Should I Buy First or Sell First?
Property buyers always seem to face this dilemma (unless of course they are savvy investors who know the grind): whether they should sell their current home before they buy or should they buy first and sell their current place on a later day?
Should you buy first or sell first?
I think the answer to this question would depend on your risk profile and skills of risk management. Those who are averse to risk like to sell before they buy; the strategy helps them in determining just how much they have to play with when they make their buying negotiations.
Contrarily, if you can soak risk well, you can look forward to buying before you sell your existing property. If the market is rising, you are likely to sell your property at a higher price if you keep it longer.
A lot also depends on your reason behind selling
Of course, a lot also depends on your intention behind selling. If you are moving to a new place it is always advisable to buy first. Same may be the case if you have health concerns. After all, you do not want to sell and become temporarily homeless (or a temporary tenant) when you know your health won’t allow you to conduct an expansive property search.
If, however, everything is right and you are neither cash-cramped nor health-cramped (or for that matter moving to a new place), you can look forward to purchasing a property (today is always the best time) leaving all the concerns of selling for a later day.
Keep an eye on the settlement date of your present property
Remember, if you have already sold your current property, your prospective seller (owner of the property you are buying) will push you hard on the negotiating table. He is secure in the knowledge that you cannot keep delaying the purchase no matter how long drawn-out your sale contract is.
In such case, the fear of being temporarily homeless is always there unless you are an astute investor with a portfolio of properties. Can this happen, you may think? Answer- Even if your conveyancer made you a contract that allows you to hand over your current property in 3 months’ time, what’s the guarantee you can secure a new one in the period? Think!
It might be wise to rope in a seasoned buyer’s agent who helps you make the right decision and also finds you a “capital growth” worthy property in quick time. Feel free to contact me. I will be glad to help.