Buying A House

[I_Money]

Well not quite, but with the recent slump in the housing market, this weekend my gf and I are going to look at a piece of land. It is 6 acres, 1 hour outside Boston. From the pictures it looks lovely - so we are both very excited about seeing it.

We will plan to build upon it in a few years. It is all very exciting!

[troopernflight]

I bet you're excited. Is this going to be your first buy? Just make sure you find a builder that you can trust. There are too many horror stories out there and just as many law suits. My brother is a builder down in TX, and he says that good builders are like chicken's teeth. Good luck!

[aloft]

You're looking at buying property...jointly?

[WindyCityPilot]

Be careful about buying property with someone who you are not married to. I have a few friends who made that mistake and it got ugly when they broke up. One person should own it and the other should pay "rent" or their share of the monthly payments. Much easier that way. That's my take on it.

[I_Money]

Yes this will be my first buy. Her father is a GC and will be building it, so that will not be a problem, and will save us a fortune too.

Haven't discussed whose name it will be until we are married - good point - I will bring it up.

[JA Yawd Bwoy]

congrats

[fly22]

Thats sound advise on not putting both names on it.

[nsktrombone84]

Originally Posted by WindyCityPilot

Be careful about buying property with someone who you are not married to. I have a few friends who made that mistake and it got ugly when they broke up. One person should own it and the other should pay "rent" or their share of the monthly payments. Much easier that way. That's my take on it.

I would like to add, however, that no matter how you decide to take title, if you are married and filing jointly for 2+ years upon sale of the property, you get a $500,000 captial gains tax incentive instead of the usual $250,000. Just something to think about

[WindyCityPilot]

Originally Posted by nsktrombone84

I would like to add, however, that no matter how you decide to take title, if you are married and filing jointly for 2+ years upon sale of the property, you get a $500,000 captial gains tax incentive instead of the usual $250,000. Just something to think about

Key word is "Married". There are benefits to having both names on the title then once you are married. But if you're just dating someone and you are both on the title it can get ugly fast if you break up.

[nsktrombone84]

Originally Posted by WindyCityPilot

Key word is "Married". There are benefits to having both names on the title then once you are married. But if you're just dating someone and you are both on the title it can get ugly fast if you break up.

I agree with that, for sure. A lot of people take title without realizing the ramifications. i.e. if he decided to take title in severalty (sole ownership), she would probably sign a quitclaim freeing herself of all entitlement to the home. But if he died, the property would go straight to the state probate court and she wouldn't see a dime of it because she technically was paying rent. Even uglier -- if they took title as tenants in common but weren't married, then broke up, she has legal ownership of half the home. She runs off with half the equity in the home and sells her half to whoever she pleases...even the would-be mother-in-law he couldn't stand as payback. Don't laugh -- this has happened!

Point being, I would urge you to consult a lawyer well-versed in title law before you signed anything. Just my two cents.