The Catch 22: Buy or sell first?

Before making any decisions, take the time to:

• Clarify your purpose. What’s driving the move? Is it more space, a change in lifestyle, or location?
• Get to know your market. Understand trends, the supply of properties that match your goals, and how competitive the market is in your preferred areas.
• Understand your changeover costs. Forget ideal prices for a moment - focus on your bottom line. This number, which stays personal, will give you the freedom to make clear decisions and negotiate with confidence.
• Explore your finance options. Chat with a broker or your local bank to explore opportunities like bridging loans or conditional approvals to give you flexibility.
• Plan your timing. If selling first, negotiate longer settlement terms to give yourself ample time to secure your next home.

For those who prefer a more calculated approach, selling first can be the safer option.

Advantages:

• Provides a clear financial picture, knowing exactly how much you have to work with
• Removes the risk of carrying two mortgages

Considerations:

• The pressure of quickly finding the right property
• The need for temporary accommodation or renting in between

In a market where your ideal home is a specific vision or rarely on the market, buying first could be the way to go.

What you’ll need:

• Access to strong financial buffers or bridging finance to cover both properties
• The ability to manage your current mortgage while you transition
• Your current property ready (or almost ready) for market
• A clear strategy for timing your sale to avoid a lengthy overlap. A longer settlement can give you breathing space for securing a buyer for your home.