Selling House for a Rolex

[123Blueface]

Originally Posted by jasonsensation

THAT. Is exactly it.

£10,000 to pay off a loan i used to get the batman + a car
£10,000 ill hold waiting for a daytona like i waited for batman

£20,000 deposit on new house

Except it’s not costing you 20,000.
How long is the loan? At what interest?
Check out how much that 20,000 is really going to cost you.
In the US, if you reinvest the profit of a house into your new house, within a specific period of time, you defer and don’t pay any taxes on the profit. In the long term, that’s the smart way to go.
You can always buy a watch later. You already have a very nice BLNR.

As an example in US Dollars, on a $20,000 loan, 4%, 30 years, that $20,000 cost you $35,000.

[Hulkhunter]

In my opinion, only you know the true state of your finances. Everyone on here is being asked to make a judgement without the facts, there are too many variables for anyone else to make an informed call.

For example, if you were in the later stages of life, had a large amount of equity in the home and were downsizing it could make sense.

On the other hand, if you are moving up the ladder it would seem like less of a smart move.

[Raku]

Originally Posted by jasonsensation

THAT. Is exactly it.

Profit is split:-

£10,000 to pay off a loan i used to get the batman (AD) + a car

£10,000 ill hold waiting for a daytona like i waited for batman

£20,000 deposit on new house

I would put all the savings in the deposit.
This will give you a lower LTV ratio which subsequently will allow you to get a lower interest rate on your mortgage, saving money in the long run.

[Vanmarsenille]

For me, the fact that you borrowed money to buy a BLNR, and need the proceeds of a house sale to pay off that loan would suggest that you’ve probably got your priorities in the wrong order.

[jasonsensation]

Raku i need to pay off this £10,000 BLNR loan, no matter what from the profit

its £10,000 AD daytona vs lower mortgage by £10,000

[ferrissteve11]

Real post or troll I wouldn't do that one. If you had to scratch a watch itch, maybe put away several thousand toward it, but I wouldn't dump that much of post house sale proceeds. YMMV

[jasonsensation]

Originally Posted by Vanmarsenille

For me, the fact that you borrowed money to buy a BLNR, and need the proceeds of a house sale to pay off that loan would suggest that you’ve probably got your priorities in the wrong order.

Profit is profit though my friend, i feel like my house bought my watch

[mfm22]

I'm starting to think That " Watches " can be an unhealthy addiction

[Devildog]

Originally Posted by TswaneNguni

30% oft the profit from the house sale to buy a Daytona ..you didnt make much profit !

The OP, like me, is in the UK. Trust me, its all relative

[tudorbaja27]

For God's sake - do not borrow to buy a watch. EVER.

Watches are not necessities.

Come on, man.

[Hulkhunter]

Originally Posted by jasonsensation

Raku i need to pay off this £10,000 BLNR loan, no matter what from the profit

its daytona vs lower mortgage

The wording of this post suggests you may be over stretching.

As previously stated, only you can decide...

[Kilometerman]

You are falling into the trap of mental accounting.

Money is money. It really doesn’t matter if it came from selling a house for a profit or a loss. It doesn’t matter if it’s 30% or 3% or 300% of the profit you made. These are just mental gymnastics to rationalize something you want to do.

Here’s an exercise to potentially free yourself of the bias:

Assume you have absolutely no assets other than cash. How would/should you allocate those dollars to things like a house, a car, investments, savings, watches, etc?

If you’re borrowing money to pay for your next house, and you’re taking “profit” out of your old house to pay for a watch, you’re essentially borrowing money to pay for the watch.

IMHO, I wouldn’t borrow money to pay for a watch. Especially as it seems that watch prices have turned the corner and are trending lower.

[JParm]

Originally Posted by 123Blueface

Except you guys missed the part that he recently bought a BLNR, on a loan, and is slowly paying for it.
He is using profit to buy more luxury watches while he has outstanding loans for luxury watches.

Yup, definitely missed that part...and that totally changes things.

Knowing that you've got loans on other watches (or anything, for that matter), I'm changing my opinion to "most definitely NO!!".

[123Blueface]

Originally Posted by jasonsensation

its £10,000 AD daytona vs lower mortgage by £10,000

No, it’s not.
It’s not a lower mortgage of 10,000 unless you are lucky enough to not be doing an average mortgage of 30 years and somehow get it interest free.
You are ignoring the true cost of that 10,000 over 30 years.

That said, given some of your responses, heck if worth it to continue to try to give you sound financial advice. I bought five Rolex in a year thanks to having no mortgage as home paid for. Heck if any of us know what we are talking about.

[padi56]

Originally Posted by 123Blueface

Except you guys missed the part that he recently bought a BLNR, on a loan, and is slowly paying for it.
He is using profit to buy more luxury watches while he has outstanding loans for luxury watches.

Exactly that.

[derekhayden]

Originally Posted by jasonsensation

Raku i need to pay off this £10,000 BLNR loan, no matter what from the profit

This post alone should answer your question. If you wouldn't have been able to pay off the first watch loan without the profit of your house selling than you should have never taken a loan out for a watch. Afraid your falling into the category of perceived wealth.

[wb55]

Originally Posted by jasonsensation

I'm Welsh, i bought the house cheap to begin with.

surely i dont need to put all profit towards new mortgage

I know you're Welsh but this has got to be a troll, right? You put nothing toward a mortgage. If you don't buy a watch and put more money toward you next purchase (and related solicitor fees and stamp duty etc) then you will take out less of a mortgage.

Imagine holding back on your deposit to buy a watch then paying added interest on your mortgage to do so. I hope you live alone or that's incredibly selfish.

Have you worked out your LTV with and without buying a new watch? Absolutely nuts.

[beshannon]

Originally Posted by jasonsensation

Profit is profit though my friend, i feel like my house bought my watch

Or could pay down debt or pay for health care or pay for future needs or pay for anything far more important than high end luxury jewelry.

Good luck, I believe this is far more common than many believe and speaks to a much larger issue.

[jasonsensation]

Originally Posted by derekhayden

This post alone should answer your question. If you wouldn't have been able to pay off the first watch loan without the profit of your house selling than you should have never taken a loan out for a watch. Afraid your falling into the category of perceived wealth.

and then i wouldnt got the discontinued BLNR, as i didnt have the savings, so needed the loan

[TswaneNguni]

Originally Posted by 3sheets86

I'd be more likely to sell my watches to put toward a house in order to pay less interest on a mortgage.

Best is to buy the house without a mortage before considering to buy Rolexes from an AD.Obviously Grey isnt even in the picture

If I had outstanding money on a loan for my hoiuse ,I wouldnt own Rolexes .......... well,maybe one.

[Devildog]

Originally Posted by jasonsensation

Profit is profit though my friend, i feel like my house bought my watch

Making some generalist assumptions, at current mortgage rates and assuming 20 years left to pay, that £10,000 you hold back is going to cost you £20,000.

That's practically Daytona C market value. So not as crazy as some may think

[wb55]

Originally Posted by jasonsensation

Raku i need to pay off this £10,000 BLNR loan, no matter what from the profit

its £10,000 AD daytona vs lower mortgage by £10,000

So is 20k 30% of the profit then? Did you make 70k?

What the total purchase price and what's your % of deposit?

[WAK4]

I've actually done the opposite... Unexpected move to a new house and funded the upgrade by selling off some of the collection vs hit savings or borrow more. The watch life is gravy

[mountainjogger]

Originally Posted by jpeezy14@hotmail.com

I don't know that people are totally understanding what the OP is saying.

He's taking 30% of the Profit to do something that he'll enjoy. Assuming he invests the remaining 70%, I don't see anything wrong with enjoying some fruits of the ROI.

As long as the OP is taking care of everything else that needs to be taken care of, why not take some of it for enjoyment? Can't have fun with 100% of the profit going to the bank...

This. I am revising my earlier post...

All money is green. So whether you earned as wages, in the market or by selling a home, does not matter.

However, as for my circumstances... while I don't plan to ever move, if I ever did and spent 30% of the profit on my watch collection, my better half would pack my bags and leave then on the street. So, I guess it all depends on your circumstances.

[jasonsensation]

Originally Posted by wb55

I know you're Welsh but this has got to be a troll, right? You put nothing toward a mortgage. If you don't buy a watch and put more money toward you next purchase (and related solicitor fees and stamp duty etc) then you will take out less of a mortgage.

Imagine holding back on your deposit to buy a watch then paying added interest on your mortgage to do so. I hope you live alone or that's incredibly selfish.

Have you worked out your LTV with and without buying a new watch? Absolutely nuts.

and i live alone, i'm 35 too

[jasonsensation]

Originally Posted by mountainjogger

This. I am revising my earlier post...

All money is green. So whether you earned as wages, in the market or by selling a home, does not matter.

However, as for my circumstances... while I don't plan to ever move, if I ever did and spent 30% of the profit on my watch collection, my better half would pack my bags and leave then on the street. So, I guess it all depends on your circumstances.

Dump the better half i say, what do they know

[dnpina]

How many rooms does your new Daytona have?

Sent from my Pixel 2 using Tapatalk

[Buzzlite]

Buy a Rolex from passive income, never buy luxury items from earned money. I wish I figured this out a long time ago.

[Santiago79]

Come on guys, lets be real here. He has the cash so why not use it to buy whatever he wants, does it really matter where the money comes from? I don't think so. Its better than taking a loan to finance "just a watch". It's still an investment when you think about it, The value will not go down anytime soon.
Go for it man and enjoy!

[TswaneNguni]

Originally Posted by Buzzlite

Buy a Rolex from passive income, never buy luxury items from earned money. I wish I figured this out a long time ago.

I like that .