Buying or selling a property on the Northern Beaches (or elsewhere) is never an easy decision.
After all, a property purchase is one of the most significant investments a person can ever make. Conversely, selling a property can be just as difficult, depending on real estate selling trends and the seller’s circumstances.
If you’re tempted to buy real estate in the Northern Beaches now, with the thought of selling your current property later, you might just be on the right track. Some property research experts predict that property price increases are likely to happen sometime this 2021.
But if you’re not sure if what you’re planning to do would be a wise move, here’s a bit of real estate advice you can use.
Reasons to buy first and then sell
Over the summer, some people might be reflecting on how and where they want to live for the long term. If real estate prices are on the rise as projected, now is as good a time as any to lock in a lower price on a property you want. You can then wait for your home to sell at a higher price.
Of course, buying a home before selling your existing one comes with risks. A premature purchase can, after all, affect the manner by which you sell your home. You might end up selling your home at a less desirable price or taking another mortgage to fund your new property purchase. It’s wise to get the advice of your real estate agent first as they’ll have a good overview of your market.
However, there are certain conditions that can make buying a new property before selling your current home a profitable decision.
- Property prices are rising.
- Demand is starting to exceed supply.
- You’re certain your property will fetch a high price or be in great demand.
- You’re able to work out a longer settlement period for your new property or set a condition that ties it to the sale of your current home.
- You’re in a position that allows you to manage two home loans easily.
- You have enough equity saved up on your old home.
With any of these conditions (or even a combination of these) present, then you can just follow the real estate selling rule of buying a new property before selling. This way, you’re likely to purchase your new property based on current rates. You can then wait for the most opportune time to sell your property at a higher price and not be forced to sell it prematurely.
Questions to answer
So, again, the question: Should I buy a property first before selling my property?
If any of the aforementioned conditions is present, then the answer is ‘yes.’ However, there are other questions you need to ask yourself before pushing through with your buy-before-sell strategy.
- Are you ready for all risks?
- What do property analysts say?
- Why do you need a new property?
- Do you really need to move?
- What’s your property selling timeline?
- Do you have a contingency plan in case something goes wrong?
Buying and selling property are both complicated processes that require a lot of thought and calculation.
Just keep in mind that rising property prices can mean now is a good time to buy.
Buying and selling a property can be stressful, even when you’re excited about the process. At JDH, we’re here to help you navigate the processes of buying and selling, with a good overview of the Northern Beaches market conditions. So please call us for advice before you leap into uncharted waters.