I had this conversation with an ex girlfriend the other day.
In itially I said my maximum racing effort would be 10% of my house but then decided that was way more money than I should spend. I then said 5% meaning a Million dollar house has a $50k race car + trailer etc..

What would you say is logically right?

 

Wow, i never looked at it that way, but I guess as long as you dont tap in to the equity of the house (ie, 2nd mortgage, home-equity loan etc.) then it's ok. Doing the math, my yearly budget would be only 2-3 percent of my home value, and this is only for autox and a few track days/schools.

 

are we talking annual budget or a one time allocation of funds?

Are you using equity to go racing?

 

I spend between 15 and 20% of my homes value each year on racing. But I'm not married and can do what I want with my money

 

When I raced my SRX-7, I didn't own a house.

If I return to racing anytime soon, it will be a "budget" class - ITC, FV, etc. Assuming I buy a competitive car, that would likely put the car value at <2% of my home's value.

Annual racing budget would 2-3% of home value.

 

Uhh, like 0.1% here...

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by jsi &raquo;</TD></TR><TR><TD CLASS="quote"> this is only for autox and a few track days/schools.</TD></TR></TABLE>

 

I guess it all depends on where you live. My house value is double what I payed for it, yet I still can't afford to buy a race car ..... gotta love CA. I don't know how anyone affords to race in CA

 

If by "house" you can include a motorhome that can tow your car and trailer to the track...then you can be safe to say that you have an advantage. Dual purpose dwelling!

Location is key for your dwelling, so park it in a nice neighborhood and the value of the motorhome will go up

 

So half my paycheck every week is too much?

 

Marry a woman that can't do math!

 

Related conversation from a rally last year:


RALLY DUDE: Where's Coleman? I haven't seen him all year...

ME: Aw, he's taking the year off. Trying to buy a house.

RALLY DUDE: That's bitchen. Tell Dave that's the best thing he could ever do; then he can refinance and race for a whole season!

 

I meant value of your racing effort at any time. That being FMV of your racing car and all its related parts. IE- Spares, trailers etc..

I would say for anything like autox 5% is extremely high!

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Track rat &raquo;</TD></TR><TR><TD CLASS="quote">Marry a woman that can't do math! </TD></TR></TABLE>

I wouldnt marry that one.. She hates economics

 

i would say around 2-3% at most

 

Race car cost &lt;2% of home value...

Race cars are wear items, I just can't see having too much $$ tied up in one

Christian

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Track rat &raquo;</TD></TR><TR><TD CLASS="quote">Marry a woman that can't do math! </TD></TR></TABLE> Ha that is great.

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Xian &raquo;</TD></TR><TR><TD CLASS="quote">Race car cost &lt;2% of home value...

Race cars are wear items, I just can't see having too much $$ tied up in one

Christian</TD></TR></TABLE>

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Formula Racing &raquo;</TD></TR><TR><TD CLASS="quote">I meant value of your racing effort at any time. That being FMV of your racing car and all its related parts. IE- Spares, trailers etc.. </TD></TR></TABLE>

The problem with that is home values generally go up, and race car/trailer/spares, etc go down in value. So you could start out with say 5% and end up with 1% in a year.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by bosco500 &raquo;</TD></TR><TR><TD CLASS="quote">But I'm not married and can do what I want with my money </TD></TR></TABLE>

I love that. That's good stuff... seriously.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Track rat &raquo;</TD></TR><TR><TD CLASS="quote">Marry a woman that can't do math! </TD></TR></TABLE>

wow... ya'll are just a house full of dimwits

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Formula Racing &raquo;</TD></TR><TR><TD CLASS="quote">I would say for anything like autox 5% is extremely high!</TD></TR></TABLE>

I'm going to have to move some place where houses cost more. I could surpass that number for mods to a stock class car.

 

Sleep in your race car = 100%

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Formula Racing &raquo;</TD></TR><TR><TD CLASS="quote">I had this conversation with an ex girlfriend the other day.
In itially I said my maximum racing effort would be 10% of my house but then decided that was way more money than I should spend. I then said 5% meaning a Million dollar house has a $50k race car + trailer etc..

What would you say is logically right?

</TD></TR></TABLE>

The question is actually not logical at all.

Racing is an ongoing expense. It is not an asset.

You should be focused on the percentage of expenditure vs income.

Unless of course, your plan revolves around waiting for the real estate market to take off increasing the value of your homestead once you have maxed out your racing budget. I guess you could also gain some "cap room" by depreciating the value of the racecar, tow vehicle, trailer, tools, etc.


<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by jisu009 &raquo;</TD></TR><TR><TD CLASS="quote">Are you using equity to go racing?</TD></TR></TABLE>

Jeremy can help you out with your plan. Buy the house and then get your 2nd mortgage at 5% of your original loan and enjoy. At least when the money runs out, you will know when to stop.

Rick

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by turfer &raquo;</TD></TR><TR><TD CLASS="quote">
Jeremy can help you out with your plan. Buy the house and then get your 2nd mortgage at 5% of your original loan and enjoy. At least when the money runs out, you will know when to stop.

Rick</TD></TR></TABLE>

haha..my thoughts exactly. If anyone needs to take out a second mortgage to go racing....feel free to PM me.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by drdisco69 &raquo;</TD></TR><TR><TD CLASS="quote">Sleep in your race car = 100% </TD></TR></TABLE>

You can live in a race car but you can't race a house!

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Sean O’Gorman &raquo;</TD></TR><TR><TD CLASS="quote">
You can live in a race car but you can't race a house!</TD></TR></TABLE>

Giving this some more thought.
I think I may have raced a couple of them by now.

Rick