Buying or selling your property can be a nerve-wracking and excessively complex process. Having to deal with legal documents on top of finding a client and negotiating for prices is quite stressful for first-timers on the real estate market. Figuring out where to start is the most difficult step, but knowing this can help get the ball rolling.
As a buyer, there may be several factors to think of when looking for a new residence. For the regular Australian citizen, having two properties at a time is a logistical nightmare, especially with the steadily increasing expenses of this age. One of the biggest questions you might ask yourself would be, “Do I buy a property now, or sell my current property before I do that?”
Although this question seems to be directly linear, the underlying factors are much more complicated to come up with a straight answer. As such, here are a few considerations to review before buying or selling your property.
Check your available funds
Checking your available funds for purchasing real estate is one of the first steps you have to take before deciding to buy or sell a property. Knowing this simple thing won’t only help you budget how much purchasing power you have, but it also secures you from not making a decision that ends with you homeless.
That goes farther than merely checking the contents of your bank account—having a healthy estimate of both liquid and non-liquid assets are necessary here. Whether it’s the value of your bonds and investments or the jewellery and other saleable items you have, knowing the total can help you make smarter moves with your money.
Apart from how much your assets are valued, knowing what your bank can give you is a necessary step as well. Purchasing a new residence is costly, and the backing of your bank via a loan can really ease your mind off of things. By knowing how much the bank can loan you, you can determine whether it is feasible to own and maintain two properties at a time—a definitely important piece of information to help you decide your real estate choices.
Determine the market’s condition
In determining the condition of the real estate market, you can pattern it with your knowledge of your current assets to make a sound investment decision. Knowing whether it’s easier to sell or to buy property at a particular period and whether the value of your properties is at its peak can help you make the right choice.
Knowing the market that you’re going into is a definite pre-requisite for doing this particular step. The particular region, state, or city can affect prices and taxes, so knowing when it is best to buy and sell is valuable knowledge.
To Buy or To Sell?
The rule of thumb in deciding whether you should buy or sell is usually to handle the task that is more difficult first. If you’re looking for a property in a more limited buyer’s market, then consider purchasing your future residence first prior to selling your current one. Conversely, if your current home is in a market that is difficult to sell, then focus on getting a sale before purchasing your dream home.
It is merely a basic guideline, as there is always the consideration of how long it takes before you can complete both tasks. You may have to resort to renting in between selling your residence and buying your new house—which is why factoring in your purchasing power is important.
The real estate market can be a confusing landscape, with all the prices and factors that you will have to consider before moving. Getting the advice of a professional buyer’s agent can definitely help you navigate for the best options and prices for you. If you’re looking for one of the best buyer’s agents in Sydney, contact us today and see what services we can offer you.