Hello Ozbargain,
Recently, I am considering buying my first home in Brisbane. I am in a defacto relationship. My partner and I both want to buy a house but I am starting to think about how to calculate a fair way to split costs.
I have a bit of savings (about $85,000 at present). I am good at saving so this should exceed $100,000 before the end of the year.
My partner is also good at saving, better than me even but she is paid less and hence, we save about the same each week. She has about $25,000 now as she only just bought a car.
We are both employed full-time.
Two questions arise:
How do I calculate both our shares of a loan over 10 years based on the initial deposit amount if, for argument's sake, we borrowed $300,000 with a deposit on $130,000 (100,000 from me and 30,000 from her)? (Buy property at $430,000). To make up for the different amount paid at the start, what is the formula to know how to calculate fair repayments, with the intention of owning the property 50/50 by the end?
What if I buy a property on my own, borrowing $300,000 with a deposit of $100,000 (property valued at $400,000). I understand repayments would be my responsibility, but how would I calculate a fair share of the rent she could pay me over 10 years?
What are your thoughts and what other suggestions would you make? Maybe you know of a better way? These are the early stages and I haven't seen a bank or spoken to anybody about this.
either you commit or you don't.
1) what's yours = hers , vice versa. No % split/share BS.
2) buy your own, pay repayments by yourself, charge her rent. - Get a BFA done. (Binding financial agreement)