Selling Your Property Before Buying a New Property
Should you sell your property before you buy a new property or is it better to buy first and then sell? Many people prefer to buy the new property first as this makes them feel secure in knowing that they have a place to stay before selling their existing home. This is not necessarily the best option and their is a few things you need to consider before deciding on buying a property before your current property is sold:
Clearer Time Frames
When you sell your property first your time frames become much clearer and you can use this to your advantage when negotiating the purchase of your new property.
After you sold your property you will have a much clearer picture of your financial position and you can make a more informed decision on how much you can afford to use as a deposit for the new property. You will also be able to budget more realistically for your new property.
Property Market Fluctuations
Buying a new and more expensive property before your current property is sold can cause a sever financial crises. Property markets often fluctuate dramatically and you can be stuck in a situation where you are unable to sell your property for the price you require. You may end up with two properties and two bonds that you cannot afford to pay.
Better Offer on New Property
If you sell your property first you will be in a better position to make a clean offer with no conditions attached. This type of offer is usually much more attractive to property sellers and may even be accepted above an offer that is higher but has conditions attached to it.
Better Financial Position
The positive equity realised after selling your property will place you in a financially stronger position and you will have a better chance of having your home loan application approved.
Although all these points make a strong argument in favour of selling your property first it is a decision that you have to be comfortable with and your current circumstances may dictate that you will have to purchase the new property first before selling your current property.
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