By Darren Law
When considering buying your next home there are many options and we have broken the main ones into four categories:
- Bridging Loan
- Buy/Sell in the same market!
- Sell and rent it back
- Retain existing property (now an investment)
Buying real estate can be exciting! However, if you are selling and buying in the same market, then timing, time pressure and other factors can become worrying. Before you start this process, we usually dive into the pro’s and con’s of each scenario and find which structure will suit you best.
Sometimes you find your next home before you find new owners for your old home! This is where a bridging loan can make a lot of sense. A bridging loan allows you to buy your new property and gives you up to 12 months to sell your old home. This can, in turn, negate the pressure of having to try and buy & sell at the same time. Bridging loans can have another layer of complexity as they are certainly conditional so please allow extra time for finance and get in touch with us before you start shopping.
Buy/Sell in the same market!
If you’re lucky enough to buy and sell your property around the same time then we may be able to arrange settlement on the same day. In this scenario, we can simply transfer the equity from on to the other.
Sell and rent it back
Renting your home back from the new buyers is an ever-increasing popular pick! This negates the need to rent or stay with friends in that often awkward transition period. It can be negotiated with your real estate agent (advised) or with a private treaty with the new owners of your old house. People are often more flexible with terms of these arrangements prior to settling the property.
Retain existing property (now an investment)
Depending your financial goals and desires you may wish to retain your old property and rent it out, thus becoming a property investor! Buying and selling property can be a very costly transaction after you factor in agent costs, stamp duty, fees, insurances and moving costs.
Whatever your situation, we’ll be here to assist you with your finance & you can feel at ease that you’re in safe hands.