Buying separate houses

Qwerty1006 · 10-12-2018 2:38pm #1

Hi All,

Thanks in advance for reading!

So basically in a relationship for approx. 6 months. Thing moved along pretty quickly and are going great so far. We are both late 20's and had been individually saving deposits to purchase our own houses for the last 18/24 months. We have both been bidding on properties throughout the year (plenty of disappointments!!) and only in the last couple of months my partner has gone sale agreed on a property after a lengthy bidding process. I have had similar bad luck, but have just put a booking deposit on a new build. The houses are both near our home houses and approx. 40km apart from each other.

Are we mad to both be buying our own individual houses? Relationship-wise things are going very well, but it's relatively early days on that front, so I don't feel I should put my plans on hold when a pretty perfect property has come on the market for me. Similarly for him, he has been through a lengthy bidding process and is over the moon to have secured his property. We both earn decent salaries and neither of us should have an issue with our repayments based on our current status.

Obviously in the not too distant future, based on how things are going currently, we will move in together - but at this point with our deposits saved, mortgages approved and houses lined up for purchase does it make sense for us to continue as planned pre-meeting each other?

Cash_Q · 10-12-2018 3:05pm

Yes makes the most sense to carry on as you were, if/when you decide to move in together the other house will always be there and can maybe be sold on or rented out. If you were to pool your assets and buy together, you're tied into the mortgage for 30 odd years and if things don't work out you could have any kind of difficulties sorting it out.

Keep going as you were and fair play for achieving so much at such a young age!

TheBoyConor · 10-12-2018 3:15pm

Absolutely it is a good idea to buy separately. You keep your independence and if the relationship goes south they wont want to take half of your house because then you could try to take half of theirs.

Qwerty1006 · 10-12-2018 8:22pm

Thank you both!

Addle · 10-12-2018 8:30pm

And you can both have the benefit of first time buyers status, which can be very beneficial.

listermint · 10-12-2018 8:33pm

Sorry OP I'd put my plans on hold. If you are quite serious that this is going somewhere you'd be mental to buy a house yourself. Keep saving and renting. Why would you want a property and then have to upkeep both should it come to it .

Pooling your money later on to get a decent place or trying to sell two smaller inadequate properties....no thanks.

ArtyC · 10-12-2018 8:48pm

I wouldn't change my plans or his , It's early days and the pressure of a house purchase could ruin the relationship and lose you both monies

Stick with the plan - safest bet !

Qwerty1006 · 10-12-2018 9:37pm

ArtyC wrote: »

I wouldn't change my plans or his , It's early days and the pressure of a house purchase could ruin the relationship and lose you both monies

Stick with the plan - safest bet !

That's my thinking. Obviously I have high hopes for the relationship and I see it being long-term for sure. I'm just in the position now that I've planned to be in for the last 18 month's (likewise he is!) and it just so happens that we have since met each other. We gave obviously spoken about it, he's happy that we both buy our own properties and down the line depending on our work situation etc move into one or the other.

shenanagans · 11-12-2018 1:02am

I'd carry on as planned as long as at least one of the properties is in a good rental location. So there's no issue a year down the road if ye want to rent it out.

If it rural location ..I'd put plans on hold.

Qwerty1006 · 11-12-2018 1:34pm

shenanagans wrote: »

I'd carry on as planned as long as at least one of the properties is in a good rental location. So there's no issue a year down the road if ye want to rent it out.

If it rural location ..I'd put plans on hold.

Yes, both houses are in good location. Both are in commuter towns for Dublin so either would rent out without an issue I'd imagine.

amcalester · 11-12-2018 1:43pm

If you are availing of the Help to Buy scheme there's a clawback if you don't live in the house for 5 years so that is wort keeping mind.

Though, if you were to rent out a room while you are living there that rent would probably exceed any claw back after 2-3 years.

Baby01032012 · 11-12-2018 1:50pm

I see the benefit of both sides here. However ask yourself this - for quality of life- you are both buying in commuter towns and I’m assuming working in Dublin. I’m also assuming as ye are both single applicants ye don’t have the buying power most applicants as a couple would have, are ye giving up buying in a better location because ye are buying on your own. I’d seriously consider holding off a year or two see where relationship is then, it could be a different market then. Imagine relationship continues to flourish ye get engaged house prices have dropped because of brexit or supply and ye arre tired of commuting and now own 2 houses in location that is not ideal and are an accidental landlord.

SozBbz · 11-12-2018 2:09pm

shenanagans wrote: »

I'd carry on as planned as long as at least one of the properties is in a good rental location. So there's no issue a year down the road if ye want to rent it out.

If it rural location ..I'd put plans on hold.

I think this comment has merit.

It really depends on how happy you both are with the individual houses. If either house is a compromise, then perhaps its worth waiting. Do you actually want to live in these commuter towns or is that just what you can individually afford?

FWIW I was in the process of buying when I met my OH. I'd had 2 sale agreeds fall through around the time we met. During our first year together, another sale agreed fell through. At this point we decided to move in together renting, which we did for a year, during which time I managed to complete on property #4, where we both now live.

At 18 months into our relationship, and 6 months into living together, I would not have wanted to put my plans on hold, or equally to try to make him buy with me.

As its turned out, its been great as we've both now been out of the rental market for 3 years. He has money saved which will go towards the deposit for the next place when we buy together next time. He did look at buying a rental property himself during the last few years but ultimately decided he didnt want to be a landlord. I didnt discourage him in any way. Until we're both ready to move and buy together, how he wants to invest his money is up to him. My place suits us down to the ground currently, we've a good amount of space in a great location, so we're in no hurry but its not the long term dream.

Theres lots to consider, but personally, 6 months is far too soon to be making financial decisions. I'd both plough ahead, unless as I've said above, the houses you're buying are both just to get you on the ladder so to speak and you're already compromisnig just to own something.

If they're actually properties you could see yourself living happily in for years to come, then I'd just go ahead, even if one of them ultimately becomes a rental. Maybe don't go crazy buying furniture if you think it may become a rental.

I would not buy with someone after only 6months, or indeed without living together first. Our situation was chaotic but its worked out in the end. Could we be living in a bigger place if we'd bought together? Probably. But the strain buying together too soon would have put on our relationship would have been too much. I'd rather be living in our current place, with the spare funds invested, with the means to trade up in a few years and our relationship intact.

Qwerty1006 · 11-12-2018 2:33pm

amcalester wrote: »

If you are availing of the Help to Buy scheme there's a clawback if you don't live in the house for 5 years so that is wort keeping mind.

Though, if you were to rent out a room while you are living there that rent would probably exceed any claw back after 2-3 years.

Yes, I am availing of the HTB scheme. I plan on renting out a room initially and see how that goes. I don't need to money-wise but would be nice to have the company and the additional funds would be no harm.

I hadn't thought about that point though so thank you.

Qwerty1006 · 11-12-2018 2:37pm

Baby01032012 wrote: »

I see the benefit of both sides here. However ask yourself this - for quality of life- you are both buying in commuter towns and I’m assuming working in Dublin. I’m also assuming as ye are both single applicants ye don’t have the buying power most applicants as a couple would have, are ye giving up buying in a better location because ye are buying on your own. I’d seriously consider holding off a year or two see where relationship is then, it could be a different market then. Imagine relationship continues to flourish ye get engaged house prices have dropped because of brexit or supply and ye arre tired of commuting and now own 2 houses in location that is not ideal and are an accidental landlord.

Yes, we both commute to work in Dublin. We both had quite decent deposits saved and have agreed on 2 x 3 bed-semis so not really compromising on size in terms of our current affordability. Location wise - both locations are very near to our home houses, so again not compromising on location. I will likely move jobs closer to home/new house in the next 12 months or so as the commute is wearing a little at this stage.

Qwerty1006 · 11-12-2018 2:44pm

SozBbz wrote: »

I think this comment has merit.

It really depends on how happy you both are with the individual houses. If either house is a compromise, then perhaps its worth waiting. Do you actually want to live in these commuter towns or is that just what you can individually afford?

FWIW I was in the process of buying when I met my OH. I'd had 2 sale agreeds fall through around the time we met. During our first year together, another sale agreed fell through. At this point we decided to move in together renting, which we did for a year, during which time I managed to complete on property #4, where we both now live.

At 18 months into our relationship, and 6 months into living together, I would not have wanted to put my plans on hold, or equally to try to make him buy with me.

As its turned out, its been great as we've both now been out of the rental market for 3 years. He has money saved which will go towards the deposit for the next place when we buy together next time. He did look at buying a rental property himself during the last few years but ultimately decided he didnt want to be a landlord. I didnt discourage him in any way. Until we're both ready to move and buy together, how he wants to invest his money is up to him. My place suits us down to the ground currently, we've a good amount of space in a great location, so we're in no hurry but its not the long term dream.

Theres lots to consider, but personally, 6 months is far too soon to be making financial decisions. I'd both plough ahead, unless as I've said above, the houses you're buying are both just to get you on the ladder so to speak and you're already compromisnig just to own something.

If they're actually properties you could see yourself living happily in for years to come, then I'd just go ahead, even if one of them ultimately becomes a rental. Maybe don't go crazy buying furniture if you think it may become a rental.

I would not buy with someone after only 6months, or indeed without living together first. Our situation was chaotic but its worked out in the end. Could we be living in a bigger place if we'd bought together? Probably. But the strain buying together too soon would have put on our relationship would have been too much. I'd rather be living in our current place, with the spare funds invested, with the means to trade up in a few years and our relationship intact.

Thank you for your comment - definite food for thought.

Neither house is a compromise at this stage of our lives - both 3 bed semis in nice areas close to our respective homes. Exactly I don't want to jeopardise either our relationship together or if anything negative happened in that respect, put on hold my plans when everything is finally seemingly falling into place. I obviously also see the flipside of us as a couple taking on twice the debt we need to, but we both have the earning capacity to more than deal with our individual mortgages.

hello2020 · 11-12-2018 6:04pm

Cash_Q wrote: »

Yes makes the most sense to carry on as you were, if/when you decide to move in together the other house will always be there and can maybe be sold on or rented out. If you were to pool your assets and buy together, you're tied into the mortgage for 30 odd years and if things don't work out you could have any kind of difficulties sorting it out.

Keep going as you were and fair play for achieving so much at such a young age!

+100 to this.
u can just search the boards for how messy it is to split the house in case of split.

AlmightyCushion · 11-12-2018 6:12pm

Qwerty1006 wrote: »

Yes, we both commute to work in Dublin. We both had quite decent deposits saved and have agreed on 2 x 3 bed-semis so not really compromising on size in terms of our current affordability. Location wise - both locations are very near to our home houses, so again not compromising on location. I will likely move jobs closer to home/new house in the next 12 months or so as the commute is wearing a little at this stage.

This bit would have me worried if I was you. Long commutes are a killer as you have learned. It's easy to say you'll get a job closer to home but how realistic is that and how likely is it to stay that way? What are the employment opportunities like for you within a reasonable commuting distance to the town you want to buy? Is there a chance the commute can increase (more traffic on the roads). How many suitable employers for you are there with in a decent commutable distance from the town? If it's, only one or two then what happens if they go out of business or downsize and you lose your job?

Qwerty1006 · 11-12-2018 6:33pm

AlmightyCushion wrote: »

This bit would have me worried if I was you. Long commutes are a killer as you have learned. It's easy to say you'll get a job closer to home but how realistic is that and how likely is it to stay that way? What are the employment opportunities like for you within a reasonable commuting distance to the town you want to buy? Is there a chance the commute can increase (more traffic on the roads). How many suitable employers for you are there with in a decent commutable distance from the town? If it's, only one or two then what happens if they go out of business or downsize and you lose your job?

I would be able to get a job without too much hassle in my locality. I went on the lookout last year, accepted an offer but then accepted a counter offer from my current workplace. Counteroffer was not about monetary gain, it was a different role that was more flexible considering my commute.

Obviously there would be fewer jobs in my locality but still plenty of demand to not have me worried in that respect.

Buying separate houses

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