There are three methods which can be used to successfully sell your property and purchase another property as follows;
1. Sell your current home first, have a long settlement of 3 months or more to give yourself enough time to purchase another property and line up the settlement dates to occur simultaneously or have the purchase settle after the sale. Perhaps negotiate a rent back arrangement on your current home from the new owners to ensure you don’t have to move twice.
2. Purchase the new home first, have a long settlement of 3 months or more to give yourself enough time to sell & settle your current home before or on the same day as the settlement of the purchase. There is more risk here as you have a deadline and need to be conservative on your sale price in case your sale campaign doesn’t go to plan.
3. Purchase the new home and settle with bridging, then sell your current home within 6 or 12 months. This is ideal from a timing perspective, however, is the most expensive. The bank gives you all the money for the purchase property however charges you 5% interest (approximately) until you pay down the debt with the sale.
If you are trying to sell and then buy, please reach out. Tom.
Written by Tom Morison