Why you should sell before you buy?

Buying a dream home is a significant milestone for many people. However, it's also one of the biggest financial decisions you'll ever make. It's essential to do so with caution, especially when it comes to buying a new property subject to the sale of your existing property or through bridging finance.

Agents and banks love it when buyers opt for this route as it guarantees them business, but the danger for the buyer is significant. There's always a risk that the sale of your existing property might take longer than anticipated, leaving you with two mortgages and double the interest to pay until the sale completes. This situation can ultimately lead to financial loss and put you in a difficult financial situation.

So, how can you mitigate the risk of buying a new property subject to the sale of your existing property or through bridging finance? The key is to find a buyer for your existing property before you start looking for your dream home, with the help of your agent. Once you've secured a buyer, you can then start searching for your dream home with a clear understanding of your budget.

By finding a buyer for your existing property before searching for your dream home, you can purchase the property subject to settlement rather than subject to sale. This means that the purchase of your dream home is not dependent on the sale of your existing property, reducing the risk of financial loss.

Plus, finding a committed buyer for your existing property gives you a more robust negotiating position when it comes to purchasing your new property. You're in a better position to negotiate a better price and better settlement terms, which can help you save a significant amount of money!