It was a practice from previous generations to marry first and then acquire a home only after they had already gotten married. Or receiving from their parents a house and lot as a gift in consideration of their marriage. These days, however, that accustomed practice from older generations seems to be quickly changing. But most often than not, the thought of buying a home is indeed an exciting idea for anyone, married or single. But is it really a good idea? Perhaps you find yourself now ready to settle down with your significant other and now you’re planning on spending the rest of your lives together. However, a dilemma might present itself along with your preparations for your marriage, it is weighing decisions between buying a house before vs. after marriage, on which you should be thinking about the pros and cons of each choice.
Marriage should be the best day for every couple out there and a perfect cause for celebration, not for stress, but thinking about buying a home as you begin your new life together can be quite intimidating and worrisome. It’s a well-known fact that both a wedding and buying a house and lot come with steep price tags but which should you prioritize? Does marital status affect mortgage rates, in case you are thinking of getting a home loan? Or what factors should you consider when making your choice? But don’t get overwhelmed by your questions about buying a house before vs after marriage. While the decision-making of when to buy a home is, ultimately, a personal one, but if you and your partner are considering buying a home together before getting married, there are a few unique considerations that you’ll need to keep in mind. Read them below so that you can come up with a buying arrangement that works for everyone involved. And don’t fret! Below are some of the things that you will be needing to help you evaluate the pros and cons of either situation and to get you a better understanding of buying a house before vs. after marriage.
Average cost of weddings in the Philippines
Let’s talk about first the amount of money that you’re going to need to spend for your dream wedding. It’s no secret that weddings are often extravagant affairs. The cost of holding a wedding in the Philippines can reach up to PHP 2 million or more. But if you and your significant other are willing and able to spend such a high amount on such an event, then go ahead and do it, after all, it’s once in a lifetime event. However, if money is tight, a simpler and more intimate wedding is a more advisable option.
On average, Filipino couples spend between PHP 40,000 to 80,000 on engagement rings and at least PHP 30,000 on wedding gowns alone, according to a survey by Home Credit. On top of that, couples also like to spend around PHP 30,000 on invitations and giveaways; around PHP 10,000 on pre-wedding photography alone, and another around PHP 15,000 for a pre-wedding video. While the cost for the caterers or the wedding reception, in general, would entail around PHP 50,000.
The costs shown above are not meant to dissuade you and your significant other from having the wedding of your dreams. But just to show you a glimpse of an idea about the amount of how much a wedding would cost in the Philippines. Again, if you can afford to splurge or spend a big amount of money for your dream wedding, then go for it. However, if you both have only a little amount in your savings, it would be better for you to have a more modest wedding. You don’t want to go bankrupt after your wedding, right? So spend wisely, even though it’s a once-in-a-lifetime event, you should always keep in mind to spend within your means. A lavish wedding celebration isn’t worth celebrating if you have to rack up high debts just to pay for everything that comes with it.
Average cost of a house in the Philippines
If you dream of having your own house and lot at an affordable price, worry not for Bria Homes offers a wide range of selections to cater to your needs. This real estate company offers high-quality homes for as low as PHP 1,897* per month, it’s their goal to aid the Filipino people in their pursuit of a home that they can call their own. Not only that, Bria Homes provides house and lot packages that range from around PHP 460,000 to PHP 1.5M while its condominium units range from PHP 1.5M to PHP 3M, all at a reasonable price. Bria Homes also give their clients different funding options (PAG-IBIG Funding or Bank Financing) to finance the latter’s home application thereby helping them to ease their load of paying for their dream home.
So if you and your significant other are saving up for your own home, it might be better to postpone your dream wedding until you have enough money. Or if it’s possible, celebrate your wedding in the most intimate manner with just the closest people in your life, hence, saving up a ton of money for your dream home.
Buying a House Before vs. After Marriage
Marriage status is not the most important factor which couples should consider when deciding when they should buy a house and such marital status doesn’t affect mortgage rates. Instead, the couples should put their focus on assessing each other’s financial capability, or credit standing, more importantly creating a realistic budget and considering any worst-case scenarios regarding their relationship. Spending a lot on a wedding celebration and paying for your future home at the same time might lead you to a more difficult situation. Because ideally, you and your significant other should focus on what matters in the long run, given the current pandemic.
So how do you choose between buying a house before vs. after marriage? In order to make the soundest decision, there are certain factors that you must take into account.
Qualifying for a mortgage
Applying for a home loan is ideal for couples who wish to settle down in a place they can call their own without shelling out a huge amount of money or going bankrupt. So one of the important considerations to keep in mind is whether or not you will use both of your incomes when trying to qualify for a mortgage. However, be it noted that your marital status won’t make any difference in applying for a mortgage.
Buying a house before vs. after marriage depends on several different factors but every situation is different, and so as to whether or not the two individuals purchasing a home together are legally married does not really make a huge difference when determining the loan amount they would be allowed for and the interest rate. Banks usually underwrite each individual on the application, whether or not the applicants are married. The banks don’t look at each person individually so from a credit score standpoint, it doesn’t really matter whether they are married or not.
Rather, the decision of qualifying for a loan or mortgage should be based on the strength of your financial profile. If both of you have similar credit scores and levels of debt, it’s probably a good idea if you apply together. Having two paying individuals on the application will increase your chances of being approved. On top of that, you will probably be approved for a higher mortgage amount if both of you apply jointly than if only one of you will apply. But the downside is, if one of you has a significantly lower credit score or a significantly higher level of debt, you might want to reevaluate if applying jointly would still be beneficial for the both of you because in this case, it might not be the best idea.
Pros And Cons Of Buying A House Before Marriage
A lot of pros and cons of buying a home will be applicable whether or not you are married. Literally, anyone, married or single would be excited to have a place that they can call their own. However, before you get too excited, keep in mind that when you buy a house before marriage, it has its own advantages and disadvantages that you might not want to surprise you out of nowhere. So keep reading to learn more about the pros and cons of buying a home before marriage and see if it could be the right choice for you.
Pros:
- High possibility of saving rent money.
Rent around Metro Manila can be very pricy and expensive nowadays. A decent apartment in a nice and quiet environment could cost at least PHP 15,000 to PHP 25, 000 depending on the location in Metro Manila. Moreover, when real estate properties continue to appreciate in value, the more you rent on these properties, the more you waste money on something that will never be yours. Not only that, but if you two are still living separately, it means that you are paying two rents that neither of you can own or recover any value from the total payments that you have made. So combining your living costs in one shared mortgage could save you money not just every month but in the long term also. But if you really need to live within Metro Manila, you could try the rent-to-own offers of some condominiums. Here, in case you can’t afford to pay after several years, a portion of the amount that you have already paid can be recovered.
- Build equity sooner together.
Getting into a home sooner with your significant other means you can start building equity sooner. After all, the longer you wait, the more likely home prices are to increase due to its appreciation feature.
- Dual income to split utilities.
By moving into a home together with your significant other, not only can you split your monthly payments, but you can also split utilities with them. Saving on living costs can be a smart financial decision that you two could make. Perhaps, living under one roof could help you save up for your dream wedding.
Cons:
- Financial entanglement.
One of the cons is that getting a home loan or a mortgage with your significant other can put a financial strain on the relationship, as money issues are often a top cause of arguments. But if you look on the other side of the coin, it’s somewhat a good thing because as early as this time, you can already observe the behavior or the way your partner handles financial problems and similar conflicts. So it’s the best thing to do before combining your finances to get a home loan, make sure you’ve talked in-depth about both your financial habits and opinions about money to avoid any long arguments that could hurt your relationship.
- Relationship strains.
As mentioned above, living under one roof before marriage may cause relationship strains for countless reasons, and one is financial habits. A lot of causes could be a starting point of conflict. It can start as even as small as something like if for example, if one person always turns the aircon on and the other never does increased utility costs could be a point of conflict.
In summary, if you decided to buy a house before marriage, it can help you build equity sooner and possibly save on expensive rent prices around Metro Manila. However, the commitment to paying a home loan may cause relationship strains over finances or responsibilities.
There isn’t one right answer for this question: buying a house before vs. after marriage. The answer is highly dependent on different circumstances that can affect your decision. Evaluating the different factors on when is the smartest time to buy a home would be very beneficial to both of you, after all, it is a personal decision that you and your significant other should think about, keeping the long-term effects for your future.
