I am interested to know what options I have for purchasing a new PPOR where I will need the proceeds from the sale of the old PPOR to fund the purchase. I am told that bridging loans are not used much anymore. I could sell and rent back but that puts me under pressure to find the new place. Is it common to find a place and the vendor rent it to you while you sell. Are there any other ways around this situation? I’m trying to avoid being under pressure to sell or under pressure to find a place.
This should be a smart sounding comment but it isn’t!
Its a tough one. I have not been through it yet but these are my thoughts.
1. If you sell before finding new PPOR. You may be limited in whats on the market and you may not find the PPOR that you really want in the time you have. Or you have the extra hassle of renting and moving twice. This too costs time and money.
2. If you buy new PPOR because its what you really want then the downside is that you may accept or get less for your old PPOR as you need the funds.
So whats worse – buy a new PPOR that really does not suit your needs OR get less money when you sell your old PPOR.
If you intend to stay in the PPOR for many many years then getting a little less for your old PPOR may be the lesser of two evils.
Thats probably what I will do when its time to upgrade my PPOR.
Anyway – just my thoughts.
mikeej,
I see lotd of ads in realestate.com.au where it says “old owner wants to stay for 12 months” or something similar. Landlords want tenants- or our IP means nothing investment-wise, and landlords also want good tenants, so the old owner would be ideal. I reckon it would be easy to do a deal with a new vendor. Maybe you could pay a little more rent to act as a “sweetener” to the new owner. And, if your house is competitive for vendors, then you just choose the vendor who’ll write up a lease for you- the ball’s in your court, I reckon.
kay henry
I agree with yack.
I have seen clients have to accept a low offer on their PPOR as they need to get out of the debt. I wouldn’t do it in this market.
If you sell at top price taking your time then negotiate to buy well you may save a fortune.
Make sure at every step you are in control! Don’t be that desperate vendor we are all looking for!
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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