If you a savvy person, choosing between Gen2 and a City makes a lot of different in your finance. The 4,998 difference in annual running cost, compounded over 5 years is 28,343 (at 6.3% annual return). That does not include the initial car price difference of almost 25,000. Go calculate and decide for yourself, am I throwing money out unnecessarily? Yep there are many other factors, but for me Myvi would be a much better option....The rule: You shouldn't buy a house that costs more than 2 1/2 years' worth of your income.
Why it works: During the wild years of the housing boom, consumers seemed to stop grounding their housing decisions in income. This rule can help remind consumers that income should be a primary criterion when deciding how much to pay for a house.
Grain of salt: One problem with this rule is it doesn't take into account how housing costs can fluctuate based on interest rates, says Pomeranz. For instance, a house that costs 2 1/2 times your income may be unaffordable in a high-rate environment but easy to pull off in a low-rate environment, says Pomeranz.
A better guide to whether to buy a home is rental prices in your area, says Finke. If you could rent a home that meets your needs for less than it would cost to buy and maintain a home, then renting is a no-brainer, he says.
Like the article, read full article here