Buying a home with your significant other
An important step
There are many things to consider when you are buying a home with your significant other. When chosen correctly, your new property can improve your living standard in numerous ways. You can choose a home that suits your needs better than the one in which you currently live, and you are simultaneously making a prudent financial decision. However, it is one of the most significant decisions you will ever make, especially if you are making a new step in your relationship.
For these reasons, we have noted down a few things to consider when you are looking at property listings with your partner, be it a boyfriend, girlfriend, fiancee, or life companion.
What do you need to pay attention to when buying a home with your significant other?
Naturally, some aspects of this decision are more urgent, and it would be best if you had a clear picture of what your particular situation is like before venturing into searching and buying property. So, no need to rush. Make a plan, take small steps, inform yourself about your financial and administrative status, and act accordingly. Let's take a look at some things you need to pay attention to:
1. Who will apply for the loan?
So, the first step is to schedule a meeting with your financial advisor to see whether you or your partner have a better credit balance. At first, it may seem as if it does not matter who takes out the loan, but in fact, it does. For example, if you have a stable job, but you did not pay off your student loans, then you might have some issues with taking out the mortgage in your name. Of course, this does not mean that you are not eligible for the loan - a good financial consultant will advise you about the best course of action for your particular situation.
2. Who will claim property ownership?
You can split the ownership 50-50, or 60-40, or in any way you deem convenient. However, this is also a tricky question which you have to discuss with your partner in detail. Make sure that you consult your partner about what you think is best so that there aren't any hard feelings in case the relationship ends.
Many couples decide that it is best if they split the costs from the outset.
3. Will you split the costs evenly or in percentage?
If you take out the loan, you will have to return the money in installments for quite some time. Handling this financial burden should be carefully planned even before you buy the property. You need to avoid getting yourself in a difficult financial situation down the road.
4. How will you move your new home?
This is also an important decision that you have to make in advance because buying a home also entails long preparations for moving your personal belongings. For instance, if you have decided to do some major remodeling in your new house, the best place for your belongings could be a nearby self-storage unit where you can temporarily move your clunky wardrobe or couch.
5. What will you do if you split with your partner?
Although discussing what you will do if you happen to get a divorce or break up is extremely uncomfortable, you have to be on the same page. Of course, this topic is especially unpleasant if you are both happy-go-lucky because you are moving into a new home together.
Keep in mind that everything will be easier once you break the ice and start talking about how you will split the ownership or whether you are even going to do that. Ultimately, this conversation will strengthen your relationship and improve communication, so grab a glass of wine and talk to your partner.
Postponing the big conversation about ownership of your new home might backfire in the long run. So, turn off your TV and talk it through with your significant other.
Financial benefits of buying a home with your significant other
Now that you have a basic idea about which things to consider before buying your first joint property, you may feel overwhelmed or even skeptical about doing so. So, to allow you to assess your situation, both realistically and optimistically, we will discuss the benefits of making this big step.
Buying your first property with your significant other might be a natural segue into tying the knot.
Firstly, moving in with your significant other might be the best decision you can make for your relationship. And you may not even have to decide who the owner is - many couples are opting for a balanced approach in which they create a one whole from two homes. For example, if you or your partner already own an apartment or a house, you might consider buying property adjacent to your current home. In this way, both of you can be owners by expanding one of your existing properties.
Finally, buying a home with your significant other might be an interlude to a new chapter in your life. It is easier to get your mortgage granted when you are married because you are then observed as a unit and not as individuals. Accordingly, this decision is a huge step both financially and emotionally, so consider the factors we have mentioned every step of the way.
