Buying your next home

Buying your next home first

If a house that ticks all the boxes comes on the market it can be hard to resist putting an offer on it, especially in a hot market with lots of competition.

Owning two homes

If your offer is accepted you may find yourself in the position of owning two homes. Unless you can align the settlement dates on the two properties perfectly, you’ll find yourself in a position of needing to service two home loans.

Owning two homes can also have insurance implications as you’ll need to have both covered until you can hand over ownership of the property.

If you're planning to buy first, you can make the sale of your existing home a condition of your offer. While this takes the pressure off, it may also make your offer less attractive.

Negotiate a longer settlement date

Alternatively you could try to negotiate a longer settlement when you buy the new house, which will give you more time to sell. Discuss options with the real estate agent to find out how you can negotiate an offer that the seller would still be happy with.

There's no perfect solution in this situation, every purchase or sale is a unique experience. If you’re starting to think about buying, it's a good idea to get your current home and finances in order. Talk to one of our team and give them an indication of your plans so we can help find a solution that works best for you.

Know the market

Is it a sellers’ market?

Whether you’re planning to sell or buy first, start talking to real estate agents in your area to find out what might be coming on the market, and ask them for a market report to see whether there is a current demand for a property like yours.
 

Start your house hunting early and watch the market regularly

If your needs are quite specific, you may find the type of property you’re looking for doesn’t come on the market that often so you should prepare your selling strategy based on this – will you be left needing to rent if your home sells before your next property comes up? Put in a contingency plan in case you sell before you can buy – would you need to rent, or could you stay with family short term? Are there pets you need to consider? It can be harder to find a rental that allows pets so all of these factors should be considered before you put the ‘For Sale’ sign outside.

Preparing to sell

Tidy up and declutter

Now is a great time to start tackling all those jobs around the house that you’ve been putting off. Prepare your current home for sale – tidy the garden, declutter and touch up paint where needed. It can be handy to have a friend pop round and get them to tell you what they see – this can help to determine what your perspective buyers might focus on. Look at your property through the eyes of a potential buyer.

Review your home loan

When it comes time to sell your home, you’ll want to try and achieve a maximum profit. If you’re thinking of selling, increase your home loan payments to build up your equity. When it comes time to sell, more of that sale profit can be converted to cash. Consider what your budget allows – can you make extra one-off payments, pay a little more on your scheduled payment or change your repayment frequency to help pay off that loan faster.