A house appreciates: a horse depreciates.
I just spent $1,500.00 on hay!
At your age, and single, I’d have gone for the horse in a heartbeat. Forget the house. Apartments are a lot less trouble. You don’t have to pay for upkeep and repairs, you don’t have to keep up the yard, replace the furnace or the roof, if you have terrible neighbors it’s easier to move from an apartment than sell a house.
If I were a millionaire and knew some very good home repairmen, I might go for the house, but then I wouldn’t have to choose between a house and a horse, I could have both.
Of course with a horse you have to pay for upkeep and “repairs” too. But if things don’t well with a horse it might be easier to sell a horse than a house. Except that when you buy a horse you are taking on a living creature and you can’t just unload it when you get tired of it the way you could a house.
No way, at your age and single, would I have taken on the responsibilities of a house if I wanted a horse. Unless I could have afforded both with no financial hardship. You’re only young once. While you’re young enough, and have income enough, to seriously enjoying riding, a horse is much more attractive IMO.
But I can’t tell you what to do.
It depends on the market, the horse and the house
I’m reading many dated assumptions about the intrinsic value and appreciation of real estate in several of the posts above. 
The best decision depends on a) the market you are in; b) which house, and c) which horse.
Once upon a time, real estate always appreciated, and you almost couldn’t make a mistake. Everything went up, everywhere. Those days are long, long gone.
The real decision is buying vs renting. In some markets you will be far, far better off to rent. In others, buying makes more sense … depending on which property, in which neighborhood.
BTW, rentals are becoming more and more expensive in many markets. Frankly your best option may be to buy a rental in the high-end area and live in another, less-expensive rental (only if you can buy into a lot of equity, though).
Can you fix up a fixer-upper on your own?
However, regardless of appreciation possibilities, the horse is the much, much more risky investment. Things happen to horses that are expensive. Something about setting your money on fire?
If you want to invest in a horse, only do it if you invest in 2 horses. One to go lame and one to train up and sell. :yes:
Not kidding on that. With the horse you need to spread your risk. Or is it double it? It would be a sad turn of events if you ended up pasture-boarding 2 chronically infirm horses … young ones …
In any case, especially now, any prospective investment in real estate or horses is only likely to pay off if you can find one to buy below market, and then improve it to top-of-market price in a fairly short amount of time. If you aren’t on that path, realistically you should not count on making money after carrying costs on either one. Below market usually means there is something wrong with it that the buyer needs to fix to get it up to market price. Horse or house.
Think creatively about your finances. You can do both and prosper - but not through conventional answers.
[QUOTE=OverandOnward;8263565]
I’m reading many dated assumptions about the intrinsic value and appreciation of real estate in several of the posts above.
The best decision depends on a) the market you are in; b) which house, and c) which horse.
Once upon a time, real estate always appreciated, and you almost couldn’t make a mistake. Everything went up, everywhere. Those days are long, long gone.
The real decision is buying vs renting. In some markets you will be far, far better off to rent. In others, buying makes more sense … depending on which property, in which neighborhood.
BTW, rentals are becoming more and more expensive in many markets. Frankly your best option may be to buy a rental in the high-end area and live in another, less-expensive rental (only if you can buy into a lot of equity, though).
Can you fix up a fixer-upper on your own?
However, regardless of appreciation possibilities, the horse is the much, much more risky investment. Things happen to horses that are expensive. Something about setting your money on fire?
If you want to invest in a horse, only do it if you invest in 2 horses. One to go lame and one to train up and sell. :yes:
Not kidding on that. With the horse you need to spread your risk. Or is it double it? It would be a sad turn of events if you ended up pasture-boarding 2 chronically infirm horses … young ones …
In any case, especially now, any prospective investment in real estate or horses is only likely to pay off if you can find one to buy below market, and then improve it to top-of-market price in a fairly short amount of time. If you aren’t on that path, realistically you should not count on making money after carrying costs on either one. Below market usually means there is something wrong with it that the buyer needs to fix to get it up to market price. Horse or house.
Think creatively about your finances. You can do both and prosper - but not through conventional answers. :)[/QUOTE]
Sure, but I thought the OP had said the numbers favor owning over renting, why the question?
Of course, if owning is not definitely better than renting, if the house in question needs much work, is in a questionable neighborhood, that may be going downhill, etc., that changes the picture.
If the picture is blurry, there is a third option.
Why not keep as you are doing and rent and lease that older horse?
Owning a horse, any horse, is a really long shot and a money pit for a very small chance at any profit at the end.
Not recommended as a way to make a profit, horses being generally a poor ROI way to gamble, worse than houses.
Another option is, save for a while longer, don’t stick your neck out and spend that money quite yet, but add to it some more.
Keep all your options open, see where you are later, in another year or a few more?
One reality of life, there will be another horse and another house prospects show up, they always do.
As your trainer herself said, she would buy him if she had not just bought another such project horse.
Waiting to have more money will give you time to keep weighing your possibilities, the old, “if in doubt, don’t”.
By the house. Much as I love them, horses are money pits, not investments.
This is an “apples and oranges” comparison.
Horses are luxury goods and should be considered that way. They also eat; never invest in anything that eats. Note that this doesn’t mean “don’t be cattle rancher or dairyman.” 
Houses, properly selected, will generally increase in value. Right now be wary because the housing market is “bifurcated” in lots of places. There is a shortage of “entry level” houses so they are seeing a value “spike.” Middle and upper level houses are more plentiful and not appreciating so rapidly.
Buy the house, but buy smart!
G.
Investing in a high dollar horse should be your decision alone, your trainer should be there to help with selecting it; they shouldn’t be horse shopping for you unless you have told them specifically you are wanting to buy a horse.
As far as the house, maybe a condo or townhome would be a better option. Free standing homes are nice but require maintenance and upkeep. Since you are young and single having a condo/townhome would mean the maintenance and repair would be taken care of by your HOA. As far as the horse, I’d look for cheaper options that you can still grow with. Make sure your trainer has your best interest in mind and not a vested interested in a horse.
It is more about your life and wishes than investment. Horses are rarely a good idea as an investment!
Is the idea of owning a house or condo appealing to you? Would you enjoy owning a home, decorating, etc.? Or is it only the financial issues? As was mentioned, you first need to be reasonably sure you are going to stay there 5-10 years. I am a fan of single-family houses and (as a single female) have enjoyed most of the work to maintain and found I can hire out the rest for reasonable costs. Others like the ease of a condo. If you go the condo route, be very careful of the rules, fees and assessments and make sure that renting out is allowed should you need/want to.
What do you need from a horse right now? Do you really want to buy a horse with “potential” and pay for the training? Or is that just tapping into some wishful thinking? Are you really headed for a high-level competitive career with this horse with all its costs? If that make you happy then go for it. For many of us, moderating our wishes to be more in sync with reality leads us to horses with less potential that we can afford and ride and enjoy at a level that makes sense for our life balance.
So I guess my advice is to think hard about what you (not your trainer) want now and in the future. Try to find a balance that works for you and your ambitions (horsey and financially) BTW, they are also two independent choices. So think about whether each choice is really what you should do regardless of the other choice!
[QUOTE=tangledweb;8263461]
Only you can decide if buying a horse or a house is the right lifestyle choice for you, but it sounds like you think you can make a profit on this horse. If that’s part of your decision making process, you need to put the cap back on the vodka, step back, take a cold shower, and think about how crazy that is as an idea when you sober up.
If you want to enjoy a horse and spend all your money on it, and live an otherwise fairly modest life compared to other people with the same paycheck, not many people here could sincerely criticise that.
If you want a horse to make a profit on after paying board, training, entry fees and whatever else, then you should take your savings to your nearest race track and bet the lot on the horse with the prettiest tail. Your odds of profiting are about the same and you get the good or bad news much more quickly.[/QUOTE]
LOL! The bolded part is probably one of the best lines I’ve ever read on COTH. But the entire statement is very true. Everyone knows how the saying goes- the way to make a small fortune in horses is to start with a large fortune.
As others have said, look realistically at the market in your area, but unless you terribly overpay for a particular house, the house is probably the better long-term investment. And let’s face it, what is the realistic ability that once you are paying board, training, lesson and showing fees etc. that you will be able to save enough money for a down payment again? It would certainly be much slower than without all of the associated costs. My vote would be to take lessons, lease or catch ride for a year or 2 after buying a house and then when you save up money again go buy a nice new horse. You’re only in your 20s; you have a long time left to invest in horses, set yourself up for financial success.
Owning a house is great, but it’s also a huge commitment for a very young person to make. A house is a drain on one’s time and resources, for sure, and the vagaries of the housing market make it far from a sure investment.
At your age, I’d go for the horse. Not because I think it’s a good investment (I don’t) but because you’ve plenty of time to settle down and chain yourself to piece of property.
I am widely considered to be sensible, responsible, and level-headed.
At your age, if you really want the horse, go buy the horse. But do not buy this horse as an investment. Do not factor any potential future profit into your decision-making process. If you want this horse for yourself, with a full understanding of the costs involved in owning it and you can afford all that, buy the horse. If you can accept the fact that, due to illness or injury, you could end up with a useless, worthless (in the monetary sense) pasture pet, then buy the horse.
If you really want a house, then buy the house. But, in today’s market, depending on where you live, you cannot count on any significant appreciation in value. I own a house right now in another state that is worth less than it was when I bought it 7 or 8 years ago. It’s in a great rental market, which is it’s only saving grace, but it’s also in a gradually changing neighborhood and will likely continue to diminish in value. And I’m probably going to have to put a new roof on it in the not too distant future.
When making this decision, make sure you really understand and have considered the true costs of home ownership. It’s way more than just the principal, interest, and escrow payment.
I guess the short version of what I’m trying to say is that “buy the house” is not really the default sensible answer, so don’t do it just because you think you should.
Yep.
And a horse can have a serious lameness tomorrow that forever limits its usefulness. Or colic.
Both horses and houses are huge money and time pits. :sadsmile:
But, a horse is more liquid than real estate. You can sell it, give it away, lease/free lease, etc. if your life or mind changes. Not so with a house and all its legal requirements to transfer ownership.
And, if you are financing the house, you are going to be paying nearly ALL interest on it for the first several years of ownership. If the value of the house doesn’t increase quickly (like in the real estate bubble in the 2000s) and you need or want to sell for whatever reason (relocation, marriage, job loss, etc.), you will have essentially thrown away a lot of $$ because you won’t have much equity in it yet. Look closely at the amortization schedule in the price range of house you are considering.
It just feels like you are kind of young to be tied down already to something like real estate that has rather substantial financial implications if you want to make a change or follow your heart somewhere else anytime soonish. (Yes, you could rent out the house, but of course landlording comes with its own set of complications.)
A horse seems like more fun, more portable, and - although I can’t believe I’m saying this - less financially risky.
Investment horse is an oxymoron. If you buy one, don’t expect it will have ANY resale value.
I’ve owned homes since I was 24. Started small (2BR condo) and moved along over time. Housing market are fluid, but I always made money on my property and I had a place to live while I owed it. I did well enough to afford a farm and now have it filled with horses, who are not assets but fun to have around.
Horses are not an investment. Buy the house.
OF COURSE your heart says you want the horse - or you would not be here, and spoken like a true horsewoman.
But houses get to be paid off eventually, especially if you double up payments
when you can and low interest rates are a boon.
Houses are long term investments, the markets go up and down, so you need a long term goal. Eventually they pay off. I wold be wary of a fixer if you are
single and not too handy. Stay working and have some fun as well.
But these days I tell my kids the trick is “mortgage helper”. My daughter is a home-owner at a young age, and going to school, but she has a plain little house, by no means her dream house, has put in a beautiful 2-bedroom suite in the ground floor (not below grade) and has rented the upstairs. The rent pays the mortgage, she pays the utilities and taxes and lives at a cost much below if she rented a suite elsewhere and paid someone else’s mortgage.
She is in a University area and there is rental demand and potential for appreciation.
That is the way we think, anyway. Honestly, for some, being renters is their preference…no lawns, maintenance, work…or investment.
I don’t know that a horse is more “liquid” than real estate - especially in the way that you describe, dkcbr. Liquid assets can be quickly converted into cash without losing significant value. Giving away is pretty much the opposite of that. It sounds like you’re thinking that horses are more easily “disposed of” than a house…
As far as paying all interest in the first several years - generally speaking, that’s true, but if you have a mortgage that’s well within your means, you can make additional payments to the principal of the loan to help you move towards full ownership faster.
I’ve got both (the house and the horse) - in my situation, house was a good investment and gives me a lot of financial stability, horse is a luxury item - she’s definitely NOT an investment, but I like having her around.
I do agree with you that a horse seems like more fun and portability, though. (But even though I can’t move my house easily, I do really enjoy it, and being able to say “it’s MINE, all MINE!” while laughing maniacally is pretty entertaining…)
Oh, and what if you buy the horse, he doesn’t go lame or is otherwise incapacitated, comes along really well, and he ends up being your “once in a lifetime” horse - could you sell him on? Personally, I don’t think I could do that - I get attached, so the “investment potential” of a horse is pretty much a foreign concept to me. YMMV.
OF COURSE your heart says you want the horse - or you would not be here, and spoken like a true horsewoman.
But houses get to be paid off eventually, especially if you double up payments
when you can and low interest rates are a boon.
Houses are long term investments, the markets go up and down, so you need a long term goal. Eventually they pay off. I wold be wary of a fixer if you are
single and not too handy. Stay working and have some fun as well.
But these days I tell my kids the trick is “mortgage helper”. My daughter is a home-owner at a young age, and going to school, but she has a plain little house, by no means her dream house, has put in a beautiful 2-bedroom suite in the ground floor (not below grade) and has rented the upstairs. The rent pays the mortgage, she pays the utilities and taxes and lives at a cost much below if she rented a suite elsewhere and paid someone else’s mortgage.
She is in a University area and there is rental demand and potential for appreciation.
That is the way we think, anyway. Honestly, for some, being renters is their preference…no lawns, maintenance, work…or investment.
Oops - how did that happen^^^?Double post.
[QUOTE=Foxtrot’s;8263873]
Oops - how did that happen^^^?Double post.[/QUOTE]
I don’t know how that happened, did that to me yesterday?
You can click edit, then delete, the other delete tab and it will goo poof!
Having been in the horse business all my life, horses are an investment for me, but the key is “horses”, you spread your risk over several and several years and markets.
Many don’t make money, some make a little, some a lot if you are lucky and do it all right and those pay for everyone else.
Now, horses as a service industry, caring for and training for others, that is a valid, serious business.
I agree with whoever said if you buy the horse, let it be with the idea of enjoying and learning from, not that he may make money, because the odds are against that.
“One” horse is not a very good investment.
