Moving to a new home means you’re going to have to do something about your old one. But what action will you take? Will you sell it before moving? Or, should you jump the gun and secure a new property while still living there? This is the age-old question that owners can spend a significant amount of time thinking over.
Weigh up the pros and cons of these options to ensure you pick the best one for you.
Buy First – Pros
• You will have a home already secured so you won’t stress if your old home sells quickly.
• May have the ability to use equity in your current loan as a deposit for your new home.
• You can spend as much time as you like shopping around for a new home for sale.
Buy First – Cons
• You might have to organise bridging finance between the two properties, giving you a time limit you have to selling your old home.
• If your old home sells at a less-than-desirable price, you may have to fund the difference in costs.
• You might feel pressured by time and accept a lower offer.
Sell First – Pros
• The proceeds from the sale of your home can be used on your new one.
• You will know exactly how much you can spend on your next purchase.
• Time is on your side, so you’ll have the freedom to negotiate deals and offers for a better price.
Sell First – Cons
• If your home sells quickly, you could be left to make a rushed decision to purchase a new home so you have somewhere to live.
• Local property prices could rise in the time between selling and buying a new home.
• You might have to spend more to rent accommodation while between homes.
Whatever you decide, be sure it is the best decision for you and your family.
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