Buying a House Paves The Way To an Ideal Future
Buying your own home is a milestone whether you’re married or in a relationship. Buying a house together cements your lives and paves the way to an ideal future. While it sounds like an exaggeration, couples who plan on living their lives together take discussions on assets and property seriously.
Depending on who you ask, the definition of asset and investment varies when discussing real estate properties.
Modern-day financial advisors believe that when you buy property, you should ensure that it earns money in the long run. Meanwhile, real estate pundits say that properties only appreciate when the surrounding area or its neighborhood is close to commercial developments. And while these are all sound, sometimes couples only consider togetherness, privacy, and proximity to several conveniences when buying a property.
So when you and your significant other have decided to buy a house, you should look into certain things first.
This article outlines six things to consider before buying your first property with your partner.
6 Things To Ensure Before Buying a Property With Your Partner
Determine Your Priorities
Despite being partners, your individual needs and wants may still differ. After all, no couple is ever perfectly in sync with how they think. That said, determining your priorities and mindset on buying a home should take precedence. You and your partner should discuss your house preferences and ascertain which you could negotiate and compromise. This will make it easy for you to look for the house you both would appreciate.
Agree on Ownership
After clearing up your house preferences and meeting common ground, the next challenge is deciding the type of ownership you want your property to be. This is of greater significance if the partners have yet to marry or have settled for cohabitation. We give attention to these types of relationships in light of the legalities and arrangements associated with owning common assets and properties.
The couples are presented with two types of ownership they can choose from:
In this type of ownership, the property is jointly owned by one or more parties. If one passes away before the other, the other party gets the rights to the other one’s share. This is called the Right of Survivorship.
Tenancy in Common
This type of ownership arrangement means two or more parties may share varying portions of a property. Tenancy in Common allows the other party to buy out the other party’s share to gain full ownership. Tenancy in Common works for both residential and commercial properties.
Tenancy by Entirety
The Tenancy by Entirety arrangement refers to ownership where the couple is considered one. Like the Joint Tenancy, each party has the Right of Survivorship.
Understand the True Costs and Value of Your Prospective Property
The couple needs to understand the costs that come with buying a property. This does not only mean knowing the upfront costs of the property but also the other fees that succeed the purchase. Maintenance fees, taxes, mortgages, and the like are major considerations when deciding to buy a house.
Determine If You Need Financial Help
If you do not have the initial funds for payment, you and your partner may consider applying for loans. Buying a house is a major purchase. As this is the case, every bit of financial assistance might help.
You may also look into applying for a joint mortgage. However, your credit reports and credit will be accessible to future lenders. While this is completely normal, some people are not necessarily comfortable with sharing such information. Another apprehension is that some might feel discriminated against as their credit history determines if they would be approved to make a housing loan.
Have an Exit or Contingency Plan
The painful reality is some couples do not last long in their relationships. Because of this, when they buy a property together before marriage and the relationship falters, the legalities mess them up more. To safeguard the couples from further complications, they should set an exit strategy. This should be handled legally to avoid possible lawsuits and litigation. To serve this cause, filing the necessary documents should be the couple’s top priority.
File the Necessary Papers
In case of separation or death, the two parties have to get their paperwork straight. Living arrangements enable the couples to draw lines of responsibility that they have the option of binding legally.
Couples also need to get their will for their next of kin or beneficiary of their property upon death.
Living Together Means Being Responsible Together
If you and your better half are planning on buying a house together, you have to prepare beyond the immediate costs. Apart from making the appropriate legal arrangements, making your living conditions work wholly depends on your relationship. If things go smoothly between you and your partner, the rest of the processes will fall smoothly into place.