In the current Sydney market with houses averaging only 29 days on the market it may be time to re-assess your decision to sell before you buy. Of course that is not say that you rush out and sell your home – you need to ensure that you are going to have the funds available to purchase the replacement. Keep in mind that with property prices constantly rising as they are at the moment, you cannot afford to wait too long to buy back in so renting is not really an option.
This may mean that you have to consider a bridging loan – now before you scoff and hit the back button – not all bridging loans are expensive. Yes there are some shockers out there but there are also some very reasonable loans such as a full bridging option with a fixed interest rate and a 100% offset account all with an interest rate of only 4.59% – there are also some very reasonable variable rate options as well.
It may be that you won’t need the bridging option and some loans allow for that. But having the peace of mind that you have finance approval in your pocket not only gives you more bargaining power when negotiating your new home, it takes the pressure off having to accept a lower offer on your selling price.