Buying a House but in Joint Names?

• 

  rewstar on 08/03/2015 - 16:19

  +1

  You could buy the house as Tenancy in Common and then you can choose a % of the property you own.

  Ie If the house is worth $500000.

  You put in $100000 meaning you own 1/5th (20%) of the property, your boyfriend will own 4/5th (80%) of the property.

  This way your boyfriend will be able to get a loan only in his name, but he will also need his own deposit to get the loan in the first place.
  You won't need to be on the loan as you have already paid your share of the property off in full.

  Hope this helps

  • 

    [Deactivated] on 08/03/2015 - 18:06

    Thankyou Rewstar. Appreciate the info and yes certainly helpful :)

    Samantha

• 

  lansalot on 08/03/2015 - 17:09

  +2

  Wow, tough situation without a ring on the finger!

  I think in this situation you have to look at what you both bring to the table.

  You have the ~$100k deposit, but no income.
  He has the ~$75 p/a income but no deposit.

  In order to buy a property you need both, so the only way to achieve this is to do it together.

  There are a few scenarios of how this can be done.

  1. Silent Investor
     You can put your $90-100k into a term deposit account that is used as equity against a loan. Until the loan is refinanced to free up the equity created by this account, this money can't be accessed.
     e.g. Your partner buys a house for $450,000, and needs a $90k deposit so that his borrowing is less than the 80% LMR. You provide him an assurance of $90k in an account that is used to offset his total borrowing and provide a virtual 20% deposit. He'd still need to borrow $450,000, meaning that he'd need to meet the lending criteria for the full amount, however his loan would be considered to have $90,000 paid in advance. Your risk here is that if for some reason he defaults, and the house is repossessed, it's your money that is at risk.
     PLUS
     As a single applicant, with $70k income he should be able to borrow about $460k.
     MINUS
     At the end of the day, you own nothing.

  2. Joint loans and tennancy.
     In order to meet lending criteria you provide the deposit and your partner provides the income. This is done as rewstar explains, and you can agree to the % amounts of the house you own. The problem here is that at the end of the day, the bank doesn't care what those %'s are and will consider you joint applicants, holding you both equally liable for the home loan repayments. As you are bringing a fair sized deposit to the table I'd insist on a 50-50 split of the property. Until you have shared finances I'd also look into some sort of an agreement as to the liabilities. Essentially you are borrowing $110,000 and your partner is borrowing $210,000 to purchase the property. Your liability for the repayments, and an agreement of how the asset will be split upon sale should be formalised.
     PLUS
     You get to own some house for your money.
     MINUS
     The lending amount will be less, about $320,000 as joint applicants, plus your $90-100k deposit, so in this example only about $420,000 vs $460,000 for your partner on his own.

  3. Wait it out, what's the rush! You have a nice sized deposit for yourself and once you have the income you can, and will, buy a house on your own.

  • 

    [Deactivated] on 08/03/2015 - 18:17

    4.Ask for that "ring on the finger" :b Personally, I would go with option 2.

  • 

    [Deactivated] on 08/03/2015 - 19:46

    +2

    Thankyou, really appreciate the time you have taken to provide the options.. We are getting married, been together for 9 years (including high school)..

    May consider waiting at this point.

• 

  [Deactivated] on 08/03/2015 - 18:20

  -2

  Where the hell are you going to buy a house for $500k?

  • 

    momov3 on 09/03/2015 - 03:50

    +2

    Melbourne - can still find decent suburbs with prices for free standing houses with good lot of land for $400,000+ - about 40 minutes drive from city centre, though irrelevent if you don't need to drive into city.

    • 

      [Deactivated] on 09/03/2015 - 08:43

      -2

      Well I live in melbourne and I'm struggling to find a 2 bedroom house in a decent suburb for less than a million bucks. I guess it all depends on your definition of decent.

      • 

        momov3 on 09/03/2015 - 17:16

        +1

        You are setting your standards way way high. Areas like Highett, Mentone Cheltenhem, where the great private schools are (I'm assuming you may want to be near good public and private schools), access to train stations - they are still at 600 -800K, and they are 3 bedroom free standing houses on good acreage. You have to look away from the eastern suburbs, those have gone really high, due to Asian influx and them being able to afford the highest prices. And no, I am not being racist here, it's the truth. I can name you other suburbs south east Bentleigh etc…they are still below the $1m mark. But don't go McKinnon the suburb right next door, it's near the reputable public school and all the Chinese nationals want to put their kids in there - for free. So they've bought up the area and bid the prices really high. Prices have soared to $1.3m - crappy houses with absolutely no renovation ever done to them for 50 yrs, are selling for no less. Just sold my ma's house there :) :) :)

      • 

        [Deactivated] on 09/03/2015 - 17:47

        -3

        @momov3: I don't think im setting my standards too high, I'm not complaining about the price and I'm happy to pay it. I wouldn't want to move to the outer suburbs like Highett, Mentone or Cheltenham.

• 

  RockyRaccoon on 08/03/2015 - 18:51

  +1

  Living with your partner for 2 years

  This can mean its a defacto relationship and as such 50:50 rules apply

  just go here

  http://www.legalaid.nsw.gov.au/publications/factsheets-and-r…

  The start of this says

  All de facto couples have the same rights as married couples under the Family Law Act in relation to the distribution of property. Same-sex relationships are included within the definition of 'de facto couple' in federal laws. The Child Support (Assessment) Act also applies to same-sex couples.

  Who do the laws about de facto relationships apply to?

  You can make an application for a ‘de facto property settlement‘ under the Family Law Act provisions if any one or more of the following conditions apply:

  your de facto relationship with your partner lasted for at least two years in total;
  you have a child with your de facto partner;
  you have made a substantial contribution to the property or finances of your partner;
  the relationship was registered under a State or Territory law; and
  you lived for at least one-third of your relationship in NSW or another state to where the laws apply (currently all Australian states and territories except Western Australia.)

  But it cuts both ways your $100K of savings would be split 50:50 with them as well