- 7 Apr, 2015

Should I Buy a New Home or Sell My Existing Property First?

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When it comes to buying a new home and selling your existing property it can be confusing as to which to do first. Most property experts suggest that you sell your existing property before buying a new one, as this is a less riskier option. However, in saying this, many people do buy before they sell.

Selling Your Home Before Buying

This approach reduces financial risk and is typically considered as the more sensible option in a buyer’s market.

The benefits of this tactic are:

You know exactly how much you can spend on your new home.

You have no pressure to sell.

You won’t have to finance two home loans.

The disadvantages are:

It may take longer to find a new home, so you may have to rent.

Property prices may increase and you may find it harder to get back into the market.

Buying a Property Before You Sell

Buying a new home before you’ve sold your existing property can increase your stress levels due to additional financial commitment. If you’re considering this approach then it’s best done in a seller’s market.

The advantages of this option are:

You can find the perfect property.

Your property may sell for more.

You only have to move once.

The disadvantages are:

You can overspend on your new property because your old home may sell for less.

You may accept a lower price for your old property because you want a quicker sale.

Your short-term financing options may not be suitable long-term.

Before you make a decision, review your finances to see if you can afford to buy before you sell. Do the math, and if you need help contact a mortgage broker.

Looking to buy a new home and sell your old property? Then contact eChoice, our brokers have access to 100’s of products, so we’ll help find you a competitive mortgage rate.

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