A purchase that I have made recently that I feel was a profitable one both currently and in the long term was our first home. There are many reasons both financially and non that I feel this purchase will benefit both my wife and I. Prior to moving into the house, my wife and I were living in an apartment and were doing so for roughly 3 years and in the span of this time we obviously were paying rent, which ranged from $550 a month to $800 a month. Financially speaking, living in an apartment was an expense, and not an asset like having a mortgage is. Each month we were literally throwing our money away because we had nothing to show for our living condition, in terms of taxes and equity. Over the course of those 3 years, we left with no ownership and could not use the money we spent on our could be “investment” in our best interest. Now that we own our home, each month that money reduces the total amount that is owed on the house, including the interest paid that can be deducted on our taxes reducing taxable income at the end of the year. On top of that, we own this asset where we have the option of selling it or retaining the house as a rental property that could yield an extra income stream when the time comes for us to move in the near future.
The net present value would be difficult to calculate because in the future when we plan to use this house as an investment property, the market value at that time is unknown currently but more than likely could rent the house for roughly $1200-$1300 a month. With a mortgage payment of $915, including escrow, would have a profit margin of $300-$400 per month, assuming we manage the property on our own and not use a property management company, which would cost 10% of rent, leaving our profit margin to be roughly $280. Any profit that we bring in would be put right back into paying down the principle to expedite paying the house off quicker, thus being able to keep more of the profits. Being that my wife and I want to make a business out of owning many rental properties, all profits at that point would be used to purchase another home and so on and so forth. Needless to say, all of this could not happen with paying rent each month for an apartment that would show no ownership or any possibility for an investment opportunity. The net present value of purchasing this home and any other home in the future is difficult to calculate in the present but more so a forecasted and analyzed assessment of the potential that it may bring. Along with the other parts to our financial plan that tie into this one of continuously building our career skills in our day jobs to live off of a salary and not need to touch any income brought in by investment properties. I compare my example to that of purchasing solar panels. Rather than viewing the purchase as a short term investment, the benefits really start to show itself when the timeline is extended.
I used to have a really good high paying job. I was 22 years old and I was making 70K a year. Now that may not seem like much now but at 22 in 2009 that was quite substantial. Well, I bought a Mercedes Benz C300 brand new off the lot. no payments. I was super impressed with the driving performance and the low profile of the tires which made curb turning impeccable. Needless to say the economy took a plunge, I was laid off, and like most 22 years olds, I didn’t have one red penny saved. I had to sell the car in order to pay other bills and help my family keep the house we all lived in.
As time went own I never quite made it back to that status. I grew up and more important things became priorities. Now I no longer have those obligations and I’ve been thinking about visiting the dealership to make a purchase on 2017 Mercedes Benz CLA250. I’ve been visiting (biweekly) the car for over a year now. I am satisfied with everything about the car including its sleek exterior, premium leather seats, and supercharged engine.
The issue I’m having with the car is the price 32,700 MSRP. That is for the base line model )there is really nothing basic about me), it would be an additional 7000.00 in add-ons which is now a 40,000 car. The fiance charges would be at least 10,000 and to add gap insurance (required), I’m looking at paying 50,00 for this car. This time I cannot pay cash as I did in 2009 so I would definitely need financing.
Keep in mind that I already have a car. Its a 2013 Hyundai Elantra. Its paid off and I have not had to replace anything on the car besides brakes and tires due to normal wear and tear. The insurance is 101.00 per month and to add the CLA250 my insurance would jump to 230 because of the type of car and the cost to restore it if an accident would occur.
This is not a good investment. It would add more stress to my life and it could become a financial burden. The type of revenue I am currently making would allow for such a purchase but when I consider the cost, it’s not a viable purchase. However, seeing a how I just visited the car this morning, I am trying to figure out how to maximize the cash inflow to offset the cash outflow.
I’m curious to hear your thoughts and views on the subject. What do you think is the next best move?
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.