HOMEBUYING IS NOW A COUPLE AFFAIR.

Shared homeownership has its set of advantages. With strategic planning, clear communication and expert guidance, couples can successfully embark on their homeownership journey while strengthening their financial foundation.

By planning property purchase together as a team, couples not only take the first towards building a life together but also lay a solid foundation for their financial future.

Buying a property jointly certainly offers several benefits. “Purchasing a home jointly can be beneficial financially if both the partners are on the same page as far as the finances, their roles, and future plans are concerned.”

ADVANTAGES OF SHARED HOMEOWNERSHIP:

The upside of jointly buying property:

Jointly buying property allows for shared financial responsibilities, making homeownership more affordable by combining incomes and securing better loan terms. “One key advantage is that it enables couples to pool their financial resources, making it possible to invest in higher-value properties that may be out of reach for an individual buyer. This combined purchasing power opens opportunities to secure better locations or more spacious properties. This can lead to better returns on investment and access to premium locations. It also provides flexibility in terms of decision-making and can be a great way to leverage the collective expertise of co-investors.”

Co-ownership also strengthens commitment, providing stability and a sense of partnership in building a future together. “A home purchase is one of the biggest financial and emotional commitments a couple makes together. Buying a home together is a major life milestone that fosters financial dispute and long-term planning as a couple.”

The couple share the many benefits of co-owning property:

• Tax benefits: A co-owned property can help both partners claim tax deductions on home loan interest under Section 24(b) and principal repayment under Section 80C.
• Shared responsibility: Splitting EMIs, maintenance, and other costs makes financial planning easier and reduces individual burden.
• Legal security: In case of unforeseen circumstances, joint ownership ensures security and clarity in asset distribution.

Plan a strategic roadmap for your homebuying journey:

As couples set out to purchase a home, a well-planned approach is essential for a seamless and successful experience. “By following these steps, couples can navigate the homebuying process confidently, ensuring a successful investment that supports their shared goals.”

IMPORTANT STEPS TO GUIDE THE PROCESS:

• Financial assessment: A combined purchase requires the utmost financial transparency to avoid any future hurdles. Couples need to analyze their credit history and existing obligations and resources to establish their financial position. “Both partners need to assess if they are willing and able to service the EMIs and the initial down payment.” Couples must be able to comprehend their combined income, savings, and existing debts. “This helps define a realistic budget.”
• Homeownership goals are defined together: Clear alignment of a couple’s goals with their future home helps avoid disagreements later. “Couples must discuss and agree on their must-haves, such as amenities, budget, and future growth potential. Evaluate how the property fits into their long-term life plans, whether it’s for raising a family, career mobility, or retirement. This ensures the property aligns with their future.” Without fail, couples must consider distance to the workplace, location of the potential house, discuss potential changes like career shifts, relocation, or family planning that may impact their homeownership journey.
• Set a realistic journey: Apart from the purchase price, couples to set a budget for additional costs like stamp duty, registration, maintenance, and loan-related expenses. This will prevent any financial strain post-purchase. “Determine a budget factoring in home price, registration fees, property tax, and maintenance costs. Don’t overcommit — keep emergency savings intact.”
• Down payment and other expenses: Both partners need to agree on a repayment strategy to avoid financial stress, such as defining each partner’s financial contributions for down payments, EMIs, and household expenses. Advises couples to save at least 20 percent for the down payment.
• Get your home loan pre-approved: Getting pre-approved for a loan can give you a clear understanding of how much you can borrow, making it easier to narrow down your options. “A pre-approved home loan streamlines the buying process and provides clarity on affordability. Joint applications often result in lower interest rates.” Getting pre-approved for a home loan can make your offer more attractive and better positioned to get accepted by the seller.
• Research the market and scout properties together: Explore different locations, real estate trends and property types that fit your needs. “This research helps make you informed decisions based on future growth and accessibility. Visit shortlisted properties together to get a feel of the space and neighborhood. This ensures both partners are fully involved and satisfied with the homebuying decision.” Recommend picking a locality that suits your current lifestyle while accommodating future needs. Apart from t his, they also insist couples conduct thorough research by comparing potential projects, builder’s reputations, legal clearances and the property’s resale value.
• Enlist trusted professionals: Legal and financial experts help you navigate documentation, taxes, and loan agreements, ensuring all the legalities are handled correctly.” Shortlist a real estate agent to help identify potential properties and enlist the help of a property lawyer to verify legal documents and ownership rights.

REGISTER THE PROPERTY AND FINANLIZE THE TITLE DEED:

Strongly recommend registering the property under both names. “Draft a co-ownership agreement, if needed, and ensure legal clarity on rights, responsibilities and exit strategies if required.” In addition, advises that when finalizing the title deed, ensure that both names are on the home loan agreement as well to avoid ambiguity. Suggests that it may be worth considering home insurance to cover the property. This ensures that both partners share equal ownership not just of the home, but also of the financial liability attached to it. Having a well-defined exit plan is a prudent way to safeguard your investment in case the relationship encounters rough waters. Buying a home together is more than just a financial decision, it’s just the start of a shared future. With the real estate strategies and open communication, you can navigate this journey with confidence and build a space that reflects your dreams.