In the lead up to spring, if you’re thinking of finding a new property and selling your current one, it’s important to be fully prepared. Maybe you’re moving for work, you want to upsize or downsize, or just take advantage of an improved property market.
Whatever your reasons, we take a look at the financial aspects of selling and buying.
What does it cost to buy another home?
Apart from the sale price, there are other costs involved with buying and selling property that need to be factored 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.
You can start by talking to a Home Lending Specialist to get a head start in the home buying process. They will be able to provide you with sales records, current listings and market analysis of your street, suburb and area. Then use a home loan calculator to see what you might be able to afford to spend on the next property.
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 might 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. Financially, there is no certainty on the final sale amount so you may find a bridging loan will enable you to manage owning both properties at the same time.
Speaking to a Home Lending Specialist will help you work through your options.
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 considering a renovation on your existing property.
Work out what you need or want in a home, and whether that may be best achieved financially by renovating. Consider also whether you will refinanceyour current home loan, redraw, top up or take out a construction loan to fund renovations.
Calculate the cost of building materials and labour, architect or design fees, insurance, permits and possibly rental costs to be clear on the full cost of renovations.
Knowing exactly what you want when it comes to buying, selling or renovating your home – and how you will finance it – will help to make the process a lot easier and less stressful.
Thinking about selling one home and buying another? Speak to one of our Home Lending Specialists today.