Houses Before Spouses: Should You Buy a Home Before Getting Married?
While many people get married before they buy homes, there are a lot of benefits to home ownership that single people can take advantage of as well.
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With a tough housing market, however, many younger people may not be able to make this a reality — even if it has good long-term benefits.
Experts explain whether you should consider buying a home before you marry and some ways to go about doing this to make it more affordable.
Take Advantage of Appreciation
Buying a home early allows individuals to capitalize on market appreciations, ultimately increasing their equity and investment portfolio before entering into marital financial obligations, according to Ryan Norman, founder of Norman Builders.
“For instance,” he said, “one of my clients was able to take advantage of a buyer-friendly market, securing a property which has appreciated significantly in value over the past few years, boosting their financial stability independently of their marital status.”
Alex Coffman, co-owner of Teifke Real Estate, added, “This early investment can lead to significant financial gains in the long run, providing a robust financial footing as you enter into marriage.”
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Stability and Independence
In addition to financial benefits, Coffman pointed out that owning a home offers a sense of stability and independence that renting cannot match.
“It allows you to create a personalized space that reflects your individual style, without the constraints often faced when renting.”
Potential Rental Income
If you decide to move after marriage but retain ownership of your property, it can serve as a valuable source of passive income through renting as well, Coffman pointed out. And if you have an extra room or a duplex, you may be able to live in your home and rent it out at the same time, for significant financial benefit.
Credit Improvement
Having a strong credit score before you get married can benefit you both down the road. So, Coffman suggested, “Consistently making mortgage payments on time can improve your credit score, providing broader financial benefits and better rates on future loans, including potentially a larger mortgage if moving to a new home after marriage.”
Consider Co-Buying
While you might not be buying a home with a spouse yet, joint ownership of real estate — whether that is among family members, friends, investors or others — can provide certain benefits, including shared property expenses, the possible avoidance of probate and the sharing of risks/liabilities, according to Patrick MacQueen, founding attorney of Medalist Legal, a real estate law firm.
But Take Precautions
“In my professional work overseeing construction and renovations, I’ve seen pairs successfully navigate this arrangement by setting clear, legally binding agreements that outline each person’s stake and responsibilities in the property,” MacQueen said.
These precautions are critical to prevent conflicts and ensure that the property can be smoothly sold or that equity can be divided when necessary.
That’s because co-ownership also can create opportunities for disagreement, MacQueen said.
“Case in point: A boyfriend and girlfriend co-own a home, decide to break up and cannot agree on what to do with their home or how the proceeds of a sale should be divided,” MacQueen said. “When this level of disagreement occurs, the law permits the parties to partition (i.e., split) the property and, because a literal splitting in half of the property or physical division cannot occur, the couple must sell the entire property through a partition lawsuit.”
Seek Professional Support
Consider meeting with a real estate attorney before co-purchasing a property (or very shortly after purchasing the property), MacQueen said, and consider having a written agreement between the co-owners, which should include a buyout and partition clause.
Keep Good Records
“Be sure to keep detailed records of all expenditures — e.g., mortgage payments, utilities, maintenance items, improvements, etc.,” MacQueen said. “To the extent possible, ensure that expenses benefitting the co-owners are invoiced and billed to all owners.”
Keep an inventory of items of personal property and who owns these items.
Think About Future Living Possibilities
From a builder’s perspective, Norman said it’s also important to consider how the home might need to adapt to changing life stages.
“For instance,” he said, “I worked with two friends who bought a house together and later converted part of it into separate living units, providing personal space when one of them got married.”
He said this kind of flexibility in planning can substantially enhance the livability and value of a home, making it a wise long-term investment whether you’re single, planning to marry or co-owning with a friend.
Other Considerations
Coffman said you want to take into consideration some key issues when buying, no matter the conditions, such as location (how close it is to your job, schools, and other amenities); an affordable price so you’re confident you can make monthly mortgage payments, and the age of property, as older homes may require more upkeep or even need renovations.
You also might want to look into first-time homebuyer programs in your county or state and even federal programs.
While buying your first home as a single person can be a financial stretch, so long as you can guarantee paying your mortgage, it’s an investment that’s likely to pay off, whether you decide to marry or not.
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This article originally appeared on GOBankingRates.com: Houses Before Spouses: Should You Buy a Home Before Getting Married?
