It’s a common question – is it better to sell your current home first, or buy your new home before selling the old one?

There are pros and cons to both options, and your Mortgage Brokers Canberra broker can help you decide what’s best for your situation.

Option 1: Sell First, Then Buy

Selling your home before you buy a new one is usually the safer option.
Why?

• You’ll know exactly how much money you have to spend on your next home.
  
• You won’t feel rushed to sell quickly or accept a low offer just so you can move.
  
• Sellers may prefer your offer because it won’t be dependent on you selling your home first.
  

What are the downsides?

• You might need to move into temporary housing between selling your old home and buying your new one. This could cost extra, unless you can stay with family or friends.
  
• If house prices rise quickly while you’re waiting, you may struggle to afford your next home – especially if you’re buying something bigger or in a better area.
  

Tip: If you expect to find your next home quickly, ask your real estate agent in Canberra to negotiate a longer settlement period with the buyer. This gives you more time to find your new place.

Option 2: Buy First, Then Sell

Buying first can be a good option if:

• You’re confident your current home will sell quickly and at a good price
  
• You don’t want to deal with temporary housing
  
• It’s easier to keep your old home clean for open inspections when you’re not living in it
  

What’s the catch?

• You may need to pay two loans at once if your old home doesn’t sell before your new one settles
  
• This can be stressful and costly, especially if the sale takes longer than expected
  
• You might feel pressure to accept a lower offer just to stop paying two mortgages
  

Another idea: Move into your new home and rent out your old one for a short time before selling. This gives you time to find the right buyer, and may even make the property more appealing to investors (since there’s already a tenant).

Temporary Finance Options

If you buy before you sell and the timing doesn’t line up, you may need short-term finance to cover the gap. Your broker at Mortgage Choice Canberra, can help you explore your options.

1. Bridging Loan

A bridging loan helps cover the time between buying a new home and selling your current one.

• It’s a short-term loan, usually for up to 12 months
  
• You only pay the interest, not the full repayments
  
• You’ll still need to pay your existing mortgage too
  
• Bridging loans can be expensive, especially if your home takes a while to sell
  

2. Deposit Guarantee (Deposit Bond)

This lets you buy a home without paying the full deposit upfront.

• A lender provides a guarantee to the seller that you’ll pay the deposit at settlement
  
• It can be a cheaper option than a bridging loan
  
• It gives you more time to sell your current home before paying the full amount
  

Get in touch Even if you’re brand new to property investing, there are many resources available to equip you with the knowledge and confidence to take that first step on the property investment ladder. And you don’t have to do it alone.
If you’re keen to buy an investment property, get in touch with Mortgage Brokers Canberra  on 02 61901219
. We’d love to help
you get started.