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You’re already living together, so why not take that rent money and put it towards a mortgage payment. On the surface it seems like a very logical idea, you’ll be spending about the same and earning equity in the meantime. You’ll also have the freedom to decorate any way you want. And maybe that significant other is handy and you could even purchase a fixer-upper and flip it.
All of this sounds good on the surface, but is rarely a good thing in actuality. First of all, ask yourself why your significant other is not your spouse. If there’s some reason for the lack of comittment, then a home purchase is probably not a wise idea. A home is almost as much committment as a marriage.
And even though you both love each other and can’t imagine ever breaking up, the break up is something to consider before buying a home together. If you do break up who is going to get the house? Is one person going to be able to buy the other one out? Will you both have to sell the home, and if so, will you lose money on the sale? These issues need ot be ironed out before you make this leap.
Try to remember that a home purchase is a business transaction and you’ll do better if you keep emotions out of the picture.