In the last couple of years more and more couples decide to buy a house before they get married. There are different opinions on whether this is a wise decision. For instance, some couples do it because they want to save money on rent which is understandable. Others are looking a bit further and they decide to buy a house before the marriage with the purpose of building equity sooner.
Since there are different pros and cons when it comes to purchasing a house before marriage, we decided to list them, so couples can take all of them into account and make the decision that it is best for them. If you are discussing this topic with your partner, you can read more about how to get credit for your dream house in the most convenient and affordable way.
Advantages of buying a house before marriage
1. Couples can save rent money
As we mentioned, this is one of the greatest and most common reasons to buy a house before marriage. Believe it or not, you can really save a lot of money on rent. By paying rent you are wasting money every month instead of putting that money towards your home payment. For instance, if you are paying rent $1200 every month, you are wasting $14,400 over a year which is a huge amount of money that could be used in a more clever way which is reducing payment on your house.
Therefore, buying a home before marriage is a good way to save money in the long run, especially for couples that are living in areas with high prices of rent. However, you should remember that you are going to need to pay other things such as taxes, utilities, insurance, etc.
2. The couple can build equity sooner
We are going to look at this as a high advantage of buying a house before marriage. Equity stands for the portion of the home’s value that the couple is owning. It increases as the home couple pay down the mortgage. Why equity is important for the individual? Well, it provides financial security. Also, in the case a couple decides to sell the home, they are going to keep the equity that they have built up.
This means that the person will get the money that he or she invested in the home. In the case of renting, a couple will not get the possibility to build this type of equity. Because of this, more and more couples are deciding to buy a house even though they are not married. This option truly provides a solid financial foundation.
3. A couple can enjoy a sense of independence
One more reason why can be great to purchase the house before getting married is that the couple can maintain their independence. Let’s explain this further. Well, in the case that you and your love partner are not really ready to fully commit to each other for some reason, you need to be honest with each other when it comes to whether it is the right decision to purchase a home together.
However, if you are ready to buy a house even though you are not married, this means that you two are independent people that are ready to take on the financial responsibility that comes with owning a home. It is important that both of you are on the same page regarding this decision.
When a couple is married, they need to share all of the financial decisions together and it is much easier. However, when you are married you need to compromise on so many things. That is why purchasing a house before marriage will give both partners a sense of independence that they can not get otherwise.
4. A couple will split utilities with dual income
In the case that both partners are working and have incomes, they both can contribute when it comes to the monthly mortgage payment. This comes with two beneficial sides, you can ensure that the housing costs are affordable for you two, and at the same time, you will be able to build equity faster. However, it is important to remember that you two are also going to split other household expenses.
That is why it is important to take into consideration the budget that a couple has together and decide whether or not to buy a house before marriage. If the couple sees that they can not handle the additional expenses, it is better for them to wait to buy a house after they are married.
It is quite relevant to take into account that the financial situation can also change over time, which means that you need to take a good look at the budget possibilities. In this case, both of the partners are working and they are able to handle all additional expenses, there is no reason why they should not buy a house together.
Disadvantages of purchasing a home before getting married
1. Time commitment
One of the common disadvantages of purchasing a house before marriage is the fact that this represents a big-time commitment. Therefore, if the couple is not ready to fully take commitment, it is not a good idea to buy a house together. This means that partners should primarily trust each other and be honest. Additionally, they need to talk about the long-term goals and ensure that those goals can support the process of purchasing the house.
2. Financial entanglement
When the partners are not careful and take the whole process of purchasing the house like it is not something important they could end up taking more debts than they can handle. This can have a very negative impact on the relationship. Because of that, it is quite important to talk about financials before getting a house and develop a plan that will work for both partners. For instance, some people are not ready to share financials before they get into marriage. In the end, everything depends on how prepared the couple is for this type of decision.