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Is it better for a couple to buy a house together; forfeiting (I believe) one of their First home buyer's grant. This way both put into the loan and it gets paid off much sooner resulting in less interest paid.

The other option is for each person to buy a house separately and live separately for a year. After a year, one of the people, move into the others house and they start to rent out the now unoccupied house. This way the couple take advantage of both grants, now 'own' two houses, have an income from renting it out, but pay twice as much in loan repayments for a longer time, although negative gearing may come into it?

So not sure which is the better option financially. Are there other factors and variables that need to be considered? Like if you stop living in a house and start renting it out do you have to change your home loan to an investor home loan (which is much higher interest)?

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  • What country are you in, what's the first-time buyer grant you have found?
    – Hart CO
    Commented Jul 1, 2019 at 3:05
  • Australia, 10k or 20k for rural
    – Aequitas
    Commented Jul 1, 2019 at 3:08
  • Can you define what you mean by "better?" The "better" situation on paper from a strict numbers perspective may have very different implications than the "less better" one, in terms of things like your risk tolerance or the time you're willing to invest into being a landlord.
    – dwizum
    Commented Jul 1, 2019 at 13:49
  • Also - although I'm not familiar with the specifics of the home buying grant you're talking about, make sure you read the fine print. Many first time home buyer grants are very specific about terms and would typically rule out you using the grant to purchase a home you then rent out and treat as income property.
    – dwizum
    Commented Jul 1, 2019 at 13:50

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have an income from renting it out

And pay property taxes, regular maintenance, emergency maintenance (RIGHT NOW because it's flooding the house!), repairs when the tenants trash the place, continue to pay the mortgage even though there's no tenant...

but pay twice as much in loan repayments for a longer time

You're paying twice as much to get twice as much.

Are there other factors and variables that need to be considered

Like if...... you two break up!! There are more questions on this forum than you can imagine about POSSSLQs1 buying a house together and then breaking up.

IT NEVER ENDS WELL.

If you two do decide to buy a house together, make the hard choice to write up a "partnership agreement" (because that's what it is...)

  1. Who's ponying up the down payment (or what fraction are each of you contributing)?
  2. What fraction of the mortgage are each of you contributing?
  3. What about repairs and maintenance?

All that factors in to how much equity each party accumulates.

And it'll insult your POSSSLQ. (Prenups are a big factor in fiances breaking up.)

1Person of the Opposite or Same Sex Sharing Living Quarters.

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