Single and Buying a Home? What you need to know before doing so....
While it’s true that more money buys more of a home, and two incomes are usually better than one in that regard, it’s also true that many single people CAN in fact afford to take on the expense of home ownership on their own. In fact, many people who entered the workforce during the recession are averse to investing in the stock market, preferring real estate instead.
Interest rates in recent years brought affordability to all-time highs, making it easier for individuals to purchase a home. I personally have seen an increased number of individuals buying homes on their own, and some have even moved up since their first property ON THEIR OWN!
It pays to take advantage of a good deal when it comes along. We don’t have to be rocket scientists – or wealthy – to see that the market plummeted in 2008 and have bounced right back up, and mortgage interest rates are rising. Rather than miss out on a good opportunity to buy before prices and rates go up again, some couples are choosing to take the home ownership plunge before tying the knot. That being said, consider contingencies. You might not think there’s any chance of splitting up, but if you’re buying a home with a partner you’re not married to, at least consider the possibility that things won’t work out. You don’t have to become a huge believer in prenups to at least address both parties’ interests with regard to what’s probably the single largest purchase either of you will make for the foreseeable future. Create a legal agreement that specifies ownership details, who pays what expenses (and how much), and what your preferred plan of action would be in case of a split. A lawyer can walk you through this so that each side understands the benefits of this, and appreciates the protection.