further behind.

 

I almost thought you were being evicted from your purchased home...lol!

We bought our home in 2006...as I previously stated, I was Active Duty Air Force and getting Allocation to supplement my family's living arrangements.

The importance of INCOME cannot be overstated. Plus, you won't get a Mortgage Loan without proof.

That plus, lenders may be looking for longevity in income.

It blows my mind what happened in 2008 when banks were "willy-nilly" giving loans to people who couldn't pay them back.

 

My wife's grandson found out the hard way you don't hesitate in the Air Force. While in SF tech school down in Texas, he apparently didn't realize how important it was to get that dream sheet in quickly. By the time he got it in the only thing left for him was Minot AFB in North Dakota, where they of course sent him in August. Plenty of time to spend the entire winter there Bet he will never hesitate again lol.

 

He’ll learn lots of things during his first term!

My son-in-law joined almost 6 years ago…he only did one term but because he made SSgt, it meant he had to give them another year!

He was stationed in Germany at the time so it wasn’t as bad as staying at “Why Not Minot”.

 

The only consolation is they sent him to Guernsey once and they are sending him again, and he loved the training there. Got to play with all kinds of new toys lol! He's A1C so has a long way to go.

 

Used prices right now are BONKERS and are due for a crash. You can probably buy the same truck back next year for less. I bought new this month because late model used were selling for more off the lot. It's good timing to cash out if that's what you want. Then wait for house prices to crash

 

Oops, nope this was the events prior to us buying this one.

And yes, I remember the 2000s. I don't think they even did a walkthrough on my first mortgage (which is probably good for me) and my refi in 2010 they were picky picky

Hmmm, good though perhaps @TacomaWillow ..cash out the truck and stay put until house prices drop.

 

I follow some used car market youtube channels and they unanimously say there is a bubble of repos on the horizon from folks who bought up with covid money (or as therapy for covid depression?). The guy I bought from new also said used car prices are being driven up by people who can't or won't wait around for the new car market process.

 

Both of which don't shock me either. Not a need like a home or vehicle of course but the same thing is starting to level off in collector markets, I'm a bike person and the prices shot through the roof 2 years ago. In that case it was also one of the few things people could still do regardless of what was happening as well.

 

Just here to say what's already been said. Sell the Tacoma while the pricing is premium and locate a nice beater you can live with for the time being. Hell throw a small hitch and receiver on there and you can tow around a small utility trailer which can haul similar as a shortbed.

Trying to play the market game when you want to is not how it generally aligns. if you have your cards ready and are patient, especially now since we all know the housing market is going to decline then you can be one of the few people actually putting in an offer at or below asking price. And if things change, you can pick up a new Tacoma for a discount and be back where you started with more DP in your pocket.

 

Limited information on your priorities and future plans so a generalized response.

Houses - In short supply, expensive and the NIMBYs (Not in my back yard) crew wants to keep new housing scarce and, therefore, expensive. In the long run builds wealth.

Cars - In short supply, also expensive. However, the auto companies will solve the supply chain constraints and build as many as they can. No NIMBYs holding them back. In the long run does not build wealth (short term excepted).

Go for the house (cheapest house in a nice area is a good rule for starting), buy another Tacoma in the future.

 

You can live in your truck, but you can't drive that house.