So the time has come to upgrade your house. But should you buy first, or sell your existing place first? It’s a tough choice. We’ve made the decision (slightly) easier by setting out the key pros and cons.
Buy first
The good points
If you see a place that you know is just right for you, or that has truly unique features, you can grab it now knowing you won’t miss out to other buyers.
In a rising property market, buying today means beating higher property prices further down the track.
The downsides
You could feel rushed to sell your current home – which might even mean accepting a price below your expectations.
If your home sells for less than its listed price, you might face a funding shortfall.
No one knows what lies around the corner and changes in interest rates or other economic circumstances could impact your ability to pay off your new home.
The danger zone
It might take longer than expected to sell your home. That could mean having to take out bridging finance on the new place while still paying off your current home loan, and that could be a real financial squeeze.
Sell first
The good points
There’s no immediate pressure to sell, so you can hold out until you receive an offer you’re happy with.
With sale proceeds from your home locked firmly in the bank, you know exactly how much you can spend on the new place.
Stashing your sale proceeds in a high-interest savings account lets you earn additional income while searching for your next home.
The downsides
If property values are rising, you could end up paying more for your new home.
The danger zone
It’s rare that your home will sell in just the right time frame to move straight into your new home.
Unless you can juggle settlement times, you could find yourself officially “homeless” for a period. Even if you’re able to couch surf at a mate’s place for a while, you could face two sets of furniture removal and storage fees.
Need strategic advice for your next move call Amanda today to access her expertise on 1300 861 143
Disclaimer
This information is current as at 19/04/18. This article has been prepared by Heart1Stop, a social media brand owned by Heart Mortgage Services and Heart Financial Advisers. The information contained in this article is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The views expressed here are not those of Heart1stop, Heart Mortgage Services, Heart Financial Advisers, shareholders, directors or staff and associated contractors and business associates. This article has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this article, consider its appropriateness, having regard to your objectives, financial situation or needs. Any taxation information contained in this article is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual’s situation may differ, and you should seek independent professional taxation advice on any taxation matters. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of Heart1Stop or Heart Mortgage Services and Heart Financial Advisers that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party of Heart1Stop or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties ("Third Parties") who are not related to Heart1Stop. These links are provided for convenience only and do not represent any endorsement or approval by us.