Buying a First Home: Joint Tenants, or Tenants in Common?

kyttiekat on 27/11/2019 - 16:16
Last edited 27/11/2019 - 22:18

Hi all,

Looking for some advice about owning property with a partner, and whether to own it as 'Joint Tenants' or 'Tenants in Common'. I'd really appreciate any advice or recommendations. I've also included a quick poll.

As some background, my partner and I have put down a 20% deposit on our first home, and we settle in late January. We currently live together in a rental as a de facto couple. We intend to marry in the next few years. We are in NSW.

I have put in almost 100% of the deposit, but he will likely be making 70%+ of the mortgage repayments in the near future.

Originally, our solicitor asked whether we want to own the property as joint tenants (which I understand means a 50/50 share), or as tenants in common (where we can nominate a different distribution, eg 80/20). More recently, however, he said that we should go in as joint tenants because "even if you nominated a split via tenants in common, it may have no impact, given the fact that de facto relationships are as good as marriage in property"

My questions are:
1. Since we are in a defacto relationship, is it true that we should just be joint tenants? If so, when would tenants in common be suitable then?
2. If we can own the property as tenants in common - then clearly, in the first few years, my contribution will have been very large but later on it will even out. Is it possible to change the nominated split later? eg start with 90/10 and later change to 60/40 etc? (solicitor said this is extremely difficult to do and generally "not done").
3. Does all of the above only apply to a death of one partner, or also just a breakup?
4. My partner also received a sizeable gift of cash from his family that he is thinking of putting into the mortgage as well. Would I be right to assume that this would then count towards his 'contribution'?
5. Where do wills fit into this?
6. Where do 'Binding Financial Agreements' (pre-nup agreements) fit into this?
7. How would you personally protect yourself from an early breakup / death in terms of having a much higher contribution to the property in the first few years?
8. Any horror stories to share?

Many thanks! Feel free to answer one, all, or none of the questions. :)

Poll Options expired

  • 87
    I am in a defacto/married relationship and own property as 'joint tenants'.
  • 8
    I am in a defacto/married relationship and own property as 'tenants in common'.
  • 1
    We started off as 'tenants in common' and have since changed to 'joint tenants'.
  • 0
    We started off as 'joint tenants' and have since changed to 'tenants in common'.
  • 19
    I own property independently.
  • 11
    I do not own property yet.
  • 55
    I hate Sydney property prices.
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Comments

      • Typical16-bitEnjoyer on 28/11/2019 - 09:18
        +1

        Why would you suggest tenants in common? Just wondering.

        You generally see it in blended families ie. seperated/divorced, you have kids from the first marriage/partner, then now in a new marriage/relationship with a second partner and buying a house with the second partner.

        It's complex, but means you can insure some inheritance goes to those children (from first marriage/partner) if you kick the bucket unexpectedly. Otherwise the house just goes to the second wife/partner completely.

        Of course there are legal issues and challenges in any event. Things often get messy when someone dies unexpectedly, has assets, and many want a share of those assets.

        • kyttiekat on 28/11/2019 - 11:25
          +2

          Thanks zeggie, that makes perfect sense. I suppose we are in a simpler situation (defacto + first home buyers) so perhaps joint tenancy is more suitable.

  • Cheapskate Paul on 27/11/2019 - 22:04

    "My partner also received a sizeable gift of cash from his family that he is thinking of putting into the mortgage as well. Would I be right to assume that this would then count towards his 'contribution'"

    You should use your partner's contribution to increase the deposit if at all possible. This will reduce the cost of lenders mortgage insurance(LMI), and eliminate it altogether if you can get to a 20% deposit. This will save you thousands of dollars as LMI is quite expensive with a 10% deposit.

    Also, if you decide on tenants in common then that may affect how the bank calculates how much they will lend you.

    • kyttiekat on 27/11/2019 - 22:21

      Oops - I've edited my post to say we have a 20% deposit, not 10%. So thankfully we will be avoiding LMI! (I was thinking 10% as that's what we've paid the vendor at the end of our cooling off period).

      I think we may use his contribution to pay down the mortgage straight away (if he decides to use it now).

      Good point about how the bank calculates their lending… we've just received full unconditional approval on our loan, but we were assessed together as a couple.

      Sounds like joint tenancy is the way to go. :)

      • geoffs87 on 28/11/2019 - 11:08
        +3

        noooo don't pay down the mortgage. Unless you're worried you'll easily spend that money on something else - put it in an offset account. This will benefit you both down the track if you decide to convert this property to an investment property.

        • kyttiekat on 28/11/2019 - 11:27

          You're absolutely right! We have an offset account as part of our package… so we can just park the gift in there.

  • Serenestyles on 27/11/2019 - 22:18
    +1

    joint tenants 50/50 as if you split in the future depending on children etc it will be up to the courts anyway

    • kyttiekat on 27/11/2019 - 22:23

      Thanks for your thoughts! Yes it seems like joint tenancy is the way to go. We were worried about splitting up in future, but if it's up to the courts anyway, then it won't matter.

      • brad1-8tsi on 28/11/2019 - 09:35

        That is not correct.

        The courts will not decide it. The courts will approve or reject the asset split that you and your partner negotiate & agree upon based on the information you provide in the consent order documents.

        Seriously, if you are considering what will happen if you split up then I wouldn't be taking the plunge. You need to decide if you want a relationship based on love or a business partnership.

        • kyttiekat on 28/11/2019 - 11:36

          Ah OK, I see. So in that case:

          Scenario: Tenants in common 60/40. If we split up, then… courts will approve or reject that split? Based on what? eg assessment of our contributions?

          Scenario: Joint tenancy. If we split up, then… can we negotiate a split ourselves? And if it turns messy, then the courts will do their own assessment?

          The result of each scenario seems similar.

          Also, we're very comfortable with our relationship (it's been quite a few years already!). I think I'm just one of those weirdos that likes to think of every possible outcome… D:

          • arkie0 on 28/11/2019 - 12:12

            @kyttiekat: brad1-8tsi is correct.

            Your scenario's are also correct. The process during divorce is the same, you negotiate the split yourself from the pooled assets based on your circumstances. Say it's soon after the property purchase, you both can agree to a 80/20 split settlement. The court just signs off if you both agree.

            If you can't agree you get lawyers involved and the court decides for you. The will take all the circumstances on board, both your view/reasoning on why you think the settlement should go your way, and also his views and decide a split for you. This is the bad option since most of the times the split will be similar minus heaps on lawyer fees.

            Don't worry about about what people say, not everyone is open minded. I'm in the same boat, happy in our relationship but we still talk about what if and prepare just in case.

          • brad1-8tsi on 28/11/2019 - 13:02

            @kyttiekat: Mate, i honestly don't know on the 2 scenarios you proffer.

            I do know that the assets the two of us brought into the relationship in 1982 meant nothing; my ex-wife earning 50%-100% more than me over 35 years meant nothing (Quote: "It wouldn't matter if you sat at home scratching your balls for 35 years").

            There was a $120k gap in what we thought was a fair number and I ate it because she wasn't negotiating and I'd rather her have the money than our solicitors so i made a "business" decision and let her have the extra $60k so i could move on with my life and not waste hours every week having shitty meetings with her. :-)

            you fill out 20+ pages of forms with assets, housing, living situation (new partners, other children), current & past involvement with children, childs age, education, disabilities, etc; employment, income and other stuff and the proposed asset split. You both sign and submit it to court. 6-8 weeks later it comes back and then you have a period of time to carry out the intent of the orders (transfer or sell property, etc). It cost ~$5800 in solicitors fees and I did the property transfer myself.

      • lvagg59 on 28/11/2019 - 10:17

        I was advised that if you have joint tenancy and then both parties died in an accident, the younger of the two would be deemed to have died last therefore the property would pass down via their will. This actually had an impact in my situation with a second marriage and children involved on both sides. Also depending on which state you reside the changing of the shares from tenants in common to joint tenants is not a big issue or cost.

        • kyttiekat on 28/11/2019 - 11:40

          Oh, dying at the same time - that's a difficult situation.

          Can I ask how it turned out? Was everyone fine with the will that was executed, or was it contested etc?

          • lvagg59 on 28/11/2019 - 14:56

            @kyttiekat: We decided to go with the joint tenants in the end and it actually made things more straightforward when my husband passed away 6 years ago without a will.

  • [Deactivated] on 28/11/2019 - 01:53

    Why not add a prenup while you are with a solicitor, just to confirm. Will probably cost an extra $1000. Plus iron out all your other thoughts such as super etc.

    • kyttiekat on 28/11/2019 - 11:41

      Good idea, we were thinking of doing this. Although I understand that it's not useful anymore since we've been defacto for more than 2yrs already.

  • [Deactivated] on 28/11/2019 - 08:48

    It’s great to love and trust someone, but until you are legally married or in a civil union keep your finances separate. Financially most of the responsibility, risk and debt is based on your income and savings, it seems unfair that you would have two names on the mortgage. Unless you need your partners income to get the loan approved that is.

    I have seen my sister and a cousin walk away from failed relationships with their partner refusing to buy them out for 18 months plus. In the mean time they have still had to contribute to the mortgage for a property they weren’t living in and start fresh.

    If you are questioning the split of the mortgage and percentages already the answer is to not proceed. Wait to buy a property together until you can both financially commit.

    • kyttiekat on 28/11/2019 - 11:46
      +1

      Thanks for your advice, I appreciate it.

      Up until now, our finances have been separate. He has been paying most of the living expenses though, while I've worked less due to illness (almost fully recovered). I definitely did need his income to get our loan approved, yes.

      With your sister and cousin - that sounds terrible. How did that work? They owned the properties jointly, then split up, and let's say they owned 50/50 - but you still need the other partner to buy you out, or both of you to sell?

      As an aside, we're definitely ready to commit (both in terms of the relationship and also financially). I'm just one of those weirdos that likes to consider every possible scenario… :(

      • [Deactivated] on 30/11/2019 - 08:43

        If you need his income, then it’s a joint venture. I would recommend getting a legal document of some description drawn up in their interim between now and getting married.

        I’ve always been all in with my current relationship and it’s been fine, however you need to trust your partner. My sister and cousin had to wait it out and get solicitors as both were owner occupiers (easier with an investment property). Both had the buy out agreement verbally, but nothing formal.

  • Ashbargin on 28/11/2019 - 09:52
    +1

    As others have said in a break up situation from a financial position you are effectively married, so ownership in this regards doesn't matter. The other questions you need to ask yourself with regards to structure is.

    1. Is either of you in a job where you may be sued/bankrupt? If so you may wish to considered holding the assets as tenants in common with the person most at risk holding say only 1% of the asset.
    2. Is there a possibly the property may be used as an investment property in the future. If so you would need to consider how the income/loss and future capital gain would be impacted by different holding levels.
    3. Will the lender even provide finance in the case of tenants in common? While most will there may be some lenders that do not like this or may charge more for this structure.
    • kyttiekat on 28/11/2019 - 11:55

      Thanks for your insights! Really helpful questions to think about.

      I used to be in a role where I could be sued/bankrupt as a sole trader, so I switched to a company structure to protect my personal assets. I'm no longer in that role.

      For #2, that's a good point to consider.

      And for #3, we actually already have finances approved unconditionally based on a joint application. So… perhaps that means it will automatically and definitely be joint tenancy then. Although solicitor did say we have a choice. But maybe that choice (eg if we go with tenants in common) will result in extra requests from the lender, eg getting assessed individually rather than as a couple…

      … walking around in circles…

  • OzHunterNSW on 28/11/2019 - 10:00

    How long do you honestly believe this relationship to last…
    Never go into business with a partner/family… never loan money etc etc.
    Go speak to a solicitor (on the side).
    What happens if they can not make payments, fall sick, die, leave,…
    Look after yourself

    • kyttiekat on 28/11/2019 - 11:56

      Hopefully we will be together a lifetime! Though I'm sure everyone starts off thinking that way.

      Thanks for your advice. :)

  • HeWhoKnows on 28/11/2019 - 11:01

    Ask your conveyancing solicitor.

    • kyttiekat on 28/11/2019 - 11:57

      Already have - his advice is in my first post. Just keen to hear from others. :)

  • geoffs87 on 28/11/2019 - 11:05
    +2

    I paid 100% of our 30% deposit of our >$1m property… At the time we still weren't married (although we were engaged). If you're worried about a messy break up, dont get married, or don't buy a house together.

    • kyttiekat on 28/11/2019 - 11:59
      +1

      Thanks - it's good to hear from others about this.

      I'm not "worried"; I'm one of those weirdos that needs to know every possible scenario to put my mind at ease. :)

      • geoffs87 on 28/11/2019 - 16:44

        Don't worry, i certainly consider these things too. When you're putting in excess of $400k to your SO's $0… you can't help but think "what if". At the end of the day, we both put our salaries (which are relatively equal) into a joint bank account, and the mortgage is drawn from there.

        If we ever get divorced, it would suck, she would walk away with ~50% of the house value, of which >50% of the equity is mine… But yeah, i just figure that wont happen us (crossing my fingers!!!)

        What gets even more crazy, is when you start talking about wills. Effectively in a marriage, survivor ship sees your assets go to your SO in case of you passing. Thats completely fair - i would want my assets going to my wife to support her and our baby :). If we both pass, generally assets get split between your beneficiaries (in our case a trust for our newborn son).

        Whats not fair, is say you're both in a car accident, I passed away immediately, my wife was in a coma, but survived me for 30 days then also passed (morbid stuff, but has to be considered). Because she survived me for >30 days, she is my beneficiary by survivorship. However as she soonafter passes away, ALL assets then go to her beneficiary (and my beneficiaries/family are left high and dry). I mean its all irrelevant because it will go to a trust for our son, but if we didnt have children…

        Life is scary when you have to start considering divorce/death as part of your planning - but at the end of the day - you really need to!

  • kingsville on 28/11/2019 - 12:01

    My understanding is that:
    If joint tenants, then if you die then the house is the property of your partner.
    If tenants in common, then if you die then your share of the house is the property of your estate. Which may or may not all go to your partner.

    I believe that joint tenants is the way to go.
    If there is a break up then it is not the case that 'everything is 50:50'. The financial settlement can take into account the differences in wealth you had upon entering the relationship as well as your income earning potential going forward.

    Good luck!

    • kyttiekat on 28/11/2019 - 12:04

      Thank you! That all makes sense. Seems that joint tenancy is the way forward. It's a relief to know that everything would be taken into account if we do ever break up.

      • kingsville on 28/11/2019 - 13:17

        I was in a similar situation and contributed 90% of the deposit. It was good for us to have a conversation to explicitly acknowledge and quantify the difference.

        When we were discussing the financial settlement for out divorce 12 years later it was relevant, but the fact that I was going to be looking after three kids was a more important factor!

  • Morven on 28/11/2019 - 12:05

    As the major contributor of funds (all the profits from the sale of my own home) I initially hesitated when buying as joint tenants with my fiancee, now my wife. My hesitation pissed her off and pissed off my solicitor, but eventually I just decided to take the plunge and we bought a big place together.

    Times change. Fast forward four years and she's now the major breadwinner. Our lifestyle is pretty good thanks to her. But that's not awkward, because my funds put us in the position we're in. I would still lose bigtime if we broke up, but I guess that's part of being in a committed relationship for me. We've had a kid and we're still together and he's growing up in the house and garden we bought together.

    Arguments over money are a big reason people break up. But you're not just "in a defacto relationship", you've either found someone who deserves your faith long-term, or you haven't. I decided "well, I trust this person" and we went forward. I still sometimes wish I'd kept more aside to invest in shares (I did this, but with only a small amount) but hey, if one of us dies tomorrow it's pretty simple: the one left to raise the kid owns the whole house, even before the will is opened.

  • sweefu on 28/11/2019 - 12:34
    +2

    Just reading through your comments, it seems your partner has been supporting you financially for 2+ years?

    I would view part of that support as his contribution to the property.

    It seems fairly greedy of you to allow someone to support you financially, and when you have an opportunity to contribute to the relationship (in the form of a deposit) start being concerned about % ownership.

  • [Deactivated] on 28/11/2019 - 12:35

    I have a property and am tenants in common. With my partner it will always be joint tenants. I have a property with a business partner thus tenants in common.

    I know no one knows the future but if you're already thinking about this you probably shouldn't buy a house together. I make much more than my wife now but I'm not going to do any split other than 50/50. Furthermore, I will also be happy to put her name as the sole owner even if I am paying the mortgage.

  • ripesashimi on 28/11/2019 - 13:28
    +1

    Man there are lots of misconceptions in this thread. 50:50 doesnt mean joint tenants. Can you do 50:50 with tenant in common? Definitely.

    The only difference is with joint tenants, instead of proportioning, you have something called principle of survivorship. Thus the nature of joint tenant is something like 100:0 or 0:100 when one of you, pardon me, kicks the bucket.

    If divorce happens, again its never gonna be 50:50. 50:50 is just a start. Can it vary as wildly as 30:70? Yes.

    If you predict a divorce, get a prenup. If you dont predict a prenup then weigh the pros and cons of a prenup in terms of what it can do to your relationship cus it requires you two to get 2 different lawyers who may suggest terms to protect you but disregard your partner's interest. A prenup is hard to enforce because you try to apply contract law to family law and the terms of the prenup often fails as contractual terms. Any uncertain, unilaterally decided, unenforcable terms are out the window. After that you have the presumption of contractual law between family members and things like duress, undue influence, unfair terms,…Also should add that the cost of a prenup can be as low as $2000 so many dont care enough to tell you which terms you suggest are good or bad. They are only required to explain.

    • Jugganautx on 29/11/2019 - 06:11

      If you are predicting a divorce in the future whats the point of getting married in the first place.

      Had a good chuckle at that one. :P

      • ripesashimi on 29/11/2019 - 15:05

        The point is to consider getting a prenup whether or not a divorce can be predicted. Statistically, lots of us will be getting a divorce whether we predict it or not. There are heaps of reasons to get married with a divorce in mind just saying.

    • harley on 30/11/2019 - 02:22

      Thanks for pointing out that joint tenancy doesn't mean 50:50. Rather that they both own the property 100% with the right of survivorship.

  • trapper on 28/11/2019 - 13:44
    -1

    You say you plan to marry in 2 years, so are you engaged?

    To be honest I don't think it's a great idea to buy a house with your boyfriend, even if you are already technically a defacto couple.

    What will happen if he breaks your heart and cheats on you.

    • cowiie on 28/11/2019 - 23:39

      Well you break his leg and take possession of your house.

  • trapper on 28/11/2019 - 13:55

    If you ever plan to convert this property into an investment property the % ownership will be a lot more important.

    If it will work out as negatively geared then you want the tax deduction for the higher income earner. If it will work out positively geared then you will want the rental income for the lower income earner. (Probably you if you plan to have children and work part time or not at all)

  • jaycn on 28/11/2019 - 15:53

    Do whichever gets you 2 x first home buyer grants.

    • trapper on 28/11/2019 - 17:35

      They are defacto already so can only get 1x

  • Oliver on 28/11/2019 - 18:07
    -2

    if you will own the place how are you tenants?

    • cowiie on 28/11/2019 - 23:39

      This is ownership talk not rental property talk.

  • Notcheapenough on 28/11/2019 - 20:40

    Congratulations on your decision to buy a property. Regardless of whether or not you are married it is a lifetime commitment. My partner and I have been together for 20 years and currently own our second house as joint tenants. In my mind when we bought our first house I felt the commitment meant I threw everything at the relationship which meant not considering the "outs" if it went wrong.
    While I'm not a solicitor, I don't think any form of title ownership will change the outcome. What you do need to consider is what you would want to happen if one of you dies. This is where joint or tenants in common differs. If you are comfortable with your partner receiving 100% of the property in that event then Joint Tenants is the simple option. If you would prefer your share (or some of it) to go to other members of your family or someone-else, then tenants in common would be better. However in the latter event consider what would happen to your partner if left with the full mortgage. Get advice from your solicitor and ensure both of you prepare Wills at the same time. All the best with your decision.

  • vid_ghost on 28/11/2019 - 21:33

    Tenants in Common is better.

  • cowiie on 28/11/2019 - 23:37

    I am in a partner relationship and we own two homes together as joint tenants. We are open about our finances and have both separate and joint accounts. At the end of the day, we pool all our money in offset accounts to save on interest but we still have the luxury of spending what we want when we want (to a degree). All bills and spending gets charged to my credit card as it allows more money in the offset accounts therefore more savings on interest (again).

    I don’t have any advice if shit hits the fan and you go separate ways, but if your relationship has enough trust to not worry about the financial aspect, you’re doing well.

  • bigbadboogieman on 29/11/2019 - 00:04

    Here's a thought… Instead of chucking in the full deposit yourself, "lend" half of it to him officially (on paper signed and acknowledged by him as a loan). Then both you guys chuck in 50-50 deposit. When he pays extra over and above compared to your contribution into the mortgage, consider 50% of that extra payment as repayment of the original "deposit loan" you gave him (the other 50% is basically his share of the extra repayment) until that deposit portion is settled. By that time (after a few more years) if you're still together then you would've ideally worked out your financial differences and if not then just keep contributing 50-50. This if executed correctly should work either way Joint Tenants or Tenants in Common.

  • HelloGorgeous on 29/11/2019 - 11:01
    +1

    1. If we can own the property as tenants in common - then clearly, in the first few years, my contribution will have been very large but later on it will even out. Is it possible to change the nominated split later? eg start with 90/10 and later change to 60/40 etc? (solicitor said this is extremely difficult to do and generally "not done").
      Changing the ownership ratio is still considered transfer or sales and therefore it will incur stamp duty, taxes (if applicable) and all other relevant expenses. You/ conveyancer/ solicitor would also need to notify the mortgagee before since there would be caveat and mortgage registered.

    2. Where do wills fit into this?
      No impact if its joint tenancy because the dead owner's interest will pass to the survivor.

    3. Where do 'Binding Financial Agreements' (pre-nup agreements) fit into this?
      You know what it is since you already talked to your solicitor. However, I suggest you to go see one more solicitor so each side has a representing solicitor 1. to give more advices 2. if anything happens, its less likely to use the excuse of 'under duress' or signing something one didnt understand.

    4. How would you personally protect yourself from an early breakup / death in terms of having a much higher contribution to the property in the first few years?
      I have seen people buying property with single owner then add mortgage and caveat 'borrowed from mum and dad' to the property. Also saw people had loan agreements with their parents if they are going to buy property with their partners. It will increase that person liability and useful if the couple splits. But if you need to get a mortgage, it will affect your liability and borrowing power.

    5. Any horror stories to share?
      i. A defacto couple - the boyfriend's parents bought him an apartment and the property was under his name and full paid. Unfortunately months later he died of heart attack and his girlfriend got the full ownership of the apartment. His parents were furious before they paid for the property but now his girlfriend owns it.
      ii. A married couple owns multiple properties and the husband is the main one managing family finance who used the advantage to maximize his own benefits. The wife never cares and signs whatever. The wife only realises at the divorce proceeding her husband used multiple methods to increase his liability and loans related to jointly owned property assets, meaning if the divorce goes ahead, she will be left no assets but debts.

    1,3,4 is tough to answer because finance, dependents and other factors will have impacts if you two need to go to court and dispute over distribution.

  • Dogsab on 29/11/2019 - 12:16
    +1

    I work in family law (not an admitted lawyer). A lot of bad advice here. The starting point is not necessarily 50/50 and most matters where there is a 50/50 split involve marriages/de facto relationships of 20+ years. Initial contributions absolutely get taken into account by the courts (if it comes to that) but become less significant if the relationship is a long one (which I hope yours is).

    Go see an accredited family law specialist and get some proper advice. Ignore the comments here that suggest that you're not committed to your relationship, there is nothing wrong with being informed and sensible. If your partner trusts you they shouldn't see you wanting to be informed as you not trusting them and should trust that you're not just simply looking to screw them over.

    If you do break up, go to mediation with an experienced family law mediator, come to an agreement and register consent orders with the court so they are legally enforceable and remember that sometimes fighting over that 10 - 20 percent disparity is not worth the emotional exhaustion and the, sometimes, hundreds of thousands of dollars you can spend on solicitor/court/valuation fees. Depending where you are - it sounds like you might be in Sydney - it can take up to 4-5 years for a property (only) matter to be finalized. The Court is grossly underfunded (federal circuit court judges often hear over 100 matters in one week) and just simply does not have the resources and property matters are low priority when you have kids being physically and/or sexually abused or suffering the consequences of their parents embroiling them in their own petty disagreements.

    All the best with your purchase. Make life easy and just go with joint tenancy.

  • sakurashu on 29/11/2019 - 16:50

    Not sure if somebody else has mentioned it but another big difference is what happens if one of you unfortunately happens to become deceased

  • duluxe2000 on 30/11/2019 - 00:49

    I would advise you not to buy the property before thinking through this, but you already did.

    If you two can't think of a split which is fair(to you), I think 50/50 is fair (based on what you wrote here, i.e. you save but he covers more than half of the expense)

    Whether if it's common or joint, think about if one of you passes away, would you want the partner or someone else inherit your share? This depends on your circumstance as well, e.g. do you have dependent parents ?

  • ganymede on 30/11/2019 - 02:03

    If you have any doubts in your relationship better with tenancy in common.

  • harley on 30/11/2019 - 02:51

    Again, just wanted to point out that joint tenancy is not 50:50; I hope your lawyer did not actually advise that. It's rather that you both own the property 100% with the right of survivorship. That is, if one dies, the other gets the house 100%. So in practicality, you can't just devise/sell off your part without the others agreement e.g. in a will.
    If you go tenants in common (up to you both on the split proportion), you have to be mindful that any one of you can sell off their share so do you potentially want to own property with potentially someone you don't know.
    Generally speaking, if you are in a short relationship with no kids, then you can expect to walk away close to your contributions upon breakup, the longer the relationship the more you move to 50:50, the more kids you have the more the proportion is adjusted in favour of the primary carer. Personally, if I was concerned about it, and that the property market would go up and he doesn't have the contribution for equal deposits, we would buy as joint tenants, have an offset account and he catches up on the deposit by putting money in there, and pay mortgage 50:50. Though as you say his mortgage repayments are going to be higher than yours so, if it was me I wouldn't worry as it is going to equal out, if not more in the future.

  • microsnot on 30/11/2019 - 11:42

    We do tenants in common. The person who's predicted to have the lowest income in the future gets the majority. E.g. if I earn more then I only get 20% whilst my partner gets 80%. One reason for this is that situations change and if you need to convert to an investment property and sell in the future it is more tax effective.

    The other reason we do TIC is to limit legal exposure. If someone (most likely the person with the higher income) is more likely to have legal proceedings against them then they own less.

    Basing it on how much you put into the deposit or repayments seems odd to me. People have children or get sick/injured so who knows what you'll be putting into the loan in the future.

  • WhoGiveAShxt on 30/11/2019 - 20:51

    You should consider purchase the property through a trust. Both of you own 50/50 or 60/40 of the trust. It might cost you some money to set up in the first place and run every year. But It would be much much easier for both of you if your relationship do not work out in the future. (One could just purchase another shares without triggering those heavy taxes, tons of arguments and shit)

    After all, 40 - 50% of the marriage end up with divorce in America, and that was those people who have courage to get out of their relationship. Now you think about all those cowards who staying. (I am not sure what is the divorce number in Aussie, the survey have different method of calculating the percentages)

  • zoinks on 01/12/2019 - 00:09

    I tried not to worry about the break up side of things. My fiancé and I who had been together many years purchased our house 9 years ago. In the beginning I had saved $40,000 he had $0 but earned 20% more than me, we then saved $50,000 combined within a year to get to 20% deposit (we didn’t actually track who saved more). Now we are still not married, we have 2 young kids, I work part time and he earns twice as much as I do but he has a much lower income than he used to, his old work place of 20 years closed down and he got paid a package of $100,000s… so I guess I’m trying to say it all sounds daunting now but he might end up contributing more than you eventually/you never know what unexpectedly might happen to benefit you financially in the future. It was the house deposit/excitement of owning a home that changed my partners spending habits and he’s been great ever since, haven’t had mortgage stress yet

  • cyrax83 on 01/12/2019 - 01:28

    Wow sounds like you're not ready if your already thinking about what happens if this all goes to crap.

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