Couple of questions

[The Y-man]

I agree.

No to mention it is very hard to fit two children, a babyseat and a wife into a Porsche.

Regards JO

Disagree - Porsche Cayenne .......

http://www.carsales.com.au/all-cars...5+4294963552&keywords=&tsrc=allcarhome&Nne=15

Cheers,

The Y-man

 

[AJG]

Call me uncultured but I'm quite partial to a LX SS Torana all tricked up with modern luxuries or fastback mustang.

http://www.carsales.com.au/all-cars...5&trecs=5&__D=lx ss torana&__sid=1243C3D81114

http://www.carsales.com.au/all-cars...cs=39&__D=fastback mustang&__sid=1243C3D81114

I'll take the porsche to get beat up at the shopping centre

 

[investor2009]

Thats one way of doing it, I guess it depends on whats happening with the equity at the time.

Do you need to use it on something else? Or are rents way more than holding costs and equity hard to use up because its growing so quick? If so, then purchasing the car with equity isn't a bad idea at all really.

It all depends on whats happening at the time and I'd expect that an investor who's out of the accumulation phase has made some good gains. If not then they should be looking at whats going wrong because property investing is about making money and having the ability to use it.

If I had say $2.5 MM in net equity, I'd be open to taking out say 150k (about 5% of your net equity) to pay for something like this:

http://www.carsales.com.au/all-cars...0&seot=1&__No=45&__Nne=15&trecs=103&silo=1011

If the car is for ''business use'' then that would be ideal, and I would pay interest only, claim depreciation, GST, and never pay the loan back... kind of write off the equity as a cost of a lifestyle purchase.

It could be CF +ve for the first couple of years done this way.

If it's not for business use then it would be more expensive to hold (as it's non-deductible debt), and you should consider repaying the loan.

A ''debt recycling'' strategy that capitalises deductible expenses and interest costs and channels spare cash flow to reducing such non-deductible debt may be beneficial here.

Alternatively, you could pay cash for it, or lease it using surplus +ve cash flow from your passive investments.

Or, you could do what I initially said, and, pay the interest costs using surplus +ve cash flow from your investments.

Personally, I'm not that interested in cars, but it seems to pull the ladies, so I'm re-considering.

Thing big, and be smart about it, and it may not be that silly or impossible a purchase.