Empty nesters often ask us: "Should we buy before we sell our current home to downsize?"
A common question we often get asked by empty nesters: Should we buy before we sell our current home to downsize? Here are some things for you to consider:
The main advantage of buying before you sell is that you have certainty that your new home will deliver exactly what you’re looking for. Some of the other advantages are:
- You can move straight from your large home to your new, smaller home, so there’s no need to rent or pay removalist costs twice
- There’s no pressure to buy a new smaller house or apartment that’s not quite right, because your settlement date is looming
However, some disadvantages you should consider are:
Without having sold your current home, you don’t know what price it will achieve and this can make it difficult to budget effectively
- If you have financed the full price of the new home, you may feel pressured to sell your old home urgently
- If you have difficulty selling your old home, you may need to service two mortgages
- Should you old home fail to sell, you may need to generate income by renting it out and this may make it more challenging to sell in the future.
How can we help you plan your next move?