Selling your Property


SELLING YOUR HOME TO BUY ANOTHER FOR YOU TO LIVE IN?

WOULD YOU LIKE TO KNOW IF THIS IS A POSSIBILITY FOR YOU?

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.
  • 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
  • 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.

RELOCATING

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.

It would be good to do your research so that you get an indication of the rental income you can expect for the price bracket property you are hoping to purchase. Generally you need 20% deposit to purchase an investment property. This can either be saved deposit or equity from an existing property Different areas in the country have different price brackets and property incomes. The rents can be substantially higher in one area compared to another for a similar price property.

The Positive Side is - You know you have your home to go back to

The Negative Side – 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.

 

Get in touch with Home Link Finance today for a free no obligation chat