I was wondering how much my annual salary would have to be to buy a 2016 Lamborghini Huracan LP580-2 in the future. For used I'm thinking 190k since they are predicted to start at under 200k but I want a nice one. Any feedback would be greatly appreciated.:wave:
Lamboboy123
Depends how many miles you drive, but there should none the first year. My second year was a total of $800. New car should have basically no costs beyond an oil change. Ofcourse you will have insurance but that's about it.
Greetings and salutations and welcome to Lamborghini Talk, Lamboboy123! 
I remember someone here saying "half your salary for a car, double your salary for a house", and I think that is a pretty good maxim for a rough guide. If you want a $200k car, you should be earning $400k/yr. That isn't hard and fast as you can save up and put more money down and finance less, but in general when you take all other life expenses, you shouldn't be paying more than 10%-15% of your income on your car (10-11 is the national average).
BTW, if you finance a $200k car over 5 years, your monthly payment would be approx. 12% of your monthly income if your yearly income is $400k.
I remember someone here saying "half your salary for a car, double your salary for a house", and I think that is a pretty good maxim for a rough guide. If you want a $200k car, you should be earning $400k/yr. That isn't hard and fast as you can save up and put more money down and finance less, but in general when you take all other life expenses, you shouldn't be paying more than 10%-15% of your income on your car (10-11 is the national average).
BTW, if you finance a $200k car over 5 years, your monthly payment would be approx. 12% of your monthly income if your yearly income is $400k.
2X earnings for a house? Wow, that seems low to me, in Portland the average household income is 50K and the median house is around 300K, now granted a lot of those people rent but I doubt that the median home owner makes 150K per year.
For me I live in a house that is less than a years worth of income but my cars are worth about half of my house... but like most on here I am a car nut, im just fortunate that when I spend 10% of my income on cars they are damn awesome cars.
For me I live in a house that is less than a years worth of income but my cars are worth about half of my house... but like most on here I am a car nut, im just fortunate that when I spend 10% of my income on cars they are damn awesome cars.
That "Rule of thumb" for a house is complete and utter trash unless you live in a region where cost of living is exceptionally low, which means you're less likely to earn enough to support a car of that expense.
My wife and I make a combined income of around ~$380K a year and don't bat an eye at living in a home worth over $1MM but would never spend $200K on a car....
My wife and I make a combined income of around ~$380K a year and don't bat an eye at living in a home worth over $1MM but would never spend $200K on a car....
heh...average detach house in Toronto was 1.2M last month... I dont think average household salary was 600k for those buying those houses. I would estimate closer to 250k house hold salary with a 300k down-payment.
As per the car I say it should be no more than 50% of your disposable income after all expenses.
As per the car I say it should be no more than 50% of your disposable income after all expenses.
I would like to throw in "It is not what you make, but what you save."
If you are patient and save for several years, your buying power will go up dramatically.
It is spending and borrowing that kills so many people. If you can't save, you will need to make a fortune. If you are a good at saving and make smart investments, you will need to make far less.
Here is a good example. I used an investment calculator to figure out if you put away $1,000 a month for 10 years making 8% return, you would have about $185,000 at the end of the period. Continue that plan for an extra 2 years and you would have $240,000. At 15 years it is $346,000. You can go to any investment calculator on the web and switch the numbers around. It will give you an idea of what you would need to save in order to get there.
If you are patient and save for several years, your buying power will go up dramatically.
It is spending and borrowing that kills so many people. If you can't save, you will need to make a fortune. If you are a good at saving and make smart investments, you will need to make far less.
Here is a good example. I used an investment calculator to figure out if you put away $1,000 a month for 10 years making 8% return, you would have about $185,000 at the end of the period. Continue that plan for an extra 2 years and you would have $240,000. At 15 years it is $346,000. You can go to any investment calculator on the web and switch the numbers around. It will give you an idea of what you would need to save in order to get there.
I totally agree. I primarily invest in real estate and don't blow a lot of money on toys. (except my Jalpa) .I do waste a lot on travel but realized many years ago that every time I went on vacation, I came back and made more money. I see many people spending everything they make trying to look successful.My home is modest for what we can afford. I could buy a much more expensive Lambo but choose not to. It is nice being able to buy anything you want whenever you want it. Making frugal decisions and building net worth will make you much more successful in the long run. It is not a question of what your salary has to be but rather how much can you spend comfortably on an investment that will lose value . An investment that loses value is an expense. Why not save enough to invest in something that the return on investment alone will pay for the lambo.In real estate, cash is king. Most great deals come and go quickly. If you have cash and can put large amounts (30% or greater down) it is pretty easy tyo get most deals done. For example invest 300K borrow 700K make 1,000,000 and pay cash for the car. So few people have cash these days that larger deals often are plentiful AND profitable. Most development deals we do make 100% profit .You could also buy a business, build it up and sell it for 5 or ten times what you paid for it. Good luck, Lee
Granted I'm no expert either but I was talking about the yield for any one specific stock. Some of the highest I can find that are quality stocks are Center point which is 4.75% and AT&T which is 4.95% yield. My investment strategy does not require a lot of knowledge of stock terms and complicated variables, just common sense and picking safe stock that yield high OR stocks that are safe but have potential to grow or be bought out and thus jumping in $ per share. Finding a single stock that yields 8% I have yet to find. And no one has been able to tell me a SINGLE stock that has 8% yield yet. Just wanted to clarify what I meant by 8%, that transcanada stock mentioned yields about 4% now.
if there was a high yielding dividend low risk safe stock, we would already be investing in it along with everyone else.
There are some 8% dividend stocks but they are of the high risk sort.
real estate, these days, requires capital to start. gone are the days of low leveraged loans. Its going to take money to make money.
Best to stick with vintage cars to yield a sizable return.
There are some 8% dividend stocks but they are of the high risk sort.
real estate, these days, requires capital to start. gone are the days of low leveraged loans. Its going to take money to make money.
Best to stick with vintage cars to yield a sizable return.
So.... let me start by saying I am no expert once again. Here is a little bit of investing advice. Please take it with a grain of salt, as you should any advice of this type.
I think everyone has started talking about some high risk stuff. You do not get crazy returns without some serious risk. Investing 101.
What I am talking about is a basic portfolio. A mix of stuff that spreads your risk around. I like mutual funds. A mutual fund is a balanced portfolio of investments, like stocks, that is managed by a group of investors. You buy a share of a balanced portfolio. These tend to grow in overall value of around 6% to 7% a year. Some of the good ones I just looked up are doing around 10% or better in the last 5 years. This is basic investing and pretty low risk. You can adjust your portfolio to assume more or less risk in a very controlled way.
I bought stocks in the past, as did a bunch of good friends. We all had the same experience. We made serious money on some and lost our shirts on others. At the end of the day, it balance out to a moderate return. To make that big fast money, you have to take some serious gambles. Those gambles can destroy your finances if you make a mistake. I made a fortune and then lost it all in the tech bubble. I built home equity and switched houses making good money until the housing market crash. It took almost 10 years to get back to where I was. Housing was down 35% in my area, and took 7 or 8 years to get back up. It went up 20% just in the last year and people are making crazy money again. Some say it will keep going, some say it will crash. I came out ahead, but all of that volatility averaged out to a decent return, but probably less than I would have done with a boring portfolio.
Someone else will have to give high risk advice. I wanted to point out that with a conservative portfolio of investments (of any kind) you can save a ton of money in the long term. A $200,000 car should be attainable to anyone who is willing to set money aside and take some time saving. Regardless of the goal, everyone should have a long term investment and savings plan. It costs so little each month and the long term returns are huge. It does not need to be anything fancy or sexy.
The best advice I can give is to get an advisor and start a long term investment plan.
Back to the OP. Any salary will work if you can save money long term and are willing to wait for that car.
I think everyone has started talking about some high risk stuff. You do not get crazy returns without some serious risk. Investing 101.
What I am talking about is a basic portfolio. A mix of stuff that spreads your risk around. I like mutual funds. A mutual fund is a balanced portfolio of investments, like stocks, that is managed by a group of investors. You buy a share of a balanced portfolio. These tend to grow in overall value of around 6% to 7% a year. Some of the good ones I just looked up are doing around 10% or better in the last 5 years. This is basic investing and pretty low risk. You can adjust your portfolio to assume more or less risk in a very controlled way.
I bought stocks in the past, as did a bunch of good friends. We all had the same experience. We made serious money on some and lost our shirts on others. At the end of the day, it balance out to a moderate return. To make that big fast money, you have to take some serious gambles. Those gambles can destroy your finances if you make a mistake. I made a fortune and then lost it all in the tech bubble. I built home equity and switched houses making good money until the housing market crash. It took almost 10 years to get back to where I was. Housing was down 35% in my area, and took 7 or 8 years to get back up. It went up 20% just in the last year and people are making crazy money again. Some say it will keep going, some say it will crash. I came out ahead, but all of that volatility averaged out to a decent return, but probably less than I would have done with a boring portfolio.
Someone else will have to give high risk advice. I wanted to point out that with a conservative portfolio of investments (of any kind) you can save a ton of money in the long term. A $200,000 car should be attainable to anyone who is willing to set money aside and take some time saving. Regardless of the goal, everyone should have a long term investment and savings plan. It costs so little each month and the long term returns are huge. It does not need to be anything fancy or sexy.
The best advice I can give is to get an advisor and start a long term investment plan.
Back to the OP. Any salary will work if you can save money long term and are willing to wait for that car.
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