A lot has changed since this time last year.
Lockdowns and the growing trend of working from home has resulted in a growing number of homeowners re-evaluating what they want out of where they live, and many are packing up where they are and moving somewhere new as a result.
But trading homes isn’t always as easy as it seems, and it’s worth taking some time trying to figure out the best path for you to take.
It can be hard letting go of a property without another one to go to, so it’s very common for homeowners to buy their next property before selling their existing one.
This can work out quite well because you will have a new home to move into as soon as your purchasing contract settles, so you can avoid the hassle of potentially needing to move twice. However, you will need to get a move along on selling your current home.
The problem here is that many people underestimate how long it can take to sell their current home and it may put pressure on you to sell to the first offer you get, even if its not as high as you would have hoped for.
If you want to avoid potentially juggling the ownership of two properties at once, then it might be wiser to sell first.
Selling your property before buying again is the less risky pathway as you can take your time getting your property ready for sale and securing the best price possible and you will know exactly how much capital you have to invest in your next property.
Of course there are issues you may face in this scenario too. One of them is that you might need to find interim accommodation if you can’t find a new home before your current one sells.
Another potential problem is that property prices could go up if it takes you a long time to buy again, which may lead to having to settle for a property that isn’t as good as you had hoped, but more affordable.
Tips to get the timing right
Work out finances early – Before buying or selling a property it’s always worth having a chat to your lender or another financial advisor to discuss the options available to you.
If your finances allow, you may even be able to keep your current property as an investment property and then you won’t have the stress of needing to sell it quickly, however obviously this isn’t viable for everyone.
Bridging finance may be another way to make the transaction juggle easier. This is a short-term option where a lender will finance the purchase of a new property while the existing property is being sold.
Consider longer settlements – If you want to buy yourself a bit of time you could negotiate a longer settlement period.
This can be useful whether you’re buying or selling first because it can give you the extra time you might need.
Keep in mind though that it can be tricky getting the other party to agree to a longer settlement, and in the case of buying it may make an offer less attractive.
Prepare your current home for sale – Give yourself a head start on the selling process by getting your property ready for sale as soon as you can.
If your property is in good shape and ready to hit the market at a moment’s notice it will make it much easier to list it quickly if you do end up finding a property to buy first.
It’s also a good idea to start chatting to local real estate agents and finding one that can help make your real estate journey as seamless as possible.
If you’re looking for any help buying or selling in outer western Sydney you can contact the Professionals Outer Western Sydney team.