What does it cost to buy another home?
As well as the sale price, there are other costs involved with buying and selling property that you need to factor into your budget. These include any repairs, agent’s fees, marketing, building and pest inspections, legal or conveyancing fees, stamp duty, removalists and refinancing your home loan.
Talking to a Home Lending Specialist can help you get a head-start in the home selling and buying processes. They can provide you with sales records, current listings and market analysis of your street, suburb and area. Then, use our home loan borrowing calculator to see how much you might be able to borrow for your next property, as well as your likely repayments and stamp duty costs.
Will you buy or sell first?
There is no right or wrong order – it all comes down to what works best in your circumstances, such as when you find the right property and what your financial options are.
If you sell first, you’ll know how much you have to spend and may have more time to make the sale. You may have to rent until you find or settle on your new home, so don’t forget to factor these moving and accommodation costs into the equation.
If you buy first, you’ll only have to move once. It may be a while until you know for sure what the final sale amount is, but until then a bridging loan can help enable you to manage owning two properties at the same time.
Should you stay and renovate?
Moving is not the only way to get a new home. If you love where you live, you might be better off renovating your existing property.
Work out what you need or want in a home, and whether that may be best achieved financially by renovating. Consider too whether you will refinance your current home loan, redraw, top up or take out a construction loan to fund your renovations.
To be clear about the full costs of renovating, calculate the cost of building materials and labour, architect and/or design fees, insurance, permits and possibly rental costs.