Next home buyers are people who are looking to sell their current home and purchase another home. The two main reasons for this is that their current home no longer caters for their growing family (upgraders) or their current home is too big as the kids have grown up and left home (downgraders). This also includes homeowners who would like to move to a new suburb or build a home that suits their needs.
Some of the key concerns for next home buyers include:
- Determining if you can purchase or build your next home before you sell your current home, and if so, how?
- Identifying the costs associated with selling and buying another home
- Determining if you can keep your current home and rent it?
- Identifying how much will extra borrowing affect your repayments?
Selling and Buying
For next home buyers wanting to sell their current home to purchase another one it is important to be realistic about what funds you will have available for your next home purchase. In determining these funds you need to take into account the current property market conditions and deduct any selling costs, such as sales agent fees and commission and legal costs. Even if you’re selling in a hot property market it’s likely that you are going to be purchasing in that same market and so you need to recognise that you will possibly require further funds or borrowing.
You will also need to consider the buying costs associated with your new purchase. This includes stamp duty, legal, government and any lender fees. Stamp duty can also be a considerable cost.
At Keypoint Financial Services we will assist you in understanding the costs you will need to consider and we will show you all of the options available to optimise your finance solution.
Buy First, Sell After
A key concern for next home buyers is selling their current home before they find another one. They don’t want the added cost and inconvenience of having to move twice and pay rent for an indefinite time. One possible option is to take advantage of a bridging or relocation loan that will enable them to purchase their new home before selling the current one.
Contact Us at Keypoint to find out more about this option for you.
Buy New, Rent Old
Another option many of our clients inquire about is the option of buying another home and keeping the current home as an investment property. This will enable you to upgrade or downgrade to a new home and at the same time become a home investor. Some clients also prefer this option if they are buying in a slow property market and would like to wait for a stronger property market to sell their home in. Keypoint advises you to discuss some taxation implications of this option with your accountant or tax adviser before you commit to this option.
Contact us at Keypoint now to discuss your next purchase options further.