Selling first and hope you find something?

Just looking at people's experiences.

I'm looking at upgrading shortly but as what we will get for our property could vary quite bit think we will prefer selling first so we can then avoid bridging and know what our next budget truly is.

Did people find themselves in the predicament of then needing to rent? Or felt pressured to but something quickly if they're house sold? Or conversely how much success do people really have with offers subject to sale of their own (at a certain price range)

 

You could sell and rent back from the buyer.

 

This can turn into the domino effect from experience and if one sale falls over then depending on who sorted the wording in the contract it could go into several months before you can settle..
In a boom market it can work ,but i have never had one settlement where it went the way you wanted there is always problem and the problem list can be very long..imho..

 

Selling first gives you the freedom of knowing how much you can spend, provided that the market isn't moving against you (pricing you out of the market).

You can look around during settlement, even if there's time without a property, you can rent or stay in short term accommodation.

 

Whilst selling first is the traditional approach, I am seeing a trend in Sydney of upgraders actually buying first , then selling.

This is largely driven by the lack of quality stock on the market. Sellers don’t want to be in a position of selling and having nothing to buy, then effectively being sidelined from the (rising) market.

This does require bridging finance, but doesn’t appear to be a big deal/ causing any issues.

 

Rising market - Buy then sell. (No shortage of buyers, and rising prices. You could rent out your old PPOR too if you decide to hold onto it for a while.) In the last boom, a friend sold with the intention to then buy, but then they got priced out when they wanted to buy as prices moved so much....

Falling market - Sell then buy. (Harder to get a buyer, and its good to know your budget. In a bad market, you mightn’t get a buyer for months)

Flat market - probably sell then buy (as above). Or buy the new, and keep old PPOR for a while, rent one of the two properties out to tenants if you think prices will go up sometime in the near future and you can afford to hold both.