It has been 7 years since I purchased “The Shire.” My tiny condo in a great area in Denver. Before I bought my place I had been a lifelong renter. An excellent renter and a great tenant, I never really thought about buying a place until one day I just did. I have to admit that I was hoping to buy a place with my future husband…umm, still not married.
So, I am writing this post for any single woman who is saying to herself I want to wait to buy my property. Don’t.
If you’re working a stable job, have the feeling that you will remain in your town for at least the next 3-5 years, have money for the deposit and maintenance, have good credit, and are purchasing smartly-buy your property.
But, buy wisely.
If you’re buying a house-buy a small house. I have a condo in a triplex. I have to work on the yard (as do the other owners) it’s a pain in the a@@ because you have to: pull weeds, mow the lawn, plant vegetation, pick up trash that blows in your lawn. The bigger the house the more you have to do. You may end up hiring people to manage those tasks for you-adding more to you monthly costs.
Buy a slightly quirky property in a great neighborhood and pay less for that property than everyone else! I live in a garden level unit-it’s not for everyone. Once I manage to marry myself off I will rent it out to a graduate student or single person without big pets. I will more than meet Paula Pant’s 1% rule (this was a complete accident that I was able to meet this rule).
Take your time!
Denver’s market is on fire right now. If you were buying here (or in another hot market) I would caution you about irrational exuberance. Prices go up and down in the real estate market or there are quirky properties that should get a second glance.
You’re not buying your dream home. Most people don’t buy their dream home until they are well into their 50’s or 60’s-when they have the money to buy a dream home. If you have the money now, then do your thing. But, if you don’t-the don’t worry about about “dream homes.” Buy your dream home for this moment.
If I bought my dream home (right now) maybe I would have a place in Glass House Denver or a loft downtown. Or, a place with an infinity pool.
Fears
Let’s talk about fears. Do you have some?? I’m talking about fears because they are probably keeping you from buying a property and growing your wealth. I’ve thought these things and I don’t think I’m the only one:
- If I buy a place and meet someone right after-what will I DO??!! Umm, you would do like most people in this situation. Sell the place (hopefully making a profit, or get a renter) Both options bringing money and assets into your marriage.
- I’m scared to own a property buy myself-I get it, it’s a lot of work and money. But having an asset (managed wisely) will empower you. I was paying $850 a month (not including: phone/electric/etc) for a rental before I purchased my place (in the same neighborhood!) I am paying hundreds less and building up my net worth.
I made mistakes when I purchased my property:
- I had a zero down purchase. I really lucked out that it went as well as it did.
- I should have had a fairly decent emergency fund.
- I live in a triplex-I should have asked a lot questions about the HOA and all of our responsibilities regarding upkeep, payment of dues, etc.
- Unless I buy the whole building I won’t buy a single unit in a duplex or triplex again. I want to control the whole property: maintenance and upkeep.
Things that worked well:
- My property value has doubled in 7 years.
- My mortgage is super low.
- It’s easy to maintain.
- I’ve accelerated my mortgage repayment and it’s getting pretty low. If I am able to make a decent amount of money for the next 3 years I could pay it off.
While I don’t regret purchasing this property, there are things that I would change about how I approached the process. I really lucked out and I’m really aware of that. As I move forward and think seriously about preparing for purchasing another property in 2-3 years, I will approach that purchase with a lot more finesse.
Are you a single woman who owns a property? Or, have you decided to wait? What are your fears about owning your own property? If you own a property, what steps did you take to make it a positive experience?
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thebrokeandbeautifullife says
Great point about not buying your dream home especially when you’re not looking to stay there forever or you foresee circumstances changing. I think about that a lot. I just worry I’ll never be able to afford a down payment on my own :/
Michelle says
You are a hustling machine! I believe that you will be able to rock the down payment and purchase a home whenever you’re ready. I’ve looked at properties in NYC and there are“reasonable” properties. The question is…what are you willing to go without and where are you willing to live?
Tonya@Budget and the Beach says
I wouldn’t have any doubts about buying a property as a single woman if I lived in an area where that was possible and I had a steady job.
Michelle says
There is a huge conversation that needs to be had about the cost of housing. I’ve been following trends not only in the U.S. but abroad and affordable housing has become a serious social issue. My mortgage is super cheap but I quite frankly think it was luck. It would be impossible to get the same tiny property now for what I paid in 2007.
Kara says
Yay for your property value doubling! That’s got to be a good feeling!
Michelle says
I was very fortunate to purchase a quirky (read small) property in a really good neighborhood. It’s all about location, location, location!
Kassandra @ More Than Just Money says
I owned a condo by myself during the time between my divorce and when I sold it. It was a 2nd level unit in a building of six units. The monthly condo fee was $100/month and that included snow removal and cutting of the grass but the owners took care of maintaining the shared grounds like hallways and stairs. I wouldn’t mind buying a condo again as I don’t care for yard maintenance one bit.
Michelle says
I don’t mind working on the yard as long as the other owners do their part! That has been a huge issue for awhile now. I’m the only one who works on the lawn regularly and I just don’t have the time for it so I get super irritated by the other owners. If I owned the entire building I could just get everything done on my time table without having to negotiate with other people 🙂
debtandthegirl says
I know a lot about home remodeling. Our house has changed quite a lot since my boyfriend bought it. I would def. not suggest buying a house unless you are going to be there a while. That being said, it sounds like you did everything right. Thats great!
Michelle says
I wish I knew more about home remodeling so that I could do some of the projects that need to be done: flooring and windows. Oh well, I’ll have to pay someone! It has worked out pretty well. I love my little place 🙂
Anne @ Money Propeller says
It’s so awesome that everything has worked out well for you. Being able to rent it to a grad school student is a pretty awesome exit plan, too.
I love that you call it The Shire!
Michelle says
The nickname came from Tonya from Budget and the Beach. I usually call it the “little place.” It’s close to a great university and public transit (light rail and bus lines) so I should be able to rent it to a grad student pretty easily.
Giulia says
I’m searching my ideal house and it requires a lot of time and energy, also cause I would like to find a home where I’m goint to stay much longer is possible!!!
Michelle says
I totally understand. Do over think the process. You’ll know it’s the right home because you’ll get a “feeling” when you’re in it 🙂 Good luck.
Greg | Travel Blue Book says
I love real estate, and I think that you’ve given some pretty solid advice here. I’m almost always of the mindset that buying is better than renting. The sooner that you are able to afford to buy, the better off you’ll be in the long run. Like you said, you can always turn your first house into a rental – which is what we did…and I’m so glad we did.
Michelle says
I am looking forward to purchasing another property and I’m leaning towards a multi-unit situation. A lot of things are in the air right now. What I will say is that I’m holding on to The Shire and renting it out!! It’s a very inexpensive and nice property. In fact, one of the other owners asked me about having their sister rent it from me. So, I already have a potential renter.
studentdebtsurvivor says
If I hadn’t “found” Eric when I did I absolutely would have purchased a property on my own. If you find the “right” property without “mr. right” and you’re in a good financial spot I think it makes sense (and is generally a good investment) to purchase a place on your own. You obviously made a really good decision and have been really dedicated to paying down your mortgage fast. Well done!
Michelle says
I am looking forward to meeting Mr. Right, but I would be out a substantial amount of my OWN money, if I had waited. I’m glad I didn’t. I feel very proud of myself and empowered because I made a choice that was the right one for me at that time.