Should I Sell My town house first Before Buying? Or vice-versa
I saw few forum and mixed opinions about this topis. But can’t decide what should I do. Need some help from OzB’s
Existing [Sydney-North-West Area] trying to get close to City.
Should I Sell My Town House First before Buying? or Vice-Versa
Poll Options
- 10I Sell existing First before Buying?
- 4I will buy first and sell existing?
Comments
sell when bloom buy when gloom
You should become a stock analyst.
i wish but destiny says not
stay when doom
your poll only has one option!! Looks like a Middle East election
Yes, if you get a good price for it, say $1 million above the market value.
The only answer you can get is if you can get the money to buy another house while keeping your old one then that is the best way, most people have to sell there old house to have the money to buy another, I was lucky, very lucky that I sold mine the same time as i bought another :)
Mick123 - Sorry I wanted to keep two options but I can't do that ///
I Sell existing First before Buying?
I will buy first and sell existing?AMLagonda- Yes you are too lucky …
Poll fixed
depends on how popular your property is, and the property you are after. Sydney market is cooling a bit but prices are still firm, many greedy vendors are passing-in their properties at auctions.
If you are confident your property can fetch a good price, or your neighbour recently sold theirs etc… you can afford to buy first then sell or else its better to sell then buy.
Unless you can afford to pay for both - get a buyer first.
I think this really needs more information! Could you afford to rent out your current townhouse (ie - not sell it) and purchase another home to live in?
Probably be yes, however I dont want to pay capital gain tax as value of the property increased around 35-40%
If it has been your main residence (principal place of residence - PPOR) the whole time and you don't have another PPOR, you are exempt from CGT
Keep it and raise against it and end up with 2 properties. Seek proper financial advice for your position. It is expensive, but if at all possible, makes you richer.
It's hard to say and dependent on circumstances… With young kids, I wanted to ensure that we had one move, and always had a place to live in.
I bought a place, and then that weekend sold my place with the intention of extending settlement and / or using finance trickery (it pays to have a good broker here). But during the cool off period, the vendors of place I bought started getting up to shenanigans. Stalling tactics, found illegal modifications to the house, deceptive details in the contract, that sort of thing (it pays to have a good legal representative and building inspector). It turns out that in the past 12 months or so, they had "sold" the place 2 times already and in both cases the buyer had forfeit their 10%. Thanks to our legal guy, we exploited something illegal in their contract, rescinded, and got our 0.25% back… (they then attempted to sue the REA for their loss, but that's another story).
Fast forward 2 weeks and we bought another place. This time an ex-display from a builder. So we got a simultaneous settlement by negotiating with my buyer and the new vendor. My buyer was an investor and had no specific time frame, and the vendor had held the house for 18 months, so had no issue either.
I rented my old place for 1 week so that I could make the move without rush (and for the $500, it was worth the peace of mind).
If this is your home, decide how much emotion plays a part.
We seem to buy houses before we sell, because we find the 'perfect' place and must have it.
This is a terrible way to buy properties, but the upward march of house properties has meant we haven't suffered for it.
If you can be more analytical about it, it is much less stressful to sell first. Make the sale conditional on a long settlement period to give you a good time to find a new place.
Worst case is you move into a rental while you look.I also agree with the posters saying keep the original property as an investment if you can refinance and work the dollars.
I'd much rather buy before selling. The catch is you need to be able to afford to hold both if you can't sell. I've done this twice now and it is so much easier for the moving side of things. No need to be out and cleaned up at the same time you are moving in. You can take a couple of days to move out if necessary.
The first time we kept the old house as an investment, so had a couple of weeks to get it ready to rent. This time we were selling during the settlement period for the new hous. Disadvantage of that was that we needed to keep our old house tidy for sale while we wanted to be packing up and leaving boxes around everywhere. Fortunately our old house sold nice and quickly so we only had a couple of weeks in the pre-sale/pre-move holding pattern.
If you have to wait to sell before you buy you might have to rush to find something to buy that you aren't happy with, or worse still move twice with a rental in between selling and buying. I know some people who have done this and it wasn't fun for them.
My brother bought first. Then, on the same day as buying, went to an auction for a townhouse exactly the same as his and approached the second highest bidders and explained he was selling his townhouse and did they want come around and look at it.
They did, they had some beers, agreed to buy and (with paperwork done)paid what they were going to pay for their unsuccessful auction attempt.
Excellent strategy. The auction attracted buyers. It was like a "buyers market". My brother could shop for the buyer. Hard work done.
More poll options please…can't see my answer there yet.
Some say you should never buy before you sell but that's not always the way things happen…it would be good if both happen within weeks of each other and you do have the option to include a longer or shorter settlement in your contract to allow you more time to find what you want.worst case if you have to move out is renting for a while.