We all grow up with the idea that we have to sell our existing property before we can buy a new one. After all, where will the cash come from to finance the new purchase? But it turns out that taking this approach and waiting for your existing house to sell puts you at a disadvantage. You have to continually delay buying the home you want because you’re waiting to sell the one you don’t want. That’s not ideal.
In this post, we make the case that you shouldn’t do what most buyers on the property ladder and wait for their existing property to sell. Instead, you should strike while the iron is hot, buy the home you want, and worry about the money situation afterward.
You Don’t Know If You’ll Find A Substitute Home In The Future
Let’s say that you’ve found the perfect property for you and your family. That’s great. In an ideal situation, you’ve already sold your property – or you’re about to.
But what should you do if there are no buyers interested at the moment? Just give up and tell the seller that you can’t do the transaction? No! Of course not!
The problem with properties is that each of them is unique. Thus, you never quite know if you’re going to find something that meets all your requirements again. Sometimes you will, sometimes you won’t. But it is better to avoid taking that risk if you possibly can.
You Don’t Want To Wait Around
Banks, solicitors and estate agents will usually construct a chain of buyers and sellers to complete a set of property sales. The first buyer usually has a pile of cash ready to go and then gives their money to the seller who passes it onto the owners of the property they’re buying and so on. This process can continue for dozens of transactions before completion.
However, you don’t actually have to be a part of it. If your buyer is struggling to come up with cash to purchase your property, you can use a bridging loan. This way, you can get the money you need to buy the home you want right now and then just pay the lender back when you finally sell your property. Schemes like this help you avoid wasting time and move into your new home faster.
You Want To Take Advantage Of A Lower Price
Sometimes you’ll come across properties in the housing market going for much less than the market rate. The reasons for these sales vary from one situation to another, but they’re usually the result of financial hardship or relationship breakdown.
The problem with lower prices is that they don’t last for long. If you don’t take advantage of the opportunity, somebody else will.
Again, by finding ways to get money upfront without selling your property first, you have more scope to scout out these deals. You’re able to offer cash on the spot while many buyers can’t or won’t.