Many people dream of homeownership. But a purchase becomes complicated when you and your partner aren’t of the same mind when it comes time to buy.
If you’re ready to buy, but your partner wants to keep renting, you’ll have to reach a compromise that’s best for both of you. To get there, make sure you consider every angle on whether to rent or buy.
Talk it out
Before you plan your future, sit down and discuss your reasons for wanting to buy a house, as well as your partner’s reasons for wanting to rent. Here are a few questions to spark the conversation:
- What are the perks of home ownership?
- What style and size of home do you want?
- Do you want to relocate or stay in the area?
- What benefits does your partner see in renting?
- What lifestyle changes may occur if you keep renting?
- Will a home purchase alter your lifestyle in a negative or positive way?
Knowing what your partner is thinking and feeling about the big decision benefits you both and can help you reach a compromise on this rent or buy dilemma.
What’s ahead?
Buying a home is a huge commitment. You may have to live in your first home for several years while you build up equity. If you buy before you’re ready and wind up needing to move, you may take a loss when you sell.
To know if you’re ready, consider what lies ahead for you and your partner in the next five to 10 years. For example, if your jobs are stable and you like your area, buying may make sense. However, if your partner may have to transfer for work in the near future, it may make more sense to remain a renter.
Future family planning will also help you decide. If you plan to have children soon, you’ll need a house with enough bedrooms to accommodate everyone. If you want to add pets to your family, you may need a home with a large backyard.
Are you ready?
Buying a house is a large financial commitment and your partner may be hesitating because of financial concerns. Knowing where you both stand financially can help you reach a compromise. Keep your finances in mind as you prepare the following information:
- Your credit histories – Order a copy of your credit reports and scores. These numbers are crucial when you apply for a mortgage.
- Your income – You’ll need stable income. If you’ve recently lost your job or your partner recently made a career switch, renting may make more sense.
- Your combined savings – To avoid private mortgage insurance, you’ll need to put at least 20 percent down on your home.
- Your budget – Homeownership comes with a host of repair and upkeep costs renters don’t typically face. To be prepared, you’ll both need a rock solid monthly budget.
To rent or buy, that is the question. But considering these tips before you decide can make a big difference in how the decision ends up.
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