It can be very exciting when you buy a property.  Some people go solo whilst others go in with a partner, other family members or as part of a syndicate.

When you purchase a house by yourself, you’re the only one making all the decisions.  When love is thrown into the mix, purchasing a property can be a whole different ball game.

Before you jump straight in, sit back and take the time to have an open and honest discussion about each others’ expectations, goals, hopes, dreams, compromises and ‘what ifs’.  Sometimes these conversations can be difficult, but if you don’t have them now, things can go seriously wrong down the track.

Let’s take a look at some Do’s and Don’ts when it comes to buying a house with the love of your life.

DO seek professional advice.   Whilst it’s all sweet and dandy right now, life happens, and struggles can inevitably impact on the relationship’s dynamics.  Ensure you both have all of your financials out on the table, including any debts.   Speak to your financial planner and/or accountant about what you can both reasonably afford.   Most importantly, seeking counsel and help from your lawyer can ensure any future exit is a smooth one.  A lawyer can offer ways to structure loans and ownership, and write up contractual agreements specific to your particular partnership requirements.

DO consider a ‘Tenants in Common’ Agreement.  You’ll need to discuss this with your lawyer.  A ‘Tenants in Common’ Agreement allows for couples who contribute differently and wish this to be reflected in their ownership.  For example, partners often contribute different deposit amounts or one buys the furniture whilst the other one may have a large debt.   If you wish for everything to be split evenly, you can be ‘Joint Tenants’.

DO protect your loan.   Home loan insurance or income protection insurance are often pre-requisites for people applying for a loan.  However, an important consideration when buying a house with your partner, is to ensure you are personally protected in the event that your partner defaults on a loan payment.   Ask your lawyer about a Binding Financial Agreement to protect the loan, the property and your future.

DON’T make impulsive and emotional decisions.  Lusting after something you can’t afford can instigate a dangerous “I’ve got to have it” attitude which can ultimately cause you to stretch beyond your means, hurting you, your relationship and your bank account.  Before you start house hunting, be realistic about what you can afford, and tailor your search to the low end of your price range.  Remember, if you spend an extra $10,000 to buy a home, you’ll need to pay interest on that which can blow out your entire budget.

DON’T combine all of your finances.   Have a frank discussion about sharing bank accounts.   Whilst joint accounts make it easier to see where money is going and pay expenses such as mortgage repayments and bills, having all of your money in a joint account can be risky, especially if your partner has a tendency to be a bit extravagant.  It can also give you a sense of being out of control.  Each couple is different but to err on the side of caution, perhaps choose to remain independent by having your own transaction accounts in which your wages go into and then have a set amount transferred immediately into the joint account to cover the household budget.

DON’T stress.  Whilst buying a property with your partner is exciting, it can also be stressful.  Having to compromise is a part of being in a relationship.  Talking things over in a calm manner at the outset and strategising in an open, proactive and positive way, will de-stigmatise the topic of money and encourage action.  Listening, supporting and reassuring each other will only enrich and fortify your relationship, making it easier for you both to handle any stressors as they present themselves.

Buying a house with your partner?   At bytherules, we make the conveyancing for your home incredibly easy.  Request a quote using our 10-second quote, or call us on 1300 22 33 44.