Selling ppor at auction then bidding for new ppor one week later

it has probably been discussed here before. We sold our ppor yesterday at auction for 60 days settlement. Obviously selling at auction made it unconditional. Are we safe to bid at auction this coming weekend for our new ppor? Or is it better to wait out for 60 days till we receive the money?
Without the $ from our old house we can't afford to pay for our new house, and our new ppor will cost more than our old ppor. Has anyone done this before and got into trouble?

 

Do you really have a choice? Where will you live after the sale settles?

 

We are going to move into the in-laws. So no problem. We are worried about if the buyer of our old ppor pull out and forfeit the deposit, we may have to do the same with our new ppor. But our deposit on new ppor that we set to lose exceeds the deposit we will receive from our old ppor. So we are to lose 50k.

 

What if it doesn't settle?

 

Exactly what we are worried about. What if it does not settle?

 

There is poster on the forum where the property sold at auction and it never settled.

They had to resell. But what can happen is a domino effect. Your buyer doesn't settle, you have entered into a new contract and then you won't have the money to settle. That effects the one selling you, and pretty soon the whole economy collapses because one buyer didn't settle.

A way around it may be to use bridging finance, but you have to plan ahead

 

You are most likely okay however this isn't legal advice and not saying I would just leave it (not saying I would do the following either as I am not in the situation).

Most auction sales will proceed as is as the deposit people don't want to walk away from... however if in the rare chances they do walk away then you are left holding the babies so you would need to look at bridging finance or some other arrangement.

Yes it can be like a domino effect as Terry pointed out but it would be rare - although still a possibility.

If you want to be 100% wait until settlement and funds clear or organise bridging finance.

 

Could potentially negotiate a long settlement period before the auction. If your settlement is delayed or falls through, organise a bridging loan.

Cheers,
Inertia.

 

Do you really want the stress?

 

Best to wait till you settle before committing to any acquisition where you do not have a "subject to settlement of my own property" special condition.

 

It's also worth noting that if you are the successful bidder at auction, then depending on whatever you have agreed in writing (eg email) with the selling agent, you may need to pay up to the full 10% deposit on auction day... or at best, within a couple of days. In order to be able to do this, you need actual cleared funds ready in your account... not the promise of funds to come.