Do players lease a mortgage on their houses?

[Puckgenius*]

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?

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[jigglysquishy]

They'd be absolutely fools to get a mortgage. Hell, I know quite a few regular people who never got a mortgage.

 

[Call of the loonie]

Probably a major reason for large signing bonuses is so that a player can pay cash for a house in his new city.

 

[coolwasabi]

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.

 

[redcard]

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.

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.

 

[danaluvsthekings]

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.

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.

 

[karnige]

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.

 

[VelvetJones]

Now why would you care?

 

[Fuzzy Bunny]

If you're Sidney Crosby, you billet at the owner's house for several years then live the big life.

 

[IndianCommitted]

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.

 

[tarheelhockey]

A lot of them don't have houses, period. They live in apartments or hotel rooms until the offseason when they return home.

 

[TCNorthstars]

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 still lives in Chicago and they 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.

Your facts are wrong. They might still have the house in CHI, but they moved to New York.

 

[TaketheCannoli]

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.

 

[IndianCommitted]

Your facts are wrong. They might still have the house in CHI, but they moved to New York.

Their offseason home is in Chi. I meant to say his wife has a store there.

http://hinsdale.patch.com/articles/nhl-wife-opens-downtown-hinsdale-decor-shop

 

[IU Hawks fan]

A lot of them don't have houses, period. They live in apartments or hotel rooms until the offseason when they return home.

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

________________________
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/

 

[LadyStanley]

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.

 

[l2y]

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

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

 

[AllByDesign]

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.

 

[Adz]

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.

 

[New User Name]

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

________________________
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/

Toews condo is awesome. Any idea where it is or what it's worth?

 

[RTN]

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.

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.

 

[Seanconn*]

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.

 

[RTN]

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.

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.

 

[Seanconn*]

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.

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

 

[barneyg]

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.

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).