House or car? New or used car?
My question is two fold. A bit of background to start things off:
Income before tax: 45-50k/year -- expected to increase when I get my CMA in 4 months
Location: Atlantic Canada
Savings now: 33k combined -- 23k in RRSP and 10k in TFSA
Debt: 3k on LOC -- advance on next year's tax refund
Amount I can save each month: $1k/month if I half-tried
Possibly relocating within Atlantic Canada this summer/fall
I currently drive a 10+ year old car and it is coming towards the end of the road for it. My goal initially is to buy a house this summer @ 20% down. Based on my calculations and income, my max for a house is $175-$180k which will get something decent starting out where I am now. My first question is, based on my current situation should I buy a used car or a house first? Obviously I wouldn't go new car then house because it would seriously hamper my ability to get a mortgage for that amount with that debt load. Keep in mind I only have access to $10k if I had to get a car tomorrow.
Assuming I were to buy a house first, would I get a brand new car or a used car? New cars I'm looking at a Civic, Corolla, Mazda 3, Mazda CX 5, or Mitsubishi RVR. If I were to get new I'd keep it for 4 years.
Thanks.
Income before tax: 45-50k/year -- expected to increase when I get my CMA in 4 months
Location: Atlantic Canada
Savings now: 33k combined -- 23k in RRSP and 10k in TFSA
Debt: 3k on LOC -- advance on next year's tax refund
Amount I can save each month: $1k/month if I half-tried
Possibly relocating within Atlantic Canada this summer/fall
I currently drive a 10+ year old car and it is coming towards the end of the road for it. My goal initially is to buy a house this summer @ 20% down. Based on my calculations and income, my max for a house is $175-$180k which will get something decent starting out where I am now. My first question is, based on my current situation should I buy a used car or a house first? Obviously I wouldn't go new car then house because it would seriously hamper my ability to get a mortgage for that amount with that debt load. Keep in mind I only have access to $10k if I had to get a car tomorrow.
Assuming I were to buy a house first, would I get a brand new car or a used car? New cars I'm looking at a Civic, Corolla, Mazda 3, Mazda CX 5, or Mitsubishi RVR. If I were to get new I'd keep it for 4 years.
Thanks.