What traditionally started with love, marriage, and then a home, has now taken a different turn. With the extension of the First-Time Home Buyer Tax Credit and low interest rates and cheaper home prices, "almost-serious", unmarried couples have decided to purchase a home together before planning a wedding and getting hitched. An interesting article, "Come Buy With Me and Be My Love"
in the NYTimes was published recently, discussing the increase in home purchases by unmarried couples.
Sure, renting an apartment may seem like a waste when living together, and the tax benefits are overwhelmingly in favor of a buyer. It's one thing be optimistic about the future of a relationship, but unfortunately things don't always go as planned. There are great risks involved in couples buying a home together. Take an example on Trulia's message board, Trulia Voices, where a couple split up after six months into buying a house. The article points at key things to consider before "taking the leap":
• How will the title to the property be held — joint tenants, tenants in common or living trust?
• Should both our names be on the mortgage?
• Should we enter into a legal “partnership agreement” before buying the property?
• How does domestic partner registration in our state affect property ownership?
• Should each of us keep records of our individual payments — and their proportion of the total — toward the mortgage, utilities, taxes and other expenses related to the property?
• If we broke up, how easily could the property be divided?
• If one of us died, how easily could the property be distributed?
But hey, don't let that stop you from seriously considering this option. Remember, the first time tax credit is extended until the end of April.
