Moving to a new home

For almost everyone there comes the time when we want to / need to change our address.

Sometimes it’s a move within the suburb – and sometimes it’s a different area altogether. A change of needs, an extra room or a tree change…the many varied reasons all have the same underlying concerns:

  • How do we go about it?

  • Can we buy before we sell?

  • Can we afford it?

  • What if we sell first and we can’t find anything we like?

There are a few ways of achieving this, ultimately we don’t want you out of the property market for too long, however sometimes it even makes sense to sell, let the dust settle and test the suburb while renting.

Simultaneous sale and purchase

Nirvana. When it all goes to plan. Quite literally this would mean you sell your current home and buy a new home with the settlement on both to happen at the same time. Essentially you replace one home with another.

Pro’s – simple and no interest bill in the meantime.

Con’s – should you have any hiccups on the day settlement may be cancelled and essentially you can be in a truck outside your new home with all of your life and furniture – with the only option to go home and try again another day. Hiccups could involve things that are outside of your control- for example the purchasers bank not being ready on the day, which causes a chain of missed settlements.

Another consideration is you will be obliged to exchange (commit unconditionally to your new purchase) – and pay a deposit – on the new home after a cooling off period. You should not exchange before you have an unconditional sale on your place, and in a perfect world you would request the purchaser to release the deposit they pay you – for you to use on your new purchase. Failing this you could use a deposit bond. In either instance let your conveyancer / solicitor know in advance that you will need to use one of these options if you don’t have the cash spare for 5%/10% of the purchase price.

HINT – to improve your chances of simultaneous settlement consider offering an extended settlement to your purchasers which al