The impact of U.S. interest rate cuts on the housing market
Due to interest rate cuts in the United States and a certain decline in property prices, many people are beginning to consider taking advantage of the opportunity to buy property. They worry that when interest rates are cut further in the future, property prices will rebound and they will miss the opportunity to enter the market.
A young couple’s first home buying considerations
For a young couple or couple who don't have the deepest pockets, there's a lot to weigh when buying a first-floor property. Especially for unmarried couples, the author has encountered similar cases earlier and can break down the key points that need to be considered with readers to make the most suitable choice.
Mr. Chen’s troubles with buying property
Mr. Chen (pseudonym) has been dating his girlfriend for many years and has no plans to get married yet. At the same time, he needs a down payment from his family to be able to afford contributions and daily living expenses. In the case where the first installment of funds is paid by the husband's family, since the two are not married, Mr. Chen hopes to buy a house in his single name, so he can keep his girlfriend's first home purchase. On the other hand, since the amount of financial support from Mr. Chen’s parents is only enough for Mr. Chen to apply for an 80% to 90% mortgage loan, the monthly housing payment is a heavy burden for Mr. Chen. Mr. Chen’s girlfriend is willing to share the payment.
Jointly purchased property with shared ownership
Mr. Chen is worried about whether it is better to continue to go to the meeting in a single name or to buy a property in joint names. He also wants to know which situation will be more successful in getting approved for a mortgage. In terms of balancing the interests of both Mr. Chen and his girlfriend, jointly purchasing the property is a more appropriate choice.
Two forms of jointly buying a property
Buying a property in joint names can be divided into two types: "joint tenancy" and "tenancy in common". In Mr. Chen’s situation, it would be more appropriate to choose shared ownership because the first installment of the funds is borne by the husband’s family. In terms of ownership, both parties can achieve a balanced distribution method through the adjustment of ownership shares. . For example, Mr. Chen's family paid 20% of the property price as the down payment, and he or his family received a total of one-fifth of the property ownership; the remaining four-fifths of the property ownership was shared equally between Mr. Chen and his girlfriend (assuming that the two people paid for the property Equally), such distribution makes it relatively easy to balance the interests of all parties. Another advantage of using "shared ownership" is that if there are changes in the relationship between Mr. Chen and his girlfriend in the future, he can sell the property directly and divide the money according to the ownership points, without any loss to either party.
More flexibility when selling properties
If one party insists not to sell the property and is willing to contribute alone, the other party has the right to sell or transfer his share to family members without the consent of the other party, which makes the process more flexible.
Joint tenancy vs. individual holding
This is not possible with the "joint tenancy" method, because joint tenancy requires the consent of all joint tenants before the property rights can be sold, and the property rights held by one party cannot be sold independently. The characteristic of this method is that if one of the joint names dies, the title will automatically transfer to the other party. It is more suitable for parents and children to jointly hold the property.
Risks of holding in personal name
It is not impossible for Mr. Chen to continue to buy a property in his own name, but if the relationship changes in the future, the woman will be relatively unprotected. After all, Chen Sheng has full power in property management and can sell or increase the mortgage at any time without the consent of the woman. If the woman wants to get back her ownership points, she must provide evidence to prove it, which may require going to court.