Buying a property is never easy, but if your new home purchase is dependent on your first property selling, it can present a few challenges. Timing is critical and it’s important to know what your options are if the selling and buying process doesn’t go as expected.
Here are some ways you can manage selling your home to buy another.
This is the preferred option when selling your house to buy another, as it means you’ll conduct both transactions on the same day. But, you’ll need to have a buyer ready and waiting for your home when you find your next property. And we all know that it can be tough to find that one property that feels like home. Not only for you, but also the prospective buyer of your existing house – at the same time! Any settlement delays on either side can derail this process.
If you have sufficient equity in your current home or savings for a deposit, you may be able to buy your new home first without worrying when your existing home might sell. You’ll also need income that will service both debts comfortably as there are no guarantees when your first property will sell, and the mortgage will be repaid. If the house doesn’t sell, you may consider keeping it as an investment property and receiving rent until market conditions change.
Without equity or income to support holding both properties, you may need to consider holding off on your property purchase until you’ve sold your home. This means you’ll need to consider where you’ll live once your home has sold, and whether it will be suitable until you find your next home. You may be able to negotiate with the buyers of your home to rent the house from them if they’re not intending to move in straight away. Your other options include renting elsewhere or perhaps staying with family.
Get in your new home sooner
To make the transition to a new home as smooth as possible, it’s important to do your homework and have a plan. You’ll also need to consider the costs involved with selling and buying to ensure you have enough funds to complete the transactions.
Call Yotta, our Director, Lending Products, on +61 2 9278 9700, to chat about getting you into a new home sooner. Or send us an email.