Moving houses is a big deal for any homeowner. It’s a change, after all, and can often prove to be a very challenging one—more so if you’re looking for a house while trying to sell your current one at the same time.
People would often think of the problem as a choice between buying a house now, then selling your current one or selling first, then buying the new one. Each one will have its pros and cons; buying first might limit the house you end up with while selling first might make logistics difficult for you and your family.
Selling and Buying At The Same Time
While it may seem difficult, a lot of homeowners have found ways to do both at the same time, or as close to it as possible. Let’s take a look at the different strategies you can take.
Generally speaking, most people in this situation are aiming to:
- Sell their current house at the best price available
- Buy a new house for a reasonable cost
- Go through the process as efficiently as possible
The first thing you should do before anything else is to assess your current home. Look for any signs of wear or damage. What you’re trying to do is to assess it to see how well it can be sold. Take this time to look for repairs or small renovations you could do to increase the value of your home.
Once you’re ready to sell the property, look for contracting tools you can use in your Contract of Sale like the Sunset Clause. This clause helps homeowners settle both transactions (buying and selling) at the same time by only finalizing the sale of your old home once you’ve found a new one. Of course, it isn’t as simple as including this clause in the contract. Any delays in one contract can affect the other, further delaying the process and potentially causing you logistical problems.
This is why bridging loans have become a popular option for people in this situation. Bridging loans help homeowners with a small gap in their finances by providing the “bridge” in that gap for the short term.
If you prefer selling your current home first, you should have already considered living in rented homes in the period between the sale of your old home and the purchase of your new one. This will add costs to your total moving expense. That said, if you’ve already made plans in this direction you should be fine.
An alternative would be to talk to friends or family. This might prove to be a cheaper option, especially if they let you stay with them for free. Storing your items may prove difficult though, so consider renting a storage space.
Understandably, others will want to make sure that they’ve already purchased a home before selling their current one. This requires a lot more financial freedom on the homeowner's part as this means that you will have capital still locked into your old home.
This requires a little more discipline as some people have taken this route only because they found their “dream home”. While it may be appealing to you at the moment, seeing it through the lens of debt might change your mind.
The bottom line here is that it all depends on how you manage your finances and how you balance that with your needs. Moving houses is an exciting moment in anyone’s life— just make sure you don’t let your emotions get the best of you.
Wealthy You is a trusted mortgage broker in Sydney that can provide you with loan solutions that fit your needs. Contact us today to learn more about our loan services!