Asset creation often features high on the list of unmarried couples. If you too are planning to buy a house together but are yet in a dilemma, you should know a few things to make an informed decision.

A property gives you financial leverage, which you can work to your advantage to create more wealth. Compared to stock and shares, real estate is less volatile, which makes it a more stable option in today’s uncertain market. Property is easy to buy (with a little homework and planning) and control (since you can decide where, when and what to buy and sell). Apart from being an asset that’s easy to understand, you can even enjoy tax benefits to pay off your investments. In case you put it on rent, your tenants will help you to pay your mortgage.

With a well-chosen property, you can rest assured of capital growth over a few years, unlike stocks and share markets that can take unpredicted turns and wipe out your entire investment. With surging property values all over the world, real estate investment has emerged as a recession-proof investment option that can make you rich. Now that you know the benefits of real estate investment, here are a few tips to get started.

Start Planning Now
There isn’t any right time to invest. You have to start planning right now to benefit from property investment. However, you have to plan well to mitigate the risks and avoid pitfalls, thus benefiting from steady capital growth of your property over time. You should also be ready to hold onto your property or give it out to rent rather than expecting quick returns.
Planning to buy property with your partner needs a lot of consideration in terms of the budget, what kind of property to buy, the location that would fetch you good growth or returns on your investment, whether the property is for your own use or to be rented out, the tax implications, benefits that you can enjoy etc.
Since you may often find navigating the world of real estate a tough task, you can consult a realtor to get advice and guidance. Else, you can join online groups and forums to educate yourself on various aspects of property buying before you take the plunge. Whether you are doing it alone or have the guidance of a realtor, the basic steps involved in buying a property remain the same.

Plan Your Budget
Buying a property with your partner is a big investment decision that needs careful financial planning. At first, you should take stock of your finances by listing all your assets, along with your monthly income. You should also calculate your monthly expenses. The amount of cash you have in hand, along with your assets, will give you an idea of how much you can afford for the down payment of your chosen property. Even when you don’t have enough cash in your hand for the same, you can still get loan to buy a Property of your choice with your partner.
To get loans or mortgage easily, you should have a clean credit history and get all your paperwork ready. Try to pay your bills or loan repayments on time. In case you can’t, negotiate with your creditor for alternative arrangements. If you are unsure of your personal credit score, you can request access to it online.
In case you plan to buy a rental property, it’s best to put 20% down, repair the property and keep some amount in the reserve for vacancies and maintenance.

Buying the Right Property
The type of property you buy can be a decisive factor. If you want to buy a rental property for singles, a small unit that’s easy to maintain and costs less would be good. However, if you are looking to buy a property that will attract families or retirees, you have to look for bigger houses. You may even consider buying properties that appeal to a wider clientele – from singles to young professionals, families with/without kids, elders and retirees etc. Apart from the type of property, its location (proximity to school/college/office, markets, banks, entertainment/shopping/dining options etc.) too is important to consider.
Investing in property markets where high growth is expected would be good for your finances. If you are buying with an aim to rent the unit out, invest in regions where rental income is higher compared to the property value. Some market research can let you know such facts. However, don’t forget to check vacancy rates as higher rates mean lesser desirability among potential tenants. Checking how potential development work, if any, in the region can influence future property prices/rent can help you to plan well.

Choosing Type of Ownership
When choosing whose name to put on the house deed, joint ownership is the most common option among unmarried couples. However, if one partner is paying a majority of the share, the other can be named just the “renter”. Another important thing to decide is the kind of legal manner you want to take the title to your property, which would be reflected in the house deed. Joint tenancy is the most common option where couples decide to take an even 50/50 split. JTWROS (Joint Tenancy with Right of Survivorship) lets the surviving partner inherit the house in case the other dies.
If unequal contribution has been made towards buying the house, partners can take the house title as “tenants in common”. In such cases, the individuals must decide who will inherit their share of the house in the event of their death (and put it in their estate planning document/will) as the share of the deceased won’t go the partner automatically.

Put Your Agreement in Writing
Get a written document prepared by your real estate lawyer where your partnership or cohabitation agreement is clearly outlined along with the complete details of your purchase that mentions each partner’s percentage of the home’s equity. This is especially helpful if you have contributed different sums towards the property’s down payment or mortgage balance.

Conclusion
Buying a property with your partner is a great way to own a tangible asset and grow your financial portfolio while enjoying a significant degree of financial freedom. But you should understand what you are getting yourself into. After all, money issues and financial infidelity can ruin your relationship. Though love is blind, you shouldn’t take a real estate investment decision with your eyes closed. So, create a road map, take stock of your finances, plan your loan and mortgage, and get a legal agreement signed that spells clearly who owns what.

Once you have taken care of these, you can invest in real estate of your choice to enjoy financial security together with your partner.

Property Investment : Pro-Tip for Unmarried Couples by Melanie Smith | Realty Biz News