To get a partner, you must have gone through various stages. The first stages probably included many dates, and when you realized that this could be something big, you made it official and decided to move in together. That was a great achievement.
However, there are more important decisions that you need to make together, like buying a house. For some couples, this project may seem impossible because they have different tastes and preferences. But if you agree to do it together, you’ll reap many benefits like improving your borrowing power when applying for a home loan.
If you want to buy a home together quickly, both of you can borrow a mortgage that’s enough to build your dream house. However, before doing this, you need to make some choices and contact a land for sale officer. This article gives you some tips for buying land with your partner.
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Plan On How You’ll Share Costs
Jointly owning a property is associated with many costs. That’s why it’s vital to have some ground rules of how you’ll share the expenses. To do this, you need to have a budget and split every expense from the mortgage application fees, repairs, and maintenance to stamp duty fees. That’ll enable both of you to be responsible.
Doing this on your own can be a little bit difficult. That’s why you may want to hire an accountant who can budget for you based on your cash flow and advise you on managing your finances. Some accountants may even recommend opening a joint bank account where you’ll deposit funds for paying property and mortgage expenses.
Once the account is up, you and your partner can deposit some amount in the account weekly, monthly, or yearly. If you choose to go for a loan linked with an offset account, you should know who’ll manage this account and repay the additional loan amounts.
Understand Your Future Plans And Needs
Before buying or building a house, you need to sit down and select a design. However, although you may like a specific design today, as your family grows and society changes, you may want to make some other adjustments. That may include adding additional indoor space or extending some rooms.
You may also find that having a house near the beach or other amenities is more desirable in the future than it was when you were building your dream home. Therefore, you need to buy or build a house that you can live in and rent out when you move to find a new property. But before doing that, it would be best if you understood the risks and stresses associated with putting the house on the market, paying stamp duties, paying agent fees, and the removal costs involved.
You may also have to take another loan if you require more money for maintenance and repairs. Therefore, based on where you want to be in the future, ensure that you are careful about your house’s budget and where you buy land. It may also be essential to have good credit ratings and service your debts.
Before borrowing money together, understand how much each one of you can borrow, confirm whether both of you have a good credit history, and ensure that you have some job security. If you decide to build a rental unit, you need to determine if you’ll share the losses and profits equally and whether you’ll be jointly owning the property. Developers and real estate lawyers can help you with valuable advice on cost-sharing and paying stamp duty, insurance, and legal costs.
Plan On Saving For A Deposit
A deposit is a great starting point of property ownership. However, saving for isn’t easy, especially if you have a family you’re fending for. However, through some techniques, both of you can manage to save for a deposit.
The first way you can do this is by minimizing your debt. That’ll require you to review your spending habits and finances. Your credit files will help you to know any obligations that you have against other lenders. That way, you’ll know the debts to consolidate and the ones to eliminate.
Once you’ve understood your credit files’ information, you should calculate the monthly expenses you use on transport, food, and utility and find ways of cutting them. For example, if you’ve been using $200 on petrol every week, taking public transport to work may help you save considerably. You may also have to forgo some memberships and direct the additional funds to your deposit account. Working with an accountant will help you know the amount of money you can deposit in your joint account each month.
The second way of saving for a deposit is having a target. Once both of you have set a budget and found ways of lowering your current expenses, it’s essential to determine how you want to save for the deposit. There’s no formula for setting a target, though most first time homebuyers prefer saving 20% of the home’s purchase price to avoid paying the LMI (Lender’s Mortgage Insurance).
Apart from having a target, you can come up with creative ways of making extra cash. Utilizing your skills and talents can help you gain money quickly. For example, if you’re a photographer or a graphic designer, you could also do freelance jobs in your free time. Renting spare rooms in your current property or driving and Uber are also other great ways of making more money.
Have A Strategy For Finding Your New Home
You can select a home in many ways. The first method is to request financial planners or buying agents to help you find one. These individuals will tell you the costs you’ll pay, review your budget, and evaluate the offers and trends on the market. Alternatively, you can research the market on your own, though this requires you to have a wide knowledge of the property market.
If you’re working together with your partner, buying your dream house can be so simple. However, this requires you to think alike and have the same goals and purposes. These tips can help you make your home purchase journey successful.