It's a dilemma: you want to move, but do you buy a new home prior to selling your existing one, or do you wait to move until it's sold? Here's what to think about before you take the plunge.
The risk factor
So you’ve fallen in love with a fabulous new pad you can’t live without. Only thing is, you haven’t even begun the process of selling your existing place to fund the new purchase. On one hand, if you buy first your stressful hunt for a new house will be quickly over. And you would have nabbed something before prices jump up or even skyrocket.
However, if your old place doesn’t sell, you’ll be in the dire situation of paying off two mortgages. If you do buy before you sell, you’ll need to offload your place fast if you can’t keep it as an investment.
- Location: research whether your house is in a property hotspot with fast clearance rates
- Address: homes on busy roads may take longer to sell than quiet streets
- Market: assess whether it’s generally in good shape or in a slump
- Property type: apartments often sell faster than houses or other properties
- Condition: if the home needs a lot of renovation it may be a long, hard sell.
When buying before selling, ask the vendors if they can stretch the settlement to 12 weeks. This gives you more time to sell your home.