Fridae

Here's some of our top tips on things to think about when you're considering a property investment.

1. Location, location, location

They say the three most important things when buying a property are ‘location, location, location’. For LGBTQ people, this can be extra important, as many of us would like to be in the heart of the cities we love.

Even if there is no ‘gay scene’, we certainly want to be in areas where we can truly be ourselves.

2. The potential extra cost for LGBTQ people

Buying a property in your ideal location is likely to come at a premium - start saving early for a deposit on that dream home.

Recent research indicates that, on average, locations chosen by LGBTQ people for property purchase are at least 20% more expensive than the average.

3. Finding the right mortgage

Getting a mortgage on your property is a very important part of the property purchase process.

It’s easy to get carried away with the excitement of a new home and fail to carefully select the right mortgage.

For LGBTQ people, this is especially important as the majority of us are still not legally partnered or married. So it’s important the mortgage is structured in the right way for us.

4. Insurance

Insurance protection is important when buying a home, especially where a mortgage is involved. You need to make sure you and your partner have adequate protection.

It is important to ensure the cover is right. Make sure it protects both of you, whether or not you are legally partnered. You may also want to protect your possessions.

5. Who owns the property?

The way you structure the ownership of the property is also very important.

In the past, many LGBTQ people with a partner had the property in only one name. That meant the not-named partner had little or no protection.

Even today, many of us are not in legal partnerships. So it’s essential we get this right!

You should make sure the ownership structure of the property is discussed and agreed with your partner. Then, you need to speak with your solicitor and ensure this is reflected in the property deeds. Finally, you should have clear and legally valid wills in place to underpin this, should you or your partner die.

This can be a complex area and it’s important to get the correct advice from someone who understands your situation and wishes.

6. Second property traps

Many LGBTQ people have the opportunity to purchase a second property. You may buy it to let as an investment or perhaps you plan to use it for holiday or retirement purposes.

Taxation of second homes can be complicated, especially for those not in a legal partnership and where the property is rented out.

Again, it’s very important to get specialist advice.

7. Buying a home abroad

For LGBTQ people buying property overseas, there are some additional considerations.

You should remember many countries do not have the same protections for LGBTQ people.

Even if you’re married or in a registered partnership in your own country, you can’t assume you are equally protected ‘abroad’.

When buying abroad, it’s even more important to get correct and up-to-date advice.

8. Is your current property protected?

If you already own a property, don’t assume everything is sorted. You still have an opportunity to double-check that your affairs are structured correctly.

This can be especially important for older LGBTQ people and those who purchased their property when LGBTQ registered partnerships and marriage were not available.