My partner and I are clueless as to how to go about taking the steps to purchase our ideal home, currently on the market for over 12 mths at $465,000(neg.) whilst we currently have a home, approximate value of $320,000 with a mortgage outstanding of $80,000. Our home is not currently on the market however we would like to do this (selling privately ourselves) to purchase the other. Our current home most would call a "renovators delight" however is on a good size (flat) block well within walking distance to amenities. We would be pleased to hear of any of your tips to help our family take the required steps in the right direction. Cheers, Elle
Hi Elle
Well you have two choices;
1. Selling your home first, staying somewhere else temporarily, and then purchasing the new place
or
2. Try to do both at the same time, ensuring that there is a special condition on the purchase of the new place saying that it is subject to sale of your old place.
Either way, first step would be to select a solicitor and discuss your intentions, and find out his/her process for assisting someone selling without an estate agent.
You will of course need to give some thought as to how you will advertise the property to prospective buyers (newspaper/internet etc). There is a company called "For Sale By Owner" that specializes in this sort of thing – you could look them up and see if their service applies to you. http://www.forsalebyowner.com.au/
Hope this helps
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Elle
If your borrowing capacity allows, you could tap into the equity in your current property and use it to cover the deposit/costs on your next property.
You could then move into your next property and place your current one on the market. If it doesn't sell quickly – get some tenants in there so you can generate some income from it. Only downside is that it might be more difficult to sell if tenanted.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Similar to Jamie's suggestion above but if borrowing capacity doesn't allow, there is the option of a relocation loan based on end debt and interest capitalisation. Gives you time to sell your current property, the caveat being that if you don't sell within the prescribed time, you are required to start repayments on the total debt.
Cheers
Tom
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