MarcoInaros Posted April 12, 2014 Posted April 12, 2014 Hi. I was curious what others thought of this. I have been renting a small apartment in downtown for the past 3 and a half years, and was thinking of buying a house. I put an offer on a house in a suburb close to downtown. I thought it would be a good idea to build some equity, have more space, and live closer to where I work. I was concerned about perception issues. Would it look weird to potential dates? Would it be weird for a guy to live on his own in a house? Would the neighborhood think I am weird? What about a condo? I was avoiding condos because I didn't want to deal with the HOA fees. Thanks for your opinion.
topaMAXX Posted April 12, 2014 Posted April 12, 2014 Personally, I think it's a waste of money unless you plan to flip the property. Also, stop being so concerned about what others thinks. Again, I'd be more concerned about the financial waste. 2
carhill Posted April 13, 2014 Posted April 13, 2014 IMO, crunch the numbers and, if home ownership is affordable and meets your needs, go for it. I bought my first house when I was 24 and was on my third one when I finally got married around age 40 and bought two more after getting divorced. Real estate isn't for everyone (my tenants are testimony!) so go into it with open eyes and do your homework. If it doesn't work out or speak to you, stick to renting. One thing I can share is that it's been a lot of work taking care of a big house and large property as a single guy. It wasn't so bad when I was married since we shared the household chores. In that vein, don't overbuy space; IMO stick with the smaller side of the median of the neighborhood, and pick the neighborhood carefully. Figure on living there five to seven years if buying, unless you happen to buy into a fast growing and in demand area. Can't say I ever had a woman comment negatively or be concerned about my owning a house. My exW's only concern was that it was so far out in the sticks (her commute to work). Other than that she liked the country. Good luck. 4
Raena Posted April 13, 2014 Posted April 13, 2014 Personally, I think it's a waste of money unless you plan to flip the property. Also, stop being so concerned about what others thinks. Again, I'd be more concerned about the financial waste. It really isn't a waste to purchase a home... depending on the market. The house I'm currently living in... the owner purchased it for 70k and is selling it for 180k 20 years later. I wouldn't say that was a waste. On top of that, she rents it our for more than the mortgage is so she makes money off of it every month. As for whether it makes you look weird OP... no it doesn't. Personally, I think it makes you seem more stable if you are able to have your own home. Of course, I don't own a home yet either but I'm thinking about buying one for myself too. I can't see how it would deter your dates in anyway. 2
topaMAXX Posted April 13, 2014 Posted April 13, 2014 It really isn't a waste to purchase a home... depending on the market. The house I'm currently living in... the owner purchased it for 70k and is selling it for 180k 20 years later. I wouldn't say that was a waste. On top of that, she rents it our for more than the mortgage is so she makes money off of it every month. As for whether it makes you look weird OP... no it doesn't. Personally, I think it makes you seem more stable if you are able to have your own home. Of course, I don't own a home yet either but I'm thinking about buying one for myself too. I can't see how it would deter your dates in anyway. I agree that it CAN be a good idea and I'm currently looking into real estate. But buying a home that you don't need is not very wise. Also, a $110k gain in 20 years is not the best ROI.
SolG Posted April 13, 2014 Posted April 13, 2014 Lostjeff, To me a single man who is investing is SMART, not weird. Contrast taking your date back to YOUR house with, say, taking your date home to your room at Mum and Dad's... You will definitely be on the win end of possibilities IMO! I know lots of single guys with property. One particularly enterprising guy has a three bedroom apartment with two carparks in an inner city location; he rents out one bedroom and one of the carparks. He's been virtually positively geared from the get go! And my nephews, all of whom are still young and single, own their own houses. I have not observed this being an impediment to the ladies at all :-) In my experience, a guy (or a girl for that matter) who hasn't started to exhibit some kind of finance/investment savvy by about his late-twenties is the one at a disadvantage. I think you are on to a good thing! Good luck. 4
Author MarcoInaros Posted April 13, 2014 Author Posted April 13, 2014 Personally, I think it's a waste of money unless you plan to flip the property. Also, stop being so concerned about what others thinks. Again, I'd be more concerned about the financial waste. I know. The Financial aspect is another issue that I didn't bring up. I know for a fact that my rent is less than the mortgage interest, taxes, insurance, and utilities put together for this house. But on the other hand I will be building equity, and will have a lot more space. Also I'll take advantage of mortgage rates while they are low. It's a tough call, since I could just rent until I am married, but if I take that course of action I may not buy anything for several years.
what_a_blonde Posted April 13, 2014 Posted April 13, 2014 Personally, I think it's a waste of money unless you plan to flip the property. Also, stop being so concerned about what others thinks. Again, I'd be more concerned about the financial waste. This. ^ I wouldn't be concerned with what others think. I've known multiple men who have purchased homes on their own before finding their wives. Also, sometimes home ownership demonstrates stability and independence so women might like that. Either way though.. be more concerned if it makes sense for YOU and your current finances, not your future potential dates or whether you will fit in with your neighbors.
carhill Posted April 13, 2014 Posted April 13, 2014 OP, something else to consider is your income level and source and taxation. Real estate can be an aggressive and legal tax shelter/avoidance vehicle, both residential (your residence) and investment (rental) property. If you're a wage earner and 'exposed' (compared to a business owner), real estate can make sense from a tax standpoint. Like I suggested, crunch the numbers and see how it goes. One relationship-related thing to watch out for...... often, if you're getting married or intending to live together long-term as an unmarried couple, a woman whom you're marrying/LTR may want a 'fresh start' for the M/LTR and that means a 'couple' house, especially for those who are young. Keep that in mind too. One strategy is to buy a type of house and neighborhood which lends well to renting and convert the house to a rental when getting married and buy a new marital residence. 1
Grumpybutfun Posted April 13, 2014 Posted April 13, 2014 If you have a good career and good credit, buying can make a lot of sense. I always buy and have saved and made money as a result...it can still be a good investment if one is smart and aware of the market. When renting you are basically paying someone else's mortgage without any return or tax credits. Make sure you buy a house that you can truly afford, even if you are laid off for a few months before finding your next job. As far as what others think, it doesn't really matter. Life can't be lived worrying about such matters because many will not agree with the many. As far as dating goes, a house or lack of house won't make any difference to a woman who likes you for you, and that is what you are looking for. Congratulations on your future house purchase, Grumps 2
SolG Posted April 13, 2014 Posted April 13, 2014 I agree that it CAN be a good idea and I'm currently looking into real estate. But buying a home that you don't need is not very wise. Also, a $110k gain in 20 years is not the best ROI. Ah contraire topaMAXX. $110k can be very good return in twenty years IF it's made from no actual capital investment. Consider; buy an investment property borrowing 100% of the purchase plus costs--interest only, engage a good property manager, tenant the property, rental income covers interest and other outgoings... And twenty years later you sell it, reap the return of the capital growth, and put 110k in your pocket for no upfront cost and virtually no effort. Or don't sell it if it still has good growth prospects, and use that equity instead to borrow against for other investments. And equity/capital growth isn't always everything. Sometimes, particularly at the lower end of the market, low upfront cost and higher rental returns mean good positive gearing and therefore good cash flow. Caveat--but it does take research to get the right properties in the right place at the right time. And good advice from a mentor or professional can be invaluable. And I do understand that it will be more difficult in markets like the US that have bitten the big one in the GFC. And, buying a property to live in is a much different proposition than a pure investment--but depending on your sense of innovation and the applicable tax laws, etc, it's still doable to make it investment savvy :-) OP, back to you... as I think everyone here has pretty much said the same thing. Do what's right for YOU. And go get good advice. One thing I would say though, talk to your adviser about diversifying as well. It's never wise to put all your investment eggs in one basket unless you're sure that's the right thing for you.
topaMAXX Posted April 13, 2014 Posted April 13, 2014 Ah contraire topaMAXX. $110k can be very good return in twenty years IF it's made from no actual capital investment. Consider; buy an investment property borrowing 100% of the purchase plus costs--interest only, engage a good property manager, tenant the property, rental income covers interest and other outgoings... And twenty years later you sell it, reap the return of the capital growth, and put 110k in your pocket for no upfront cost and virtually no effort. Or don't sell it if it still has good growth prospects, and use that equity instead to borrow against for other investments. $110k over 20 years is about $5,500 per year. That's pretty bad. That person could have made way more if they invested in Apple or started their own business. Or got a part time job and didn't tie up their money. While I agree that real estate CAN be a good idea (as I said before), this is a pretty awful ROI, as I said before.
Allumere Posted April 13, 2014 Posted April 13, 2014 Outside of the equity and investment side of things. Lets talk reality. Homes take work and money...alot, whether new or use. So after the monthly mortgage & insurance payment, real estate taxes, add in electric, oil/gas, water & sewer, cable or satellite. Got a lawn? Then you need something to cut it with and the time to do it or the money to hire someone. Landscaping? Gutter Cleaning? House cleaning? When something breaks, can you fix it or will you have to hire someone. If you live in a subdivision what are the HOA fees (sometimes they are ridicules)? Owning a home sounds good but there is a reality that doesn't mesh with everyone's life style unless you have a lot of money.
thefooloftheyear Posted April 13, 2014 Posted April 13, 2014 (edited) It really isn't a waste to purchase a home... depending on the market. The house I'm currently living in... the owner purchased it for 70k and is selling it for 180k 20 years later. I wouldn't say that was a waste. On top of that, she rents it our for more than the mortgage is so she makes money off of it every month. As for whether it makes you look weird OP... no it doesn't. Personally, I think it makes you seem more stable if you are able to have your own home. Of course, I don't own a home yet either but I'm thinking about buying one for myself too. I can't see how it would deter your dates in anyway. Ive seen that type of appreciation over the years and made a lot of money in equity turning them over..That being said.. The days of that kind of real estate appreciation ended 10 years ago...And its not coming back anytime soon.. As a lifelong homeowner whose house is paid off(and worth a LOT -even in this market). the equity is doing absolutely NOTHING for me.., I gotta say that as of right now..the reality is that a rental is making a lot more sense-especially if you can make that money you would use for the house earn in other arenas.. TFY Edited April 13, 2014 by thefooloftheyear 2
VeronicaRoss Posted April 13, 2014 Posted April 13, 2014 I went through the same angst (maybe more) when I bought a place of my own in my 30s. So glad I bought, it's a whole other world. A man who owns a place, it's a fantastic signal to women about how you are stable and responsible. If you enjoy the thought of working on it and making it your own, that's where you want to be. Renting is less work, no doubt. Take your time, make sure you love it. 1
M30USA Posted April 13, 2014 Posted April 13, 2014 Who cares what people think? Incidentally, I guarantee you will find that women become more interested in you as a result of you owning your own place.
AlwaysGrowing Posted April 13, 2014 Posted April 13, 2014 Nothing weird or odd about a single person purchasing a home. Look at all the different options. Do not discount anything until you investigate how the numbers/lifestyle look. A dear friend of mine purchased his first home with a basement suite. It covered the cost of the mortgage and he paid the rest of the bills. I am fortunate to live in an area of North America that wasn't really hit by the bust or the downturn in the economy. My home has doubled in value in the ten years that I have owned it.
thefooloftheyear Posted April 13, 2014 Posted April 13, 2014 Who cares what people think? Incidentally, I guarantee you will find that women become more interested in you as a result of you owning your own place. Sure they will-especially if its on the man's dime....Women nest...it's in their DNA...Most dont ever bother to look at the bottom line($).. But I wouldn't do it for those reasons...Look at it pragmatically..I dont care what anyone says...The truth is I have made more money trading stocks and buying classic cars that i have made in real estate-and I was lucky as far as real estate goes...I live in annually one of the top 10 counties in the country for property values. People fall in love with houses....I used to be that way....After paying a property tax bill that rivals the yearly salary of entry level accountants and the constant upkeep...it begins to get old.. Just crunch the numbers and make sure you do what makes most sense to your bottom line...Dont worry about what the other side wants/needs-especially if you dont have anyone to share in the expense and potential loss/aggravation... TFY 1
Tiger Lily Posted April 13, 2014 Posted April 13, 2014 I've actually thought that single men were lucky because they can buy a house without a stigma, and that single women sort of had a harder time. It feels like there are more judgments about independent women, especially because owning a home can mean a lot of more physical work in caring for the home/yard and living in a home alone can seem more dangerous. Not to make this a gender war! I just never really considered it weird for a guy to own a home.
RedRobin Posted April 14, 2014 Posted April 14, 2014 I've never considered it weird for either gender to buy a house as a single. Here's the deal though... You will be spending a considerable amount of time taking care of it. If you enjoy that, then great. But if you are serious about dating and finding a partner, it takes time away from that and other pursuits. Or you will need to pay someone to do the maintenance. Since I'm too cheap for that, and I enjoy doing a lot of those things... I do it myself. As another poster said... it does get old. My house is close to being paid off, but I would still have to pay more 'rent' to the city/county I live in... in the form of property taxes... than I would pay in rent (total) if I got a nice little apartment near my parents in FL.... and the pay isn't even that much less down there. It used to be... but it isn't anymore since most of New York State other than NYC is economically depressed. These are things you ought to consider when thinking about buying property.
Imported Posted April 14, 2014 Posted April 14, 2014 What would a girl think if a guy with his own house has no walls between his garage and living room, insulated the garage and garage doors, had a full on car lift in the garage and pretty much kept his cars and motorcycles in the living room? Not "red neck" style. It will be clean, professional and stylish looking. I guess this is what happens when a guy never gets married . Nobody keeps him in check. 2
Smilecharmer Posted April 14, 2014 Posted April 14, 2014 I don't think it is weird at all. It shows you are financially stable and responsible. My husband had his own home when we met and I was really impressed since he was so young. Do this for the right reasons though, not because you think some woman will like it. Home ownership is a big step and maintenance is all up to you. I wouldn't go back to renting now for anything, home ownership really is a different experience. 1
PinkInTheLimo Posted April 14, 2014 Posted April 14, 2014 I don't know if your question is about buying a house in contrast to buying an apartment, or rather about the fact of becoming the owner of a place to live on your own. I always imagined myself buying a property once I met a man I wanted to spend my life with but since I did not meet him, I eventually bought an apartment on my own. A house would have been to big and too expensive in the city I live in. Buying real estate is a good investment and if you have a good intrest rate I see it as a reversed way of saving. It is for me in any case coz I am not a saver. One thing you have to keep in mind is that when you would meet a woman it is possible that she does not like your house. And if she does not like it, you will have to get rid of it because you will not be able to convince her to live there (if you would it might become a deal breaker for her). If I would meet a guy I think I would prefer that both of us sell or rent out our property so that we can look for something that we buy together. At my age (end of my forties) I expect a man to own some real estate.
Thomas the Red Fox Posted April 15, 2014 Posted April 15, 2014 Ithe owner purchased it for 70k and is selling it for 180k 20 years later. I wouldn't say that was a waste. On top of that, she rents it our for more than the mortgage is so she makes money off of it every month. That's impressive... even though 70k twenty years ago was 110k today (inflation). Still a 70k profit today. Not bad at all. But to the OP, I don't think it makes a difference whether you buy a house single or married.
topaMAXX Posted April 15, 2014 Posted April 15, 2014 Sure they will-especially if its on the man's dime....Women nest...it's in their DNA...Most dont ever bother to look at the bottom line($).. But I wouldn't do it for those reasons...Look at it pragmatically..I dont care what anyone says...The truth is I have made more money trading stocks and buying classic cars that i have made in real estate-and I was lucky as far as real estate goes...I live in annually one of the top 10 counties in the country for property values. People fall in love with houses....I used to be that way....After paying a property tax bill that rivals the yearly salary of entry level accountants and the constant upkeep...it begins to get old.. Just crunch the numbers and make sure you do what makes most sense to your bottom line...Dont worry about what the other side wants/needs-especially if you dont have anyone to share in the expense and potential loss/aggravation... TFY And the worst part is that owning real estate will tie up A LOT of money. The only thing I would look at doing these days is a buy a home that went into foreclosure, flipping it, and selling it. Lots of time and money would go into that though.... 1
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