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Moving From One Home to Another in a Hot Market



Looking to upgrade or even downgrade your home? Chances are there might not be much in the market! The current market we are in means that it’s really easy to sell a home… but not so easy to buy, and therefore many people are choosing to stay put.


This makes it harder for those who already own a home but are wanting to make an upgrade, as there’s a decision to be made…. Do you try and buy before you sell, or sell before you buy? Each choice comes with it’s own pros and cons.


If you sell first and then buy, you run the risk that the right house might not come along before you move out. This can put pressure on looking for a home and may lead to purchasing something that you are not entirely happy with. Selling first also means you may need to end up in the rental market, and can therefore be out of the property market with it’s ever increasing values. This can make it harder to get back into the market months later.


Typically, we recommend trying to buy first so you can make the smooth transition between homes, however this also comes with its risks. Lending can be tougher to get, as you need to be able to prove you can service all debt. Rental income can’t be taken into account as much as it has been in the past due to changes in LVR’s and tax deductibility.

Overall, when it comes to upgrading your home, we recommend buying with a longer settlement date, which gives you a longer period of time to get your current home sold or under offer. Bridging finance is a type of finance that is designed for the cross over of properties, and while it is expensive, it allows you to make the financial part of the move much smoother.

If you are looking to go from one house to another, then come and chat with us first. We can make a plan to ensure that you can move smoothly, with no financial stress and you know exactly what you can borrow before you start looking. Each situation is different, so we will tailor a solution to fit you. Contact our team today!

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