If you are sick of paying off your landlord's mortgage, buying a house with your partner can seem like a good decision. But before you make the jump, there are a raft of financial and relationship questions you should consider.
Here are some signs that you may be ready to buy a home with your partner.
Both of you are financially capable
Discussing money can be awkward but this is crucial when buying a house together. Both of you need to be confident that you’re financially capable of taking on a mortgage. This is a long-term investment that could last 30 years.
Have you considered the additional costs aside from the mortgage repayments such as legal fees, stamp duty, lender’s mortgage insurance, building and pest inspections, and moving costs? Factoring in all the estimated costs is important so you know how you will split all the bills and payments.
You have a pre-approved home loan
It's a waste of time to go house hunting without getting a home loan pre-approved by a lender. This will tell you what you can afford to spend.
You agree on ownership structure
Buying a house or investment property alone is different from buying with someone. You need to think about what kind of ownership you want. Will you be joint tenants or tenants in common? This is important so you know what will happen to the property if one partner dies or the relationship ends.
Both of you have stable jobs
Changing jobs can greatly impact you financially. If one of you lost their job or made a major career change, the other one would be responsible for all the payments including the mortgage and the household expenses. So it’s safer to avoid buying a house until both of you are happy and stable with your careers.
You’re very compatible with each other
Will this be the first time you’re living together in one house? Sharing one space can put unexpected strain on the relationship. Keep in mind that investing in a property is a much bigger responsibility than renting an apartment together.
You agree on what you want
It will be a challenge if your partner wants to live in the city, but you prefer to move to the suburbs. The two of you need to agree on what you want in a property including the location, amenities, the number of bedroom and bathrooms, the design and the layout of the home. You will need to talk it over and agree.
Buying a house with your partner works best when there is a lot of commitment, communication, and compromise. Don’t forget to speak with a lawyer and put your agreement into writing so you know each other’s rights and responsibilities.