Doug Demuro says now is the time to buy an e46 M3, before values sky rocket

[dr_011]

I certainly think it’s a good time to sell— just a bad time to buy in.

I just sold our house, for 43% more than we paid for it 5 years ago (having put no money into upgrades), specifically to get out before everything goes to shit. We're building a house, but it won't be ready for a ~year. In the interim, back to apartment life to avoid what I think is a likely housing market crash coming in short order.

only 43% in 5 years?? dang that sucks. i'm up 300% in less than 4 years. like i've always said, west coast = best coast. there is no "bubble" here, maybe on the Least coast, but not here. good luck hustling for equity.

[dr_011]

That, coupled with (potentially) increasing rates could definitely cool the market. But right now it's just nuts watching the bidding wars in our neighborhood.

yeah, "cooling" maybe, but a bubble/crash, no. not gonna happen on the Best coast.

[sliqwille]

This is in no way financial advice but if I’m up 300% on any investment, I would have a bulletproof exit strategy and/ or hedge the crap out of it. Things can only keep going up for so long (short to midterm) before a price correction is inevitable.

[repoman89]

only 43% in 5 years?? dang that sucks. i'm up 300% in less than 4 years. like i've always said, west coast = best coast. there is no "bubble" here, maybe on the Least coast, but not here. good luck hustling for equity.

Lol this is so lame, what a child

[repoman89]

Cars and housing are both pretty terrible investments relative to other vehicles like the stock market, even if they do appreciate. My E46 is worth probably nearly twice what I paid seven years ago … but even ignoring insurance and maintenance I would have made way more elsewhere. Luckily that’s not why I bought it. Similarly my house is worth a good bit more than I paid even two years ago, but it doesn’t really matter … I live here and if I sold I’d just have to buy another. Plus insurance and maintenance on that too.

It does make me question driving and tracking it at 44k miles, which as I’ve said in other threads annoys me. I usually just drive my Miata even though I actually paid more for that (new) and it’s actually a fine substitute and maybe even more fun on public roads, except for that carbon airbox roar.

My E39 M5 probably has to go at some point, I don’t really have a great use for that and it’s rapidly getting too valuable to actually use. Especially since it’s only okay compared to the Miata and E46, and we have a CX5 if we really need a big car. The interior in the M5 with full heritage leather is glorious though, probably half the reason I still have it.

[Tbonem3]

This is in no way financial advice but if I’m up 300% on any investment, I would have a bulletproof exit strategy and/ or hedge the crap out of it. Things can only keep going up for so long (short to midterm) before a price correction is inevitable.

I don't think they understand the competition out here. We're not talking about people over extending themselves to get in. There are millennials/gen z with high incomes out here.

Here's a good example. You'd never really reduce the amount of rooms a house has, a big no-no. Yet, flippers are starting to do so out here and make larger, open living spaces with modern features to attract the high earning young people who don't have kids or only have 1 kid.

[Tbonem3]

Cars and housing are both pretty terrible investments

Woah woah, please clarify if you're speaking of rental/commercial properties or a home. Homes are not investments (financially). Rentals/commercial are FANTASTIC investments.

[cobra]

This is in no way financial advice but if I’m up 300% on any investment, I would have a bulletproof exit strategy and/ or hedge the crap out of it. Things can only keep going up for so long (short to midterm) before a price correction is inevitable.

Nuh uh.. stocks only go up!!! Hehe.

Seems I sorta derailed this thread with the investment comment haha. Very interesting perspectives though.

[repoman89]

Woah woah, please clarify if you're speaking of rental/commercial properties or a home. Homes are not investments (financially). Rentals/commercial are FANTASTIC investments.

I’m referring to a regular primary home which way too many people see as an investment. I have no knowledge of rental/commercial except that I know it’s way too much work for me personally and I can probably do better keeping my regular job and index funds / stock options

[Nick_P]

Cars and housing are both pretty terrible investments relative to other vehicles like the stock market, even if they do appreciate. My E46 is worth probably nearly twice what I paid seven years ago … but even ignoring insurance and maintenance I would have made way more elsewhere. Luckily that’s not why I bought it. Similarly my house is worth a good bit more than I paid even two years ago, but it doesn’t really matter … I live here and if I sold I’d just have to buy another. Plus insurance and maintenance on that too.

^This! I work in finance…manage money for a living and 100% agree with the above statement.

Just enjoy your cars. If you are looking for an “investment “ go open a brokerage account or find a Financial Advisor and you’ll make a lot more money that way.

[stephen]

I really hate how much these cars have gone up in value. I bought mine because I like to drive it and not to keep in storage waiting for it to appreciate.

These rising values only make me want to take the car out on the streets less, cause I know it will be really hard to replace if someone messes it up.

An agreed value insurance policy would be ideal, but no one wants to offer me one of those policies without a daily driver. For some reason, no insurance company understands that I don't need this car to live my life and I truly only drive it for pleasure.

I have agreed upon value insurance through State Farm and I don’t recall them ever mentioning anything to me about mileage or needing a second car. All I had to do was give them a copy of an appraisal.

[dr_011]

This is in no way financial advice but if I’m up 300% on any investment, I would have a bulletproof exit strategy and/ or hedge the crap out of it. Things can only keep going up for so long (short to midterm) before a price correction is inevitable.

ok, even if it drops
to 200% I'm still
good

[dr_011]

Lol this is so lame, what a child

Sorry, just expressing a fact. Good luck to you and yours.

[sliqwille]

I don't think they understand the competition out here. We're not talking about people over extending themselves to get in. There are millennials/gen z with high incomes out here.

Here's a good example. You'd never really reduce the amount of rooms a house has, a big no-no. Yet, flippers are starting to do so out here and make larger, open living spaces with modern features to attract the high earning young people who don't have kids or only have 1 kid.

I work with a lot of LA/ SoCal residents in my industry. It blows my mind what real estate is doing there. Barring COVID 2.0 and the Fed keeping rates down (taking short term inflation out of the equation) the trend does seem to keep climbing. I came through the wrong side of 08/09 so now I tend to err on the conservative side of risk v/ reward.

If Atlanta even follows an exponential behind, sooooo gonna have my dream M collection.

[Obioban]

only 43% in 5 years?? dang that sucks. i'm up 300% in less than 4 years. like i've always said, west coast = best coast. there is no "bubble" here, maybe on the Least coast, but not here. good luck hustling for equity.

300% up in 4 years and you think there’s no bubble?

…

I think you may have a rude awakening in your future.