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Once you decide to sell your house and before you buy one of those new homes, you need to work out how that will happen both logistically and in a financial sense.

Ready to Upgrade to a New Home?

Once you decide to sell your house and before you buy one of those new homes, you need to work out how that will happen both logistically and in a financial sense.

If you sell your home first, before you go and buy the new home, the benefit is that you can wait for the right price. You can also avoid the hassle and cost of a bridging loan. You may wish to negotiate for an extended settlement that will afford you extra time to make a selection from the new homes available. However, the downfall is that you may not find your dream home before settlement on your old one, and this means that you will probably have to rent. Renting can be inconvenient and many landlords prefer long term tenants rather than the short term lease you will be wanting. The cost to rent will also be unfavourable. Depending on the time frames involved, you risk that property prices rise, which means that you get less for your money when the time comes to finally buy.

On the other hand, buying one of the new homes before selling presents its own challenges. You need to have the necessary finance in place for this scenario to work. You can avoid the cost and hassle of renting and moving twice, however, you may not be able to sell your home as quickly as you’d like and exactly how much you’ll get for it is not known yet. You also risk having to accept a lower price to meet the settlement timetable or to avoid bridging finance.

If you’re lucky enough to time the buying and selling process to coincide, you will be able to happily move house without any pressure. However, this is a fairly rare scenario, and if there are settlement delays, you still may need to consider bridging financing and incur the additional associated costs.

If you’re unsure of what process bests suits your circumstances, then give State Custodians Mortgage Company a call. We can discuss your borrowing capacity as well as what loan type best suits your strategy.