A New Twist on Marriage and Homeownership

For the boomer generation, which holds the majority of homeownership wealth in the country, buying a home after getting married was the standard sequence of building a life together. Today, it’s not so automatic as it used to be. 

As affordability has declined, today’s young newlyweds are having a hard time seeing a home purchase as the next logical step. So, maybe it’s time to view the relationship between marriage and homeownership in a new way. We’ll go as far as to ask: how can your wedding pay for your home? How about the other way around? 

In this article, you’ll find three ideas for how your wedding goals can go hand in hand with your homeownership goals. 

Registering for a Down Payment

It’s been a while since wedding registries included china sets and dust ruffles; cash gifts have never gone out of style, but it’s a pretty new concept to find a fundraising campaign in lieu of a registry. Instead of sticking cash in an envelope, online platforms like Zola, The Knot, and Joy have made it easy for your guests to contribute to a gift fund. (In addition to housing all the information your wedding guests need to manage in one place).  

While the thought behind gift funds is typically flexibility for the couple to purchase their own household items, contributing to the honeymoon, or paying for the wedding, we suggest that it could make a significant impact on your ability to buy a home.  

The typical cash gift today averages around $150. If you have a 100-person wedding, and cash were the only thing on the registry, you would end up with $15,000. Put that into the perspective of your future home… You have the minimum down payment on a $350k condo or townhome with funds to spare for closing costs. 

Even if your wedding registry doesn’t cover your dream home in the immediate future, it will in the long run. Starting with something small today, like a condo, will help you build wealth in the form of equity. This means affording your dream home sooner. 

Wedding Funds From Family

Some parents put aside funds for their children’s weddings. If this applies to you, talk to your family member about putting your wedding fund toward the down payment on a home. For some, kickstarting a secure financial future for their child is more gratifying than flying in cousins who you’ve only seen once in the last ten years. For more information about how gift money works, check out solution three in this article on down payment solutions for first-time buyers.  

A House Warming Wedding

It’s not uncommon to hear of a $30,000 wedding. Now, consider that $30k equals 5% down on a $600k home. And a $600k home, depending on your geographic market, is usually just the kind with a beautiful backyard to get married in. 

There are all sorts of dream wedding venues, and if a backyard isn’t high on your list, you may want to consider the dream of building wealth with your new forever partner. Then, getting married in the backyard of your very own home doesn’t seem like such a bad venue choice after all. 

A Final Note

We often hear from young couples that their first marital financial plans are to tackle debt, especially student loans. Talk to a mortgage banker before you decide that homeownership is not feasible until your debts are paid off. You may find that purchasing a home now could help you pay off your debt for less in the future.

If you are considering homeownership as the next big step in your and your spouse’s life, fill out a pre-approval form to start the conversation!