Do players lease a mortgage on their houses?

Discussion in 'Fugu's Business of Hockey Forum' started by Puckgenius*, Oct 9, 2011.

View Users: View Users
  1. Puckgenius*

    Puckgenius* Guest

    Or do you think they just buy them outright? Do you think they even deal with mortgage lenders? When players get dealt they have to sell their home really quick, which they would lose a lot of money each time if say they only live in it for a year or two. Itd be cheaper and more ideal to just rent no?
     
  2. jigglysquishy

    jigglysquishy Registered User

    Joined:
    Jun 20, 2011
    Messages:
    4,097
    Likes Received:
    2
    Trophy Points:
    0
    Location:
    Regina, Saskatchewan
    They'd be absolutely fools to get a mortgage. Hell, I know quite a few regular people who never got a mortgage.
     
  3. Call of the loonie

    Call of the loonie Registered User

    Joined:
    Oct 7, 2007
    Messages:
    1,945
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    London, Ontario
    Probably a major reason for large signing bonuses is so that a player can pay cash for a house in his new city.
     
  4. coolwasabi

    coolwasabi Registered User

    Joined:
    Dec 18, 2005
    Messages:
    1,023
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Vancouver, Canada
    I'm pretty sure they do the same ****ing thing normal people do.
    That is, they do whatever makes the most financial sense FOR THEM.

    It's ignorant to group an entire league of players who (1) live in different cities (2) make wildly different salaries (3) and have different circumstances into 1 group.
     
  5. redcard

    redcard System Poster

    Joined:
    Mar 12, 2007
    Messages:
    5,434
    Likes Received:
    777
    Trophy Points:
    139
    This is a rather awkward statement to make, considering that the base annual salary of an NHL player is greater than the Average home price in the US and Canada.
     
  6. danaluvsthekings

    danaluvsthekings Registered User

    Joined:
    May 1, 2004
    Messages:
    4,420
    Likes Received:
    5
    Trophy Points:
    139
    Gender:
    Female
    Well it really would depend on the market too. A player is not going to get the same value for $500k in Dallas compared to Los Angeles.

    As for what happens to players when they're traded or leave as a free agent, you'll occasionally hear about players renting from former teammates. If the player does have a mortgage, they're not going to be forced into selling really quickly and taking a loss if they're traded mid-season. I'd hope most NHL players would have the money where they could afford to carry a mortgage a little while waiting for the right sale opposed to rushing into a sale and taking a huge loss. Plus there are going to be some athletes that move around and still keep a house in other cities for an offseason home.
     
  7. karnige

    karnige Real Life FTL

    Joined:
    Oct 18, 2006
    Messages:
    18,815
    Likes Received:
    907
    Trophy Points:
    169
    I know a lot of players who have 1 year contracts and aren't that good usually rent an apartment or something. if they are bigger then they just buy the house straight out with a bonus.
     
  8. VelvetJones

    VelvetJones Registered User

    Joined:
    Oct 10, 2007
    Messages:
    8,416
    Likes Received:
    0
    Trophy Points:
    0
    Now why would you care?
     
  9. Fuzzy Bunny

    Fuzzy Bunny Registered User

    Joined:
    Mar 5, 2007
    Messages:
    3,110
    Likes Received:
    0
    Trophy Points:
    0
    If you're Sidney Crosby, you billet at the owner's house for several years then live the big life.
     
  10. IndianCommitted

    IndianCommitted Hello, Duncan Keef

    Joined:
    Aug 2, 2010
    Messages:
    685
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Denver
    I feel like a lot of players probably keep their old houses in other cities when they are traded as others have said. I know for a fact Brent Sopel's wife owns a shop in a suburb and the still own a house there. Sopel loves Chicago and said he'll be back to live there someday whether he's playing for the Hawks or not.
     
    Last edited: Oct 9, 2011
  11. tarheelhockey

    tarheelhockey Highest Boss

    Joined:
    Feb 12, 2010
    Messages:
    57,953
    Likes Received:
    33,927
    Trophy Points:
    190
    Location:
    The Triangle
    A lot of them don't have houses, period. They live in apartments or hotel rooms until the offseason when they return home.
     
  12. TCNorthstars

    TCNorthstars Registered User

    Joined:
    Jan 5, 2009
    Messages:
    1,861
    Likes Received:
    116
    Trophy Points:
    81
    Location:
    Traverse City, MI
    Your facts are wrong. They might still have the house in CHI, but they moved to New York.
     
  13. TaketheCannoli

    TaketheCannoli RIP

    Joined:
    Nov 13, 2006
    Messages:
    10,478
    Likes Received:
    459
    Trophy Points:
    154
    Location:
    Ohio
    I think there may be a typo in the original post. I understood the question to be rent(lease) vs. buy, not mortgage vs. cash.

    I think they often grow roots in a community after several years. I also think whether a player buys or rents is determined by a number of things: family situation, security, age, financial situation, etc.

    As an example, Adam Foote bought a home in Dublin, a Columbus suburb when he was a Blue Jacket. He has a family, kids etc. It was a pretty nice home on Tartan Fields, a reasonably new upscale private country club with a Palmer designed golf course.
    Before the start of his last contract season, he put it on the market.

    Jody Shelley also has a family, and he bought a place and lives in the area in the off-season. Freddy Modin did the same. Manny Malhotra still owns a place, but I don't think he comes here anymore. IIRC, he rented it to a young player with a family last year.

    Others have bought homes/condos, but leave in the off-season. Most of them are the younger, single but established players like Rick Nash.

    Many of the early career players, those who are single and under 23 just rent a place.
     
  14. IndianCommitted

    IndianCommitted Hello, Duncan Keef

    Joined:
    Aug 2, 2010
    Messages:
    685
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Denver
  15. IU Hawks fan

    IU Hawks fan They call me IU

    Joined:
    Dec 30, 2008
    Messages:
    25,121
    Likes Received:
    124
    Trophy Points:
    111
    Location:
    Chicago
    Not hockey, but I've heard stories that Manny Ramirez lived at the Ritz Carlton in Boston when he played there and would crash weddings all the time :laugh:

    ________________________
    Toews has a sick condo

    http://www.chicagotribune.com/features/ct-toews-home-pg,0,6616895.photogallery

    And Keith and Seabrook as of last year were renting an apartment together
    http://www.foxnews.com/sports/2010/05/27/hawks-keith-seabrook-pair-ice/
     
  16. LadyStanley

    LadyStanley RIP Fugu

    Joined:
    Sep 22, 2004
    Messages:
    75,345
    Likes Received:
    3,034
    Trophy Points:
    186
    Gender:
    Female
    Location:
    Sin City
    I know the Sharks have arrangements with a (hotel) sponsor to put their players there for camp, call ups, trade acquisitions.

    IIRC, the CBA requires teams to pay for housing for newly acquired/call ups for 30 days. At that point, the player is either told to "get a place" or not.

    Many players opt for more of a "residential" hotel (think Marriot's Residence Inn) or furnished apartment (on a month-to-month or even week-to-week lease) rather than the somewhat impersonal hotel (and room service). (Pretty sure the Sharks have a number of options available for players, probably more based on whether their family is coming out or not.)

    Those who come in and are expecting to stay for at least a year, may bring family and rent/lease for a year. Usually guys want to get to know the neighborhoods before they purchase a place (and know due to contract/extension, they'll be around to enjoy it).

    Examples...

    Brent Burns and (human) family are renting a house for a year. With his five year extension, he'll be looking to purchase a home and perhaps bring the rest of his (reptile) family to California. (They're being cared for knowledgeable friend while he's in CA.)

    Logan Couture shared apartment with now-traded player last season (as a rookie). He just moved into a place. I get the vibe that it's a house (rather than an apartment). And a purchase. More opportunity for him to host visiting family, etc.
     
  17. l2y

    l2y Registered User

    Joined:
    May 30, 2011
    Messages:
    14
    Likes Received:
    0
    Trophy Points:
    0
    I believe Wellwood lived in a hotel in his last year in Vancouver, but people always called him weird so maybe it's an exception LOL
     
  18. AllByDesign

    AllByDesign Who's this ABD guy??

    Joined:
    Mar 17, 2010
    Messages:
    2,317
    Likes Received:
    0
    Trophy Points:
    0
    Occupation:
    Finance.
    Location:
    Location, Location!
    There really isn't a rule. Some players lay roots in the city they play in, while others rent or bunk in with someone. For younger players they will room with a vet, or rent as a group.

    As a funny aside, there are a few former Thrashers who had purchased million dollar homes that are now worth much less who have walked away from their mortgages in Atlanta. The housing bust seems to have affected all. :)
     
  19. Adz

    Adz Eudora Wannabe Sponsor

    Joined:
    Jun 18, 2005
    Messages:
    5,272
    Likes Received:
    515
    Trophy Points:
    139
    Occupation:
    Animation Studio Hon-cha?
    Location:
    Hermitage TN
    In real estate listings you occasionally see where a hockey or football player's house has been bought or sold in the Nashville area. They're in public listings.
     
  20. 2525

    2525 R.I.P. Fugu

    Joined:
    Jan 2, 2008
    Messages:
    11,304
    Likes Received:
    306
    Trophy Points:
    155
    Toews condo is awesome. Any idea where it is or what it's worth?
     
  21. RTN

    RTN Be Kind, Rewind

    Joined:
    Aug 28, 2008
    Messages:
    2,051
    Likes Received:
    0
    Trophy Points:
    84
    Well, 1/3 of that salary goes to income taxs. Then there are others expenses. If you are in your first or second year in the NHL, chances are you can't buy a decent house outright. They probably rent apartments near the rink and after a fews years buy a place.
     
  22. Seanconn*

    Seanconn* Guest

    unless we're talking about rookies playing in severely depressed housing markets like Phoenix, etc, odds are no one is even thinking about buying real estate.

    I'd assume any rookie with a head on his shoulders would have NOTHING to do with buying a mouse or mortgage, and would be investing as much of his money made from his entry level contract years.

    (1/4 salary to rent/food/vices, 1/4 in high risk stocks, 1/4 in medium risk stocks, 1/4 in low risk stocks.)

    Lets say you have 500K in income clear. You can easily live off 100K per year in terms of food, clothing, rent, alcohol, car. Invest the rest of that 400k, and depending on how well you do/ how much of a risk you are willing to take. you could turn that 400k into anything between 600k-1.5million, quite easily.


    Considering some guys have to play in New York City or LA, on a 900k salary per year, which works out to maybe 600K in disposable income per year, the only way they could buy a worthwhile house, is to invest that money in the market, and hope your investments have paid off well enough 3 years later to buy a house...

    a mortgage really doesn't make sense, unless the player has a strong urge to live in that city, or have a residence in that city (past your time playing for that team)... because unless you are sidney crosby or Alex Ovechkin... really any player can be traded, at any time.

    mortgages would be a really silly way of spending your salary. renting, and investing your money before you buy something big and worthwhile, is what I'm sure a lot of players do.
     
    Last edited by moderator : Oct 10, 2011
  23. RTN

    RTN Be Kind, Rewind

    Joined:
    Aug 28, 2008
    Messages:
    2,051
    Likes Received:
    0
    Trophy Points:
    84
    Rookies could use their money as down payments, mortgage apartments, and rent them out. That way the renters pay the mortgage and they gain the real estate. I know a lot of people in Vancouver who do this, but it requires a fairly stable real estate market.

    To use your example, you spend $400,000 on down payments for four $400,000 apartments. Let's say you charge the renters $1,500+ per month (depends on what city you're in) in rent to cover the mortgage. If you put in a little of your own money from time to time, in about 15 years, you'd have $1.6 million worth in apartments plus any appreciation in real estate value (In a place like Vancouver, this could be quite a bit).

    The numbers I used are very rough, but it gives you an idea of what many of my cousins are doing.
     
    Last edited: Oct 10, 2011
  24. Seanconn*

    Seanconn* Guest

    they could do that...

    but considering the hassles associated with being a landlord, they would probably waste money on a property management company.

    I think investing in the stock market would be much more common, and less of a hassle
     
  25. barneyg

    barneyg Registered User

    Joined:
    Apr 22, 2007
    Messages:
    2,383
    Likes Received:
    0
    Trophy Points:
    0
    Most of the time, buying a house/car (through a down payment + mortgage/loan) is a much better financial proposition than renting it. Whatever you pay on rent includes the landlord's return on his investment (i.e. profit). The monthly payments for a buyer (mortgage + taxes + utilities) may be slightly higher than a renter's, but part of the mortgage payment goes toward the principal and so increases the player's net worth as he pays it off -- none of your rent payments ever come back. Mortgage interest is also tax-deductible in the US.

    For someone who signs a 1-year deal or a bottom 6er with an uncertain status, those advantages may be outweighed by the transfer costs associated with the house (closing/commissions). But for a guy signing a 2+ year deal, most will own, not rent. It's not uncommon for players to rent out their house once they're gone as well (IIRC Kovalev and/or Jagr kept their houses when they left Pittsburgh).
     

Share This Page

monitoring_string = "358c248ada348a047a4b9bb27a146148"