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What is the smartest way for an unmarried couple to go about buying a property together?
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Hi Jamie . Regardless of your marital status there are many ways to structure a home loan/s to suit . If you both want to be financially independent you could purchase a property together and have a loan each . (Eg a 50/50 split).or you could do 2 loans in both your names. There are different names for these type of setups inc property share loans.
A Broker will look at your full financial picture and recommend options that would suit you needs.
Let me know if I can assist further - I am literally down the road from you !
Great question Jamie,
With the new laws regarding defacto and acknowledged relationships there is not much point trying to trying to keep things separate once you move in together. In the event of a seperation the typical result in familt court is a simple 50/50 split of the communal assets. So that even if the loan is split it will make little difference.
One alternative is to put the property in a fixed trust with each person half. In the even of a seperation your asset is then the equity in your share.
This needs to be set up by a lawyer but the cost is not prohibitive and is well worth considering.
Hope this helps.
Awesome Lending Solutions
Hi Jamie. Good question and one that depends on your relationship to a fair degree. There are many though, that would say to err on the side of caution and have a clear legal agreement.
Fortunately the same person that does your conveyancing on the property purchase can assist with this. It could be as simple as a low cost caveat or a more detailed legal agreement depending on your needs.
The good news for you is it is easy and pretty cheap to set up at the start as opposed to potentially very expensive and complex if you dont.
I hope this helps.
You need to be aware of the differences in title and tenants in common vs joint tenants, doesn't matter so much on the loan side unless you want a seperate loan each 😄
It doesn't matter ... If you have been together for a while legally you fall into the same boat as the rest of the married people out there .
For you to be asking this question raises some issues about your trust with your partner.
If you have 100% trust them it doesn't matter what you do..
If you don't then I suggest you don't get involved financially at all
Hi Jamie
This is a great and relevant question for anyone who is looking to buy a property with another person, irrespective of whether they are a married, a life partner, friend or family.
No one knows your personal or partners financial position better than you.
It is always wise to ask questions and seek opinions so that you can understand all options and opportunities on how to buy a property that suits your own personal circumstances.
From a finance perspective there are options in having one account or you can split the loan accounts so you know what each individual is responsible for in terms of the loan amount for each account. Please remember that if either party falls short on their individual commitment then the other party will still be responsible for the full loan amount and repayments.
From the perspective of buying the property and how you set it up legally, I would suggest sitting down with a lawyer or conveyancer and go through the pros and cons of all options. Be sure to ask about options such as buying the property as joint tenants or tenants in common.
All the best
Paul