A Home Sweet Deal? Navigating the Ins and Outs of Renting from Your Partner
As my partner of six years prepares to buy a small townhome in a city with a low cost of living, I’m left wondering how to approach our living arrangement. With a monthly mortgage payment of around $2,000, he plans to rent out the property and include the income in his mortgage application. His ultimate goal is to pay off the townhome by the time he retires in 15 years, while I’ll be retiring in 10.
The Benefits of Co-Living
On the surface, this setup seems like a win-win. My partner gets to pay off his mortgage, enjoy a low-impact lifestyle, and split the cost of groceries with me. I, on the other hand, avoid the headaches and expenses of homeownership, such as replacing the roof and HVAC system.
But What’s Fair?
The question remains: how much rent should I pay? Should I cover half of the utilities and half the going rate of rent for similar townhomes, or should I pay slightly less since my partner gains equity and I don’t? And what about when the house is paid off and we’re both retired?
A Fresh Perspective
One suggestion is to view this situation as a typical renter scenario, but that doesn’t quite fit. Perhaps a better approach is to consider the bigger picture. What if we break up, or if my partner falls ill or passes away? How will my rent payments change over time?
Investing in My Future
Rather than focusing solely on rent, I should think about my own financial independence. With a 25% higher income than my partner, I could invest in my own property, even if I don’t live there. This would provide a safety net and allow me to maintain a roof over my head without relying on anyone else.
Balancing Love and Financial Sense
Ideally, I can have a happy life with my partner while also securing my financial future. By investing in real estate and building my own wealth, I’ll be better prepared for whatever life throws our way.
Leave a Reply