If you’re in a same-sex relationship, but aren’t married, you probably assume that you should rent a house or apartment together. Many couples, regardless of their sexual orientation, do this because they don’t want to be tied to a mortgage together if they decide to split up. While same-sex marriage is legal now, some couples either don’t want to get married or are not ready to take that step. However, because interest rates on mortgages hit record lows in 2016 and are still quite reasonable, many people see it as a very good time to purchase a home. Should you do it, or should you continue to play it safe by renting luxury apartment homes instead?
The Advantages to Buying
If you’re looking to buy your first home, consider researching the best option for first time buyers to make sure you take the best course of action. Buying a home does mean that you can take advantage of a number of different tax breaks. You can deduct the amount you pay every year in interest to your mortgage from your income taxes. If you’re not married, though, you and your partner will have to file separately. This means you can’t claim the deduction together. You can split the deduction, or one of you can claim it all. It really depends on what your income is and where the deduction will do the most good. Then also remember that if you are buying a new-build that they often have huge amounts of defects so you really do need to perform a new-build snagging survey so that you can then ensure that those defects are taken care of before you buy. You also need a snagging survey checklist to list the areas that need to be fixed.
If one of you makes a good amount more than the other, it makes sense for that person to claim all of the deduction. It helps if that person’s name is first on the mortgage, but it’s not a requirement. If you plan on splitting the deduction, it can help if you’ve both paid the mortgage through two separate payments. When choosing to buy, make sure you have a search for homes for sale near me now that sends you new listing alerts.
Establish Joint Tenancy
If you are buying a home, you will need to establish that you have a joint tenancy with right of survivorship. This way, if one of you dies, the other person automatically becomes the sole owner of the property. If you aren’t both on the title and have it specified that you are living in the home as joint tenants, one partner may end up with nothing if the person whose name is on the title dies. A gay or lesbian real estate agent can provide you with additional information on how to establish joint tenancy.
The Downsides
Purchasing a house isn’t as easy as renting a home, of course. You do have to qualify for a mortgage, deal with property taxes, and handle all of the repairs yourself. However, you’re also building up equity in your property and have control over everything. That’s why many see homeownership, even if they’re not married, as a reward worth working towards.
