All Topics / Help Needed! / BUYING A PROPERTY WITH A PARTNER

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Dave@PI[email protected]
    Participant
    @davepi
    Join Date: 2012
    Post Count: 14

    Gday All!!

    Can some one please help. I would like to buy a house with my girlfriend, but also protect each others assets if we ever broke up. (I have heard way too many stories;)

    We spoke to the bank and they said we would need to have a shared mortgage.  It would have to be a 75/25 split on the purchase price and associated costs.

    1. Is it possible to have 2 separate loans without going through a company/trust?

    2. Does a contract hold up if we are in a defacto relationship with no kids? or then have kids?

    3. What if 1 person defaults?

    4. What are the tax implications?

    Thank you very much!!

    Dave

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    Hi dave,

    Very understandable and sensible to be thinking like this

    1. Yes although you are still responsible for the other halfs morgage because both of your names are on the title

    2. The female will always win especially with kids! from memory 60% of your assets (including super) is the most they can get if married.(could be wrong though)

    3. I believe its very similar to a normal default. Property will be repossessed unless you pay for their half default.

    4. None really they have a option on E-tax to put yourownership percentage in. 

     

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me | Phone Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of Dave@PI[email protected]
    Participant
    @davepi
    Join Date: 2012
    Post Count: 14

    Thanks DK!

    Which do you think would be the best loan structure?

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    I only have one jv and its with a mate but we have seperate loans. It doesn’t have that many faults as long as you and your partner have the same goals and plans.

    Pros: Easy to get your foot in the door
    Less capital needs to be put down

    Cons: Risk of partner defaulting
    Have to access equity with partner on title.

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me | Phone Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    I bought my first property with my fiance when she was my only my girlfriend (de facto partner). We shared the mortgage to make it easier, and we talked at length about the commitment to buy a property together.

    I think a big factor in it is the trust you have in your girlfriend and the relationship. We had a solicitor help us out with the contract between us, and I think if you're worried it would be best to have them involved so that you can put things in writing and have clarity about the potential issues from a more legal perspective.

    Profile photo of AdrianJPAdrianJP
    Participant
    @adrianjp
    Join Date: 2014
    Post Count: 5

    Hi Dave,

    Sorry to be a drag mate but my advice is just be very careful. With dating you can see what happens, but a mortgage is forever.

    If (knock wood) the relationship were to end, then you would both be stuck in a potentially disastrous position.

    Be careful my friend and good luck.

    Profile photo of Dave@PI[email protected]
    Participant
    @davepi
    Join Date: 2012
    Post Count: 14

    Thanks for the advice guys. I think we will get a joint loan with a contract. Which ever way it is structured , if one defaults the other has to take over, so the JV mortgage seems to be the easiest way!

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