Advice on my condo: Sell or Rent?

[Michelle83]

Thanks again for all the replies. Yes, it'll definitely be a good idea to speak with a lawyer I think to get everything in place. I"m just really happy to hear that it is in fact possible, with the right steps taken, to protect my money if it went in as a down payment. From speaking it her, it seemed like basically if I put it down, he's entitled to half and there's no way around it.

All of this would be for a future home down the line though; it's him who's set on buying right now and I told him I didn't feel comfortable at this point getting into any mortgage together (I want to wait until we're at least engaged), so we said I would rent from him for the time being... definitely a better in my mind. But I think I convinced him last night renting is the better route to go for now anyway as he's really not going to get what he wants with the down payment he has saved up.

This way we can rent, and if engagement does come (I could see it coming in the next 6-12 months), then we can look at buying a bigger and nicer house together and I'll put in my downpayment.

Thanks also for the link to the laws... I'll check that out. I think I need to do a bit more reading on everything to really get an idea of what's all involved. I know I want to start investing my money more, it's just figuring out the best way for me to do so.

[Michelle83]

Sorry, I just had one more question on this scenario now. So we've decided to just rent in the new city for a while, we'll see how things go and if things are working well, I"ll look at selling my condo.

Now, let's say we were going to get into a townhouse in 6-12 months, live there for 2-3 years and then move on to buy a bigger longer term house. He wants to at that point turn the townhouse into a rental property.

We talked about each of us putting the same amount down on the townhouse (50k each) for the down payment. But, would this be the right thing to do if he wants to turn it into a rental? or would it be better for him to buy the house, have everything in his name and me still rent off him?

Does most people who are married and invest do so together or separately?

[the-royal-mail]

Michelle83, please note it is not necessary to quote everything you reply to. You can simply type your reply and address the person by ID if need be. We've already read their comments in this threaded view and all the extra quoting is causing unnecessary scrolling.

[Four Pillars]

Sorry, I just had one more question on this scenario now. So we've decided to just rent in the new city for a while, we'll see how things go and if things are working well, I"ll look at selling my condo.

Now, let's say we were going to get into a townhouse in 6-12 months, live there for 2-3 years and then move on to buy a bigger longer term house. He wants to at that point turn the townhouse into a rental property.

We talked about each of us putting the same amount down on the townhouse (50k each) for the down payment. But, would this be the right thing to do if he wants to turn it into a rental? or would it be better for him to buy the house, have everything in his name and me still rent off him?

Does most people who are married and invest do so together or separately?

I'm not an expert at all on this stuff, but I don't see how you renting from your husband will nullify the 'matrimonial home' scenario. You're married, you are living together - how is that not the matrimonial home?

Keep in mind, that if you split up, you don't have to involve the courts and the laws, so if you two agree that the townhouse is "his" then there won't be any problem. However, if you don't agree - that's where the lawyers and laws come into play. I would think that if you contest it, you would be easily able to prove that the townhouse is the matrimonial house and you could get half.

[MoneyGal]

The question is, what is worse...divorce, or unnecessary scrolling? I can't tell anymore.

My own thought on this is that whether or not you legally marry a person with whom you have a "spouse-like" relationship - you should be pretty confident in the relationship before you buy property together. And pretty clear what the implications of joint ownership of property OR joint occupancy of property would be.

This is the time for a pre-nup - you don't have to ever get married in order to create a pre-nup. It is an agreement made in contemplation of marriage, and it could be useful if you disagree with the standard legal provisions which would apply in the case of legal marriage and in the case of common-law marriage. If you're good with the legal provisions as is - although I don't know that you are clear what they are, and you've been given conflicting advice (even conflicting advice from one person, me) in this thread - then you don't need to do anything. But right now it sounds to me like you are doing too much hedging and wondering. Are you sure you want to intermingle your finances with this other person?

[kcowan]

Michelle
I think you and this other person do not see eye-to-eye on a number of things like owning rental property. I would spend more time discussing those differences of outlook rather than working out ways to protect yourself from it.

[Four Pillars]

The question is, what is worse...divorce, or unnecessary scrolling? I can't tell anymore.

Lol.

But right now it sounds to me like you are doing too much hedging and wondering. Are you sure you want to intermingle your finances with this other person?

Exactly. For now, I would just rent with him and see how that goes. See if you get married, buy a house etc.

By the time you are ready to sell/rent out your first house, you will probably be a few years into your marriage. By that point, shouldn't it be a joint effort?

[sprocket1200]

sell, fast....!!!

[Michelle83]

Thanks for all the replies. That's all very true. I think I just get a bit anxious/stressed as he's not nearly as calculated with his money as I am, nor does he save or manage his money as well, so it makes me a bit worried about what could happen. I also am not sure I'm set on rentals yet from everything that was said; he seems much more so. I'll talk with him more about my fears/concerns. I know money is such a problem in so many relationships, my parents fight about it constantly, and part of me worries it may be much the same with him.

[Square Root]

Sounds like you have a good handle on the important issues. Good luck in your decision.