Why do big life events – marriage, birth of a child, graduation – always seem tied to huge financial events, such as buying a new house or new car? It means that we experience major emotional upheavals just as we’re trying to navigate a new money challenge.
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Some couples have decided they don’t want to take it anymore. Instead of getting married and buying a house simultaneously, they’re putting their wedding off so they can take full advantage of this appealing real estate moment. Renia Lusby, 26, and her fiancé, Kristopher Butler, who live in Humble, Texas, started looking for a home as soon as they got engaged last September. “We noticed it would be more financially responsible for us to put one or the other on the backburner,” says Lusby, a special events planner for the University of Houston.
They prioritized their home purchase because they could take advantage of the homebuyers’ tax credit as well as the low interest rates and relatively low prices. They purchased their three-bedroom home in May and moved their wedding to next July. “Now we can take it slow and enjoy [the planning],” she says. Changing up the order also means they can save on nuptial costs, by inviting family members to stay in their new home instead of renting rooms at local hotels.
But buying a home before getting married isn’t for everybody. The biggest risk is that the couple breaks up before the wedding, which could put them at risk for losing a lot of money. Here are some potential pitfalls to watch out for:
In Lusby’s case, she and her fiancé put the home in her name, but plan to add his name as soon as they marry. Her advice to other couples? “Stay focused,” and don’t forget to take time to enjoy the process of both home-buying and wedding planning.