Adulthood comes with a ton of decisions that need to be made. Everything from that job you choose to where you live becomes your decision solely.
If you find yourself with this stable job and income, the next big step is investing in your future by purchasing either a home or a car.
But which one do you purchase first? The truth is both of these are pretty big investments and could potentially change your life in different ways. In the end, deciding whether to buy a house or a car is really down to your financial situation and needs.
In this article, we’ll take a look at the advantages of buying each of these and everything else we think you should know so that you can make the most informed decision on whether you purchase your house or your car first.
Which One Should You Buy First?
In order to figure out which one you should buy first, there are some things you have to be looking at. You should be able to decide if buying a house before the car is the right decision. Here are the factors you should consider:
- Markets -cars depreciate quite quickly while real estate, no matter what at the current moment, rises over time. That makes it a better long-term investment.
- Timeline -Are you looking to make the purchase relatively soon? If you’re looking to do something quickly, a car tends to be quicker than buying a house.
- Savings -houses take a lot of money to put down, so if your savings are not up to par, you may want to consider opting for the vehicle first.
- Credit -for both of these most likely need to secure a loan. That means to purchase, and you should look at your credit score.
For potential homeowners, you’re gonna want a credit score of at least 620, whereas, with a car, you could have a little bit lower credit score.
Why is Buying a Car First Better?
Considering the factors, we discussed one thing. In the end, though, both of these investments are things that could be on your To-Do list.
However, there is one significant reason choosing the car before going home is a better idea. It all depends on your credit and ability To make monthly mortgage payments.
By purchasing the car first, you’re going to create a payment history. Lenders that are looking to help you find a home often look at car loans because they are paid monthly. The more Assistant and the chance of you getting the loan for your home is.
Is Buying a House a Good Investment?
Ultimately, whether buying a house is a good investment is an individual decision. However, owning a home does have several advantages. In the long run, owning real estate, when done right, is a great long-term investment.
This investment will protect your capital gains from devaluing because of inflation. It is a tangible asset that becomes more valuable over time.
Along with this, you can also have more freedom to make renovations and design changes that can help increase that home’s value. So buying a house is good, and few are financially solvent and stable enough to make it.
Which One has More Expenses?
One of the considerations you may have on your list when it comes to this decision is the expenses in the long run. For example, which has more expenses- a car or a home? In the end, a home will have more expenses because of long-term ownership.
These expenses include maintenance and upkeep. With the vehicle, you will have maintenance and upkeep, of course, but the cost of those aspects is much lower when dealing with a vehicle than with a home.
Granted, the upkeep and maintenance of a car are continual and consistent factors, whereas maintenance and upkeep in a home can be periodic.
Even with that aspect being considered, the home will still be more expensive in the long run. So if expenses are a serious factor in your decision-making process, you may want to choose to go with a car first and then work your way to buying a home.
Should You Buy Both in the Same Year?
Buying both in the same year is a big financial investment. Each of these is a big-ticket purchase and significantly impacts your credit.
So the answer to whether buying both in the same year is a smart decision is really dependent on your solvency and stability when it comes to financial matters.
If you are stable and solvent, then buying both in the same year is perfectly acceptable. The key is making sure that you can afford to pay for both payments.
Some experts even say that purchasing a car, waiting a little bit of time, and then starting the process of getting a loan for a home is a good thing.
However, some experts suggest that this is a risky move if you are unsure of your financial stability. For this reason, in the end, buying a car and a home in the same year depends on your situation.
Final Thoughts on Buying a House Before a Car
Buying a house before a car is a decision that needs to be made by looking at some very specific factors.
Once you’ve taken into account the timeline, your savings, your credit, and the market itself, you can make an educated decision on whether that is the right move for you. We hope all the information we have given you has helped in that decision-making process.