Selling your home to buy another for you to live in?
There are lots of different reasons to sell & buy
NEEDING MORE SPACE
- Should you buy first or sell first?
- Should you sell at all?
This is an individual decision and it is possible that
- Your property sells and you buy the home you are wanting to buy
- Your property sells but someone has invoked an ‘escape’ clause which means you miss out on the proposed purchase leaving you homeless or renting for a while
- Your property doesn’t sell so you miss out on your ‘dream home’
It’s always about the timing and sometimes it takes longer to sell your own but there is a deadline to buy the new property
Bridging finance can be available to give you time to sell your home
The new property could be rented out (if the finance can be available for this option, depending on your situation) Once your home sells you can then move
There is always a solution in the end. The timing may just not have been right and an even better property turns up or you end up being happy to stay in the existing property for unforeseen reasons at the time
Depending on your situation you may be better to
- Sell first, have a long settlement to give yourself time to find a suitable property knowing that your home is sold and you know how much money you will have toward the next purchase.
- Find another home, rent it out while selling your home so that you have the next property secured at the best price. Then move into that home once you sell.
In this case it may not be your choice to move but need to because of work commitments. If you are not sure if the re location will work out then it may be worth considering renting for a while in the new location and renting out your home until you are sure.
- Positive- You know you have your home to go back to
- Negative – It is always harder to sell a home when it is tenanted
Buying another home and turning the existing into an investment property
- A pre approval will help you buy with more certainty and the bank will put in a condition that states the loan is subject to the sale of your property at $X.
- Find another home and keep your existing one as a rental (saving you in real estate fees). Potentially giving you some great tax benefits
Even if you don’t want to become a landlord it may be well worthwhile to buy another home in the current market and hang onto the existing one until prices increase (as they inevitably do). Then you can make a substantial reduction in your mortgage in the future.
This would be great time to review your financial situation.
Contact Homelink Finance to consider your options.