Buying an investment property or upgrading from your first home, is a goal for many Australians. A lot of us buy or build a first home knowing that it is a stepping stone to something bigger, maybe to accommodate a growing family or just provide some extra space.
One of the considerations during this process is whether to buy the new home before selling the first, or to sell your existing home before buying a new one. In making this decision you’ll need to have a good understanding of the market in which you’re buying and selling. So, ask yourself these questions:
• Will my home sell quickly if I commit to buying a new home?
• Will I be able to get finance to buy the new home?
If there is strong demand for properties in the area you currently living in, you might be able to buy a new property knowing that when it comes time to sell your own home there will be plenty of potential buyers.
It can also be worth negotiating the settlement time frame with the person selling the home you want to buy, which may give you more time to sell your own home. The seller may not wish to move out straight away or it might be an investment property with a tenant who still has a current lease agreement.
When it comes to financing the purchase of the new home if you have enough equity in your existing property you might be able to get a bridging loan. This is a special type of loan designed specifically for people buying a new home before they have sold their existing home.
This could be the way to achieve that second home or upgrading to a new home.
To find out more on how you can purchase an investment property or refinance to upgrade to a new home give Yellow Brick Road at Penrith a call on 02 4721 1003 or fill in the form and we will contact you.