The Big Conundrum …. To Sell First or Buy First?
This is the big question every second home buyer is faced with. Both have positives and negatives and in many cases the decision on buy or sell first will largely depend on the type of personality the people involved have. Conservative personalities want the security of knowing where they are moving to first and then selling second. For others it’s a case of playing the percentages and understanding what stage of the cycle the market is in and basing the decision on the financial advantages on offer.
Those who buy first generally have a good dose of equity in their current home and the thought of having a “bridging loan” for a period of time between the settlement of the home they’ve purchased and the home they sell is not daunting. Those lucky enough to be in this position can afford to be patient and wait for the right home at the right price.
The one negative of being in a buy first position is these buyers often keep just missing out in a rising market to buyers who are a little more desperate to purchase due to the fact they have already sold. These buyers have placed pressure on themselves to buy because of the upcoming settlement date on their current home and tend to push themselves harder into the pain price barrier.
For those who just consider the financial aspects the general rule is upsize in a falling market and downsize in a rising market. If for example you live in a suburb with a median house price of $800k and want to move to a more exclusive suburb with a much higher median house price a falling market would be a far wiser financial choice than a rising market.
A trusted real estate agent who understands both the cycle of the market and your personal needs can be a vital asset to you when making these assessments. For more details call your preferred iTRAK agent.