I live in Perth and I am interested in buying a house on the same suburb with a bigger block. This house just come on the market few days ago. In order to do this I have to sell my house.
What would be a better way of doing it:
1. Put an offer subject to the sell of my house.
2. Put a low offer subject to a loan approval and long settlement (3+ months). Then put my house on the market. I am hoping that Perth market is still holding while my property in on the market.I feel that it is less likely that the seller will accept a conditional low offer (other than bank loan) with low offer. Also I don’t mind paying 3 – 4 months interest if I can’t sell my house quickly.
Should I sell my house with the same agent. I wonder if this will be better with option 1, since they will get 2 sales and make the agent work for me too.
Can anyone give me a suggestion?
You could always keep your house and buy the new place if you can afford that.
Alternatively, you could utilise a bridging loan so you would not have to rush to sell your house.
Either way, you might like to at least get a conditional approval (pre-approval) done as soon as possible to know the lender will forward the funds. Sit down with a good mortgage adviser and all will be clear. Ask about bridging finance!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Hi Zen,
Thanks for your post… interesting question.
I’d imagine that the less risky thing to do would be to put in an offer subject to selling your home by XX date for (at least) YY price. The problem with that is that it gives the vendor a reason for saying ‘no’.
If you choose Option 2, then I’d certainly have a Plan B worked out should you not be able to sell your home by the time you have to settle on your new PPoR.
Yes, paying a few months of interest may be acceptable in the short term… but quantify how much this might be and also be aware of longer term consequences too (i.e. such as a drop in price).
Best of luck with it, and Merry Christmas!
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thank you for your suggestions.
I have to sell my PPOR to buy another one. A bridging finance is my plan B. I am leaning toward the second option, put an offer subject to a bank loan only. In general will bridging finance has a higher interest rate?
One of the concern is that a .25 % interest rate hike in March next year on already a soft market. What I am trying to achieve is basically to try to sell my house on the same market condition. I really don’t know how the market will swing while I am trying to sell the current PPOR. I quess that will be the risk that I have to take with option 2. I wonder what other options I should consider.Only the new funds required will be on a slightly higher rate. The existing money can stay where it is with some of the newer bridging loans in the market.
What I am trying to get at is that there are a heap of options available to you and you need to do the numbers on all of them to see which is most suitable for you.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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