Have you ever wondered whether you should first buy that dream home before selling your current house? It’s a question that you have likely lost sleep over.
As a homeowner you will likely look to move or upsize at some point. Many homeowners choose to first sell their property and purchase another with that equity.
However, it may be in your interest to first buy a new property and then sell your existing one. Knowing whether to first buy and sell later, or vice versa, could save you some time, energy and money.
3 reasons to buy your dream home before you sell
1. When the perfect deal is yours
Buying a house can be frustrating. You may have searched for months for your dream home to no avail. But sometimes, the perfect deal comes along and if you hesitate, the opportunity may pass. A property that is being sold at a fraction of its worth may become available, a seller may need to urgently relocate or they may have found their dream home. Whatever the circumstance is, the seller is very eager to sell.
You have the opportunity to get a very good deal. It makes sense to buy first and sell your home afterwards. Waiting can cause a missed opportunity. The money you can make from such a deal outweighs making double payments on two homes for a short period of time.
A great deal is worth the small risk of buying first.
2. A smooth transition
If you have ever moved house you know that it can sometimes be a hassle. There is a ton of organisation, boxes everywhere and not to mention the cost of moving companies. It involves time and lots of energy. If you sell your home without securing another, these may be some of your realities. Putting all your furniture into storage or having to rent while you wait to sell your house can be stressful.
Buying first will save you having to find alternative accommodation while looking for a new property. Your new home will be ready to move straight into, giving you peace of mind through the whole process. You don’t have to worry about your furniture or any additional storage costs.
Buying first can reduce added stress so that you have a smooth transition into your new home.
3. It’s your dream home
While purchasing a home should be a logical and financial decision it does comes with its own emotional weight. In a buying market, property moves quickly. Waiting to purchase until you have sold your own property can mean that you potentially miss an ideal opportunity.
By buying first you are more likely to secure your dream home. You do not have the pressure of making a hasty sale and you can wait until you get the right price for your home. If you are in a rising market you can get a slightly higher selling price than if you sold it from the onset, due to unnecessary pressure.
While buying before selling has several upsides, there are some things you should consider:
- The financial implications. Very few home owners have the capacity to purchase a new home in cash. This means that you would either have to sell your current home first, or take out a loan; the latter being an added financial pressure.
- You may be paying two bonds. If you buy a house before selling there may be a period of time where you need to pay the bonds on both properties. This can turn into a longer period of time, especially if you are waiting for the right price.
- There is an element of risk. One of the biggest risks is that your original home sells for less than anticipated. This can add more financial pressure and stress to the entire process.
However, while there are risks, there are definite benefits that will allow you to have a smooth transition into your new home. Making sure that your property is market-ready will help it sell faster, and will minimise the risk of buying first. While it depends on your circumstances, buying first may be the best choice for you.
Don’t wait to sell your property until the opportunity has passed. Be proactive, make plans to buy your ideal property and make your dream home a reality.