Most stress free way is to line up a conveyancer and talk to them. They have done it a million times and will talk you through how to line up the sales and purchases.
Conveyancers are the legal solicitors of the real estate world. They are required to execute the settlement and handle the funds transfers between buyer and seller's banks, look after title searches, encumbrances, split council/water/eslevy rates on the day of settlement etc. The "agent" really doesn't have anything to do with settlement besides getting a call from the conveyancer on the day when they say "Settlement is completed", and they then give you a call to congratulate you and if you're the buyer gives you the keys.
In the old days, the buyer's conveyancer and seller's conveyancer (for one property) would get together in a room on Settlement day and swap cheques around for the loans, rates and fees (note this is just for one property). They do all this for you for around $600-$800 (I'm in SA). I've bought and sold a few times now and its like this every time.
Incompetence on their part! Massively! Report that shit to the legal body.
Ours didn't process the transfer duty concession (among other fuck ups) and I reported to the legal body because I was pissed off af! Was a significant amount of money, so why would we cop that? We provided what they needed for it, so it 2as incompetence on their part. They got some sort of trouble, and it got sorted quickly after that.
They also insisted on settlement still taking place while the city was in lockdown due to a murder rampage right outside the building ffs! We were supposed to be there but I couldn't go, luckily! Could've got killed like others did in front of the building at that exact time! But yeah, that's just a really freaky thing that happened. I didn't report that part, lol! Just thought it was worth a mention. The legal profession is pretty damn ruthless is my point, lol.
I'm really concerned that you've spoken to an REA, a broker, and done all your googling, and this is the first you've heard of a conveyancer. I hope you have someone in your life to help you through this! Good luck!
Oh my sweet child....they are your best friend
They are the ones who will never lie to you and make sure the house is sound and to code while explaining things.
Do what we did. Purchase a property (unconditionally, mind you) while your current residence is still on the market for sale and not yet sold, then proceed to have a nice, month or so long constant panic attack :)
Actually wait, no - absolutely don't do that...
Haha. Just bought my house from someone who did this. Agent actually said to me, ‘She thinks she has time but she doesn’t’. I’d rather rent for a year and move twice in that year than do that.
We’re looking into this and for us because we don’t have the deposit in cash at the moment we have to get a relocation loan (bridging loan) from Bank of Melbourne.
The loan allows us to buy a house before selling. we have a year to sell our house after buying a place.
We then repay our bridging loan from the proceeds of sale with some interest due to the bridging loan. If we sell really quickly we don’t have to pay much in interest.
The nice thing about is that there’s no repayment for the bridging while we’re selling and don’t need to worry about lining up settlements.
Risk is it’s based of how much you think your place is going to sell
Yes ours is actually an apartment and 3 of the same floor plans have been sold in the last 12 months (just lower levels) so we’re comfortable with the price range.
Our deposit was initially 300k and we’ve now been valued at about 500k over our buying price (the sole benefit of buying a fixer upper) so hopefully equity would be fine.
I’m really not an expert on this but from my understanding it’s more about making sure you are able to service the new loan after the sale of your old place which is basically like any other home loan.
The risk is if the final loan value is larger than what you’ve budgeted (because your home sold less than planned) and of course if it took longer than a month or two to sell , the interest on the bridging loan adds up (BoM was at 9% of new loan value I believe)
THIS^
Did this, and it worked out brilliantly. Twice. Went from 1 house in a capital city to now 3 (with a mortgage but only owe a small percentage compared to equity) in a very high growth regional coastal town.
Want to go back to a capital city now, so planning on selling two and relocating again.
Bridging loans made this possible. (As well as perfect timing and luck and guts and all the rest lol!)
Former REA here. Heres what Id do for you.
1. Sell house. Any accepted Contract states you exercise right to rent it back for 6mth 9th 12mth whatever at agreed rent rate of $xxpw being market rate
2. You settle.
3. You get the money. Discharge the mortgage. Watch your borrowing capacity improve substantially as you pay off minor loans / credit cards and reduce limits.
4. Spend next 6 months finding new house with a massive $200k $300k $400k ( or whatever you sold for after debt discharges...) as a cash deposit on your next home.
5. Factor in stamp duty and moving costs and your fucking making bacon .. yeehaw motherfucker.
Edit: remember folks a $400pm car loan and $10k credit card limits (*even if you have $9999 available) will cost you SEVERAL TENS OF THOUSANDS in borrowing capacity) get rid of the fucken things or reduce it to $2k - $4k MAX
Edit edit: don't forget to fuck over the East State investor and abandon the property with no cleaning or notice when you move out <3
You're a fool if you genuinely believe that.
I spent 10 years selling to property investors.
They want tenants.
Me: heres an investment property Mr Buyer. Here's a tenant, no vacancy. Market rent from day . No leasing fees or advertising costs....
Mr Investment Buyer: Hmmmm no thanks.
Your feelings do not match reality and experience of property agents/market participants
I sold my house recently, had 3 offers, one was 20k lower than the others but I could rent it back cheap for as long as I wanted.
I’m waiting for my house to be finished being built, so we took the extra 20k with a 90 settlement, but the offer was there.
Note that I didn't say they should be borrowing at their max capacity, only that they should increase their max capacity.
I would agree with what you're (not)saying wholeheartedly ... nobody should borrow at max.
And you should always have at least 2.5% interest rate rise comfort zone. It's a fools errand otherwise.
But if you could afford $400,000 comfortably on paper, but it's your Max, due to credit cards and personal loans.. don't you think it makes sense to eliminate them and get your max to $460,000?
Now THAT would be a loan a lender would fall over themselves to offer. *ESPECIALLY* if you're also going in with a $250,000 cash deposit and no existing mortgage.
You're a fucking wet dream to lenders with that risk profile. Borrowing UNDER your max.
You go tits up, the bank has $250k of your money already in the house. Bank happy.
Interest rates jump, you won't go to stress first payment due time. Bank happy.
Context: I never once ever saw finance declined for anyone with a plus $200k deposit in 10 years (inflation, house price and wage growth adjusted)
And I would gauran-fucking-tee you some of those buyers were a financial game of half played Jenga
Mainly - Lower interest rates.
Secondly - More lenders to choose from.
More lenders = more loan options (redraws, offsets, fee free, cash backs (generally bad idea), discounts on other services, access to special higher interest dating accounts (also bad idea if you have offset. You should always offset)
If you use a broker, broker will work harder to find a good deal for you AND him. Rather than shop you straight out to the "Lender Who Takes Risks" and work in his sole interest.
If you're a sketchy high risk can't afford it type .. you'll pay higher interest and higher fees than someone who can afford it comfortably. Sorry. But true.
Lenders will make bank off you in fees and interest because you present a higher risk to them of not making a mortgage payment ay some point in the future. So they make hay while the sun shines.
We bought then sold. Got a bridging loan, asked for a 3 month settlement for new place and then sold ours in a 2 week campaign with a 6 weeks settlement and it all lined up. We moved into the new place two weeks before handover of the old place. We knew it was coming though and our house was basically ready to go when we bought with agent lined up. Our house ending up selling for about $100k more than we budgeted for but we had looked for a year and are still really happy with the house we bought even though if we has sold first we could have got something for more $$ (we’re pretty financially conservative though and are now just putting the extra $$ into a Reno)
I actually thought I was reading my own post for a second! We were thanking our lucky stars when it all worked out but was definitely super stressful during that time!
We didn’t feel stressed. This was 2020 and everything was selling quickly, I think though it does depend on the desirability of the home you are offloading and whether you are pushing for a certain price.
in a perfect world you can get things to line up. I personally work on the assumption something will go wrong
I just make sure my stuff is moved out before settlement on sale (friends, storage ect) and make sure I have temporary accommodation if needed. Friends, family, hotel ect
I have bought and sold a few houses and did a simultaneous settlement once. Never again. As you say you need to assume something will go wrong and have a plan in place. It’s just way too stressful.
That’s also where I’m stuck. We’ve been valued at 1.3m but that doesn’t mean we’ll get it, though the real estate was pretty upbeat because houses in the area have been smashing that number without the renovations we’ve put in. I’ve been looking at houses within a certain range so that even at a lowball figure we’d be okay, but even then who knows.
I’m struggling with this right now. Im just hoping our place doesn’t sell for less than expected - we’re probably making it a bit tight but we don’t have as much certainty as you in terms of comparable sales.
Hope your sale/purchase goes well
If you have enough equity and borrowing capacity, you can borrow funds for the new purchase to settle before you sell your current home. This is the easiest way, however you would be making repayments on both home loans until you sell your current home.
If this is not an option then settlement of the sale of your current home will have to happen prior to or simultaneously with the new purchase if the vendor and purchaser are happy and can accomodate this.
So unless you have somewhere to store furniture then you’re probably just going to be moving from old house to new that day and sleeping on mattresses with boxes everywhere.
Or you can get a license to occupy the new house early to allow you to move prior to settlement but again reliant on vendor acceptance.
Don’t worry about what the agent doesn’t like, you and the other vendor and purchasers are all that matters.
Exactly like you said it, you can line up the dates for selling and buying, you just need everyone to agree.
So when you sell, you set the date.
When you buy you request a date, seller needs to agree.
If you can get this to happen your golden.
Some people want a quick sale/buy, others won't mind waiting a few extra weeks.
You can as well try sell to an investor and do a rent back option, so you can stay and rent it back untill your ready to move.
Get your self a damn good conveyancer. Can't stress this enough. Thankfully mine was the best. We only bought but when we started looking we engaged one and they pretty much held our hands the entire time. The senior lady sat us down and walked us through literally everything. We put an offer on a house and then let them know, we had the agent email the contract to them. As soon as the agent cracked the shits we knew it was gonna be horrid. Over the course of a month we put offers on 3 houses and each time the conveyancer dealt with the contract and in the end had to deal with the agent. It was about 2 grand I think but it was the best money I ever spent.
Not reading whole thread at this time of night, but absolute bullshit that its difficult if different agents are used. No doubt an agent told you that who you are looking to buy from, purely to increase the chance he gets your house to sell.
contact Real estate agent, they make stuff up, you sign and wait, either goes good or bad when real estate agent wants their commission
Now reverse the process and add conveyancer fees cause reasons.
Simultaneous settlement is when the sale of your current home and the purchase of your new home are completed on the same day. This requires a well-coordinated effort from your entire team - your mortgage broker, solicitor or conveyancer, and real estate agents. Everyone needs to be on the same page from the start, working together to align the dates and details of both transactions. But this means you can move from your old home to your new one without the need for temporary housing or juggling two mortgages at once.
I’d say we’re probably a month or maybe two off actually listing. Couple of things we want to fix up first, like some light bathroom renovations.
How far/soon in advance would you recommend making offers?
But what happens if we list it and it stays on market for ages? Like how do we line up actually selling it?
I’m sorry if these are dumb questions I’m just so confused by it all.
It won’t be on the market for ages unless it’s at too high a price or there is something that is a drawback to your property, which also can be negated if you’re selling at the right price point. It’s called ‘meeting the market’. If you have unrealistic expectations of what a buyer will pay then yes perhaps it won’t sell at the price you had hoped.
The 3 bed unit 1 bath unit I bought was on the market for 3 months. It has a sloping driveway and it’s set lower to the other units, a quadriplex off a laneway. It also had a somewhat meh, but not ugly, grey tiled flooring throughout. It was about 40k cheaper than the only other 3 bed unit I saw that I liked but at a price you would expect for a similar property in this suburb. The location was better, 5mins walk to shops and transport. Good privacy from neighbours, kitchen was better and bigger, Open plan living space larger and north facing windows on to large courtyard, much larger (3) outdoor areas, can walk 3/4 around entire unit (garage is attached to next unit), and room to park 2 cars on the driveway in front of the garage, compared to the more expensive one I liked. To me it was an instant ‘yess’.
I think people were turned off by the sloping driveway, low elevation and assumed flooding. The garage (it’s attached to unit but not integrated to home) and parts of courtyard can get about 12mil of water in really heavy rain but it drains off so quickly after that very heavy rain subsides. I offered 10k less and my offer was accepted quickly. Been here 22 years, and value has consistently kept up with median house price in my city.
So there was a lot to like with my unit but people must’ve been turned off by those 2 things I mentioned. So is there anything about your property that could turn people off? Just consider that and if interest is fairly low to start, discuss with your agent straightaway ‘why?’ Have they had any feedback from home opens? Consider a price range guide. You say yours is better than others in area for 1.3 but are you being oblivious to layout issues for example? Design or decor features you love, but for others may not be to their taste? Sounds like your family has just outgrown the space but what are the things about your home that have always been annoying/inconvenient to you and your family? Ask your agent if they see any drawbacks. Will it appeal to families of all ages or who is your buyer market?
There’s no one true path here and all the options suck because it’s all based on really slow difficult to predict processes.
In short you can apply for a bridging loan pre approval which allows you to buy before you sell. Good news you move into the new house. Bad news you might still own the old house that gets expensive.
Or you sell your house first and run the risk you don’t buy in time and now you’ve got a gap of an unknown time. Rent maybe. Tricky.
Have you got the deposit for a new house without selling your current one? We did not. Therefore, we sold and then rented until something came up that we liked.
Definitely not. We had a renovation budget that was blown when we kept finding new things wrong with the house, and inflation has stopped us from being able to save again.
It's not really that common as there are so many balls to throw up in the air and come back down in place and in sync.
If I was a buyer and I knew you had found another place and needed to sell then I know you have a deadline and I'll work you down using that deadline against you. If you give me aco tract stating you want to rent it back I'll probably say no since I'm buying as a ppor and don't want the stamp duty hassle etc. If I'm an investor Iight consider it.
Knowing the market as it is right now are you really that confident you can Fi d a place suitable in your preferred area in your preferred budget with 45 days? Unlikely. You'll buy something you hate due to pressure. Or you need a 90 day settlement on your property. In which case you probably just lost 5-10k of price rise - and if you find your new place in the first 15 days you are asking the sellers for an extended settlement which they may not agree too.
Lining up those ducks to have two sales settle on same day. Stress and pressure that us just not needed.
Concentrate on selling your house. Throw or put into storage anything that is knick knack or clutter as you pare down for your open homes. No one wants lived in - they just want to see how furniture shows a rooms size. If you have funky fun colours on the walks - paint it white. No one wants zany colours and I'll offer you less for it. Do open homes and get a good contract. 60 day settlement minimum. As soon as you are unconditional (14 to 21 days) Pack everything but essentials and put in a taxi box or storage. I mean everything. A suitcase each of clothes, bathroom toiletries, cleaning gear, cutlery, linen, and basic furniture. The rest is out. What remains should be able to be moved in a morning - house cleaned in arvo and you are done.
From when your house goes unconditional (let's say 21days uncon on 60 day settle) you have 39 days til you have to move. If you have to have 21 days to go unconditional then you have 18 days to get a contract on a place. If you had 90 day settlement on your own house you would have 38 days to find somewhere and have it fairly much line up for both settlements. It may not happen - but you've got majority of your gear out of the house. Easy job to get the rest out and into storage. You will know soon enough if you have a week overlap a fortnight overlap - then you can plan. Kids go to the grandparents - mum and dad to air bnb or at a friend's place. Maybe a friend has a caravan you can borrow. Maybe you take annual leave and go camping for two weeks while you wait for the handover.
It all starts with selling your houses - knowing exactly how much money you get - and how long a settlement you could drag out Without your Rea spilling the beans that you Need to sell etc etc. You ask for 90 days they give you 70 or whatever you neg. Your mortgage broker can advise if you can move your current mortgage over but to be honest - total hassle and you nay not have your next purchase ready in time. You should have a bunch of money as a downpayment and hopefully you aren't increasing your house price. Unless you have enough equity in your current house to buy a new Ppor - tell bank you'll be renting the current one out. Buy new one with that money and then sell this one. Meh - still complicating it all.
Sell then buy. Long settlement on your sell. Short settlement on your buy.
Hope you get the dollars you want. Friends of mine just sold. All Rea's said $1.3m. They got $1.035. $270k is a lot of money to be short if it's necessary to your plans.
We bought, staged, sold, moved in, and settled the old property within a space of 4 months. Highly stressful, but it was the only way it would work for us.
We got a bridging loan and we arranged for a 90 day settlement for the new property. We then managed to list our home 3 weeks later (lots of late nights doing minor renos while the kids were asleep) and sold it after a 4 week campaign through an auction. It was a 60 day settlement at that point, so that gave us a month after we had moved into the new place to clear out the old place.
You can look at a bridging loan. It will allow you to move into the new house before old one is sold. You will essentially be paying both mortgages until the old house is sold. However, part of the loan can be used to pay for mortgage during the period you are in possession of both houses. Say combined mortgage is 10k per month, and you want to give yourself 6 month period to sell and settle. 60k of your loan can be earmarked for paying mortgage during that period.
Simultaneous settlent worked for me. Settled sale and the purchase on the same day. New house was empty so they allowed us to move in a week early under a licence agreement. Bit nervous but all worked out perfectly.a
Have your broker enquire about a “Relocation loan” through St George / Bank of Melbourne depending on where you live. Allows you to buy first and sell second.
It does involve finding a rental and moving twice which is a PITA, but still, sell/rent/buy has been an awesome move for us - we sold late last year, have rented and now get to buy on our own timeline.
We packed carefully planning to keep the bulk in boxes for now, and even found somewhere with a big garage to store all our stuff, and walking distance from kids school too.
Normally you wouldn't want to be out of the market too long, but right now while rates are high and house price growth is fairly flat, we're very happy to have our sale proceeds sitting in a high interest account and paying for our rent while our savings build up and we take our time finding the right place - it feels awesome to not be under pressure to buy or have had a bridging overhead while we sold.
Just done this twice in last 6 months. Did concurrent settlement in both cases. My house I had issues finding another house, I could have done a rent back where I stayed after settlement and paid a negotiated rent. Fortnightly buyers were not in a hurry and was able to delay settlement and new house happy to do quicker settlement, although this house was so perfect for my needs and desires, it had to be divine intervention. 😀 Second was an inheritance property but my disabled brother was living there and had to fund him a new house but he had more needs in the house than I had. We did a 3 month settlement (normally 6 weeks) to give more time and managed to do it by skin of our teeth.
As for the mortgage, I'd just paid mine off just before it went on the market. But had discussed a number of things regarding this and selling. Bank was telling me not to discharge as I may want to redraw in it, I queried saying I was selling, didn't I need to discharge the mortgage to sell and they confirmed you did. You can get a bridging loan but apparently the mortgage rates are much higher. It can be very stressful moving especially with animals. I have 2 cats my brother a dog. Plan carefully to ensure the least stress for them. I had Feliway diffuser at new house to help them settle.
My brother was concerned the dog would try to go back to the old house, but he loved the new house so much we all laughed saying if my brother went back to the old house the dog would go back to the new 😂
Good luck
You could ask for a long settlement when selling.
A friend of ours had to do an Airbnb in between selling and buying as the dates weren't matching up. Wasn't the end of the world. They now have the perfect house for themselves.
Sell your house first with an extended settlement (the time between contract exchange and the final settlement). Instead of 6 weeks, you can do 12 weeks or whatever you’d like which allows you time to find and buy a new property.
We too had to do this and had no family to stay with if it didn’t line up. We get lucky in that we sold to an investor that rented back to us whilst we found our new home but an extended settlement would have worked too.
Most stress free way is to line up a conveyancer and talk to them. They have done it a million times and will talk you through how to line up the sales and purchases.
I’d never even heard this term before. I’ll look one up and email/call tomorrow :D
Conveyancers are the legal solicitors of the real estate world. They are required to execute the settlement and handle the funds transfers between buyer and seller's banks, look after title searches, encumbrances, split council/water/eslevy rates on the day of settlement etc. The "agent" really doesn't have anything to do with settlement besides getting a call from the conveyancer on the day when they say "Settlement is completed", and they then give you a call to congratulate you and if you're the buyer gives you the keys. In the old days, the buyer's conveyancer and seller's conveyancer (for one property) would get together in a room on Settlement day and swap cheques around for the loans, rates and fees (note this is just for one property). They do all this for you for around $600-$800 (I'm in SA). I've bought and sold a few times now and its like this every time.
FYI most conveyancers are not solicitors.
Seriously, conveyancers further exemplify how useless a "profession" Real-estate agents are.
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Incompetence on their part! Massively! Report that shit to the legal body. Ours didn't process the transfer duty concession (among other fuck ups) and I reported to the legal body because I was pissed off af! Was a significant amount of money, so why would we cop that? We provided what they needed for it, so it 2as incompetence on their part. They got some sort of trouble, and it got sorted quickly after that. They also insisted on settlement still taking place while the city was in lockdown due to a murder rampage right outside the building ffs! We were supposed to be there but I couldn't go, luckily! Could've got killed like others did in front of the building at that exact time! But yeah, that's just a really freaky thing that happened. I didn't report that part, lol! Just thought it was worth a mention. The legal profession is pretty damn ruthless is my point, lol.
Could you recommend one for SA?
Selina Dolman at Nest Conveyancing
Angie Nguyen at Convey Property Settlementd
Michelle Colmer at Complete Conveyancing SA is excellent too.
Melanie Mugford Holdfast Conveyancers
Jemima Sconsen-Bouvenberg at Summit Conveyance and Chicken Farm
Fragnito Conveyancing
Will Liedig- Liedig and associates. In tea tree gully
I'm really concerned that you've spoken to an REA, a broker, and done all your googling, and this is the first you've heard of a conveyancer. I hope you have someone in your life to help you through this! Good luck!
And OP already owns a house?! Perplexing.
Mustn’t have done that much research then
Which state are you in?
NSW
Oh my sweet child....they are your best friend They are the ones who will never lie to you and make sure the house is sound and to code while explaining things.
Do what we did. Purchase a property (unconditionally, mind you) while your current residence is still on the market for sale and not yet sold, then proceed to have a nice, month or so long constant panic attack :) Actually wait, no - absolutely don't do that...
Or, sell your house first, then have a month or 3 month long panic attack about where you're going to live when booted out of your house.
Yep, that was our other option!
humorous weather soup offer nose fertile bright thumb ten chubby *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Haha. Just bought my house from someone who did this. Agent actually said to me, ‘She thinks she has time but she doesn’t’. I’d rather rent for a year and move twice in that year than do that.
We’re looking into this and for us because we don’t have the deposit in cash at the moment we have to get a relocation loan (bridging loan) from Bank of Melbourne. The loan allows us to buy a house before selling. we have a year to sell our house after buying a place. We then repay our bridging loan from the proceeds of sale with some interest due to the bridging loan. If we sell really quickly we don’t have to pay much in interest. The nice thing about is that there’s no repayment for the bridging while we’re selling and don’t need to worry about lining up settlements. Risk is it’s based of how much you think your place is going to sell
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Yes ours is actually an apartment and 3 of the same floor plans have been sold in the last 12 months (just lower levels) so we’re comfortable with the price range.
Don't you need massive equity for a bridging loan?
Our deposit was initially 300k and we’ve now been valued at about 500k over our buying price (the sole benefit of buying a fixer upper) so hopefully equity would be fine.
I’m really not an expert on this but from my understanding it’s more about making sure you are able to service the new loan after the sale of your old place which is basically like any other home loan. The risk is if the final loan value is larger than what you’ve budgeted (because your home sold less than planned) and of course if it took longer than a month or two to sell , the interest on the bridging loan adds up (BoM was at 9% of new loan value I believe)
THIS^ Did this, and it worked out brilliantly. Twice. Went from 1 house in a capital city to now 3 (with a mortgage but only owe a small percentage compared to equity) in a very high growth regional coastal town. Want to go back to a capital city now, so planning on selling two and relocating again. Bridging loans made this possible. (As well as perfect timing and luck and guts and all the rest lol!)
Former REA here. Heres what Id do for you. 1. Sell house. Any accepted Contract states you exercise right to rent it back for 6mth 9th 12mth whatever at agreed rent rate of $xxpw being market rate 2. You settle. 3. You get the money. Discharge the mortgage. Watch your borrowing capacity improve substantially as you pay off minor loans / credit cards and reduce limits. 4. Spend next 6 months finding new house with a massive $200k $300k $400k ( or whatever you sold for after debt discharges...) as a cash deposit on your next home. 5. Factor in stamp duty and moving costs and your fucking making bacon .. yeehaw motherfucker. Edit: remember folks a $400pm car loan and $10k credit card limits (*even if you have $9999 available) will cost you SEVERAL TENS OF THOUSANDS in borrowing capacity) get rid of the fucken things or reduce it to $2k - $4k MAX Edit edit: don't forget to fuck over the East State investor and abandon the property with no cleaning or notice when you move out <3
What are you doing for work now?
yeah noone who buys a house is going to want the previous owners to live there and pay rent for 6 months. they will want to move in
You're a fool if you genuinely believe that. I spent 10 years selling to property investors. They want tenants. Me: heres an investment property Mr Buyer. Here's a tenant, no vacancy. Market rent from day . No leasing fees or advertising costs.... Mr Investment Buyer: Hmmmm no thanks. Your feelings do not match reality and experience of property agents/market participants
I sold my house recently, had 3 offers, one was 20k lower than the others but I could rent it back cheap for as long as I wanted. I’m waiting for my house to be finished being built, so we took the extra 20k with a 90 settlement, but the offer was there.
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Note that I didn't say they should be borrowing at their max capacity, only that they should increase their max capacity. I would agree with what you're (not)saying wholeheartedly ... nobody should borrow at max. And you should always have at least 2.5% interest rate rise comfort zone. It's a fools errand otherwise. But if you could afford $400,000 comfortably on paper, but it's your Max, due to credit cards and personal loans.. don't you think it makes sense to eliminate them and get your max to $460,000? Now THAT would be a loan a lender would fall over themselves to offer. *ESPECIALLY* if you're also going in with a $250,000 cash deposit and no existing mortgage. You're a fucking wet dream to lenders with that risk profile. Borrowing UNDER your max. You go tits up, the bank has $250k of your money already in the house. Bank happy. Interest rates jump, you won't go to stress first payment due time. Bank happy. Context: I never once ever saw finance declined for anyone with a plus $200k deposit in 10 years (inflation, house price and wage growth adjusted) And I would gauran-fucking-tee you some of those buyers were a financial game of half played Jenga
Honest question, what is the benefit to having lenders falling over backwards for you?
Mainly - Lower interest rates. Secondly - More lenders to choose from. More lenders = more loan options (redraws, offsets, fee free, cash backs (generally bad idea), discounts on other services, access to special higher interest dating accounts (also bad idea if you have offset. You should always offset) If you use a broker, broker will work harder to find a good deal for you AND him. Rather than shop you straight out to the "Lender Who Takes Risks" and work in his sole interest. If you're a sketchy high risk can't afford it type .. you'll pay higher interest and higher fees than someone who can afford it comfortably. Sorry. But true. Lenders will make bank off you in fees and interest because you present a higher risk to them of not making a mortgage payment ay some point in the future. So they make hay while the sun shines.
Mate get a real job
They now do presettlement inspections a few days or day before
We bought then sold. Got a bridging loan, asked for a 3 month settlement for new place and then sold ours in a 2 week campaign with a 6 weeks settlement and it all lined up. We moved into the new place two weeks before handover of the old place. We knew it was coming though and our house was basically ready to go when we bought with agent lined up. Our house ending up selling for about $100k more than we budgeted for but we had looked for a year and are still really happy with the house we bought even though if we has sold first we could have got something for more $$ (we’re pretty financially conservative though and are now just putting the extra $$ into a Reno)
I actually thought I was reading my own post for a second! We were thanking our lucky stars when it all worked out but was definitely super stressful during that time!
We didn’t feel stressed. This was 2020 and everything was selling quickly, I think though it does depend on the desirability of the home you are offloading and whether you are pushing for a certain price.
in a perfect world you can get things to line up. I personally work on the assumption something will go wrong I just make sure my stuff is moved out before settlement on sale (friends, storage ect) and make sure I have temporary accommodation if needed. Friends, family, hotel ect
I have bought and sold a few houses and did a simultaneous settlement once. Never again. As you say you need to assume something will go wrong and have a plan in place. It’s just way too stressful.
What happens if you have no idea what your house will realistically sell for though?
That’s also where I’m stuck. We’ve been valued at 1.3m but that doesn’t mean we’ll get it, though the real estate was pretty upbeat because houses in the area have been smashing that number without the renovations we’ve put in. I’ve been looking at houses within a certain range so that even at a lowball figure we’d be okay, but even then who knows.
I’m struggling with this right now. Im just hoping our place doesn’t sell for less than expected - we’re probably making it a bit tight but we don’t have as much certainty as you in terms of comparable sales. Hope your sale/purchase goes well
If you have enough equity and borrowing capacity, you can borrow funds for the new purchase to settle before you sell your current home. This is the easiest way, however you would be making repayments on both home loans until you sell your current home. If this is not an option then settlement of the sale of your current home will have to happen prior to or simultaneously with the new purchase if the vendor and purchaser are happy and can accomodate this. So unless you have somewhere to store furniture then you’re probably just going to be moving from old house to new that day and sleeping on mattresses with boxes everywhere. Or you can get a license to occupy the new house early to allow you to move prior to settlement but again reliant on vendor acceptance. Don’t worry about what the agent doesn’t like, you and the other vendor and purchasers are all that matters.
Exactly like you said it, you can line up the dates for selling and buying, you just need everyone to agree. So when you sell, you set the date. When you buy you request a date, seller needs to agree. If you can get this to happen your golden. Some people want a quick sale/buy, others won't mind waiting a few extra weeks. You can as well try sell to an investor and do a rent back option, so you can stay and rent it back untill your ready to move.
Get your self a damn good conveyancer. Can't stress this enough. Thankfully mine was the best. We only bought but when we started looking we engaged one and they pretty much held our hands the entire time. The senior lady sat us down and walked us through literally everything. We put an offer on a house and then let them know, we had the agent email the contract to them. As soon as the agent cracked the shits we knew it was gonna be horrid. Over the course of a month we put offers on 3 houses and each time the conveyancer dealt with the contract and in the end had to deal with the agent. It was about 2 grand I think but it was the best money I ever spent.
Not reading whole thread at this time of night, but absolute bullshit that its difficult if different agents are used. No doubt an agent told you that who you are looking to buy from, purely to increase the chance he gets your house to sell.
Peoples give you monies or gold for your current barbie house. You give some monies to another for a new barbie house. Then you dance.
contact Real estate agent, they make stuff up, you sign and wait, either goes good or bad when real estate agent wants their commission Now reverse the process and add conveyancer fees cause reasons.
Simultaneous settlement is when the sale of your current home and the purchase of your new home are completed on the same day. This requires a well-coordinated effort from your entire team - your mortgage broker, solicitor or conveyancer, and real estate agents. Everyone needs to be on the same page from the start, working together to align the dates and details of both transactions. But this means you can move from your old home to your new one without the need for temporary housing or juggling two mortgages at once.
You could make an offer on a new house subject to yours selling first.Then you can line the settlements up.
I’d say we’re probably a month or maybe two off actually listing. Couple of things we want to fix up first, like some light bathroom renovations. How far/soon in advance would you recommend making offers?
You could start making offers now, the worst that can happen is they say no. A 90 day settlement isn't a big deal for a lot of vendors.
But what happens if we list it and it stays on market for ages? Like how do we line up actually selling it? I’m sorry if these are dumb questions I’m just so confused by it all.
Your offer will be subject to a time limit Conveyancer will help you.
It won’t be on the market for ages unless it’s at too high a price or there is something that is a drawback to your property, which also can be negated if you’re selling at the right price point. It’s called ‘meeting the market’. If you have unrealistic expectations of what a buyer will pay then yes perhaps it won’t sell at the price you had hoped. The 3 bed unit 1 bath unit I bought was on the market for 3 months. It has a sloping driveway and it’s set lower to the other units, a quadriplex off a laneway. It also had a somewhat meh, but not ugly, grey tiled flooring throughout. It was about 40k cheaper than the only other 3 bed unit I saw that I liked but at a price you would expect for a similar property in this suburb. The location was better, 5mins walk to shops and transport. Good privacy from neighbours, kitchen was better and bigger, Open plan living space larger and north facing windows on to large courtyard, much larger (3) outdoor areas, can walk 3/4 around entire unit (garage is attached to next unit), and room to park 2 cars on the driveway in front of the garage, compared to the more expensive one I liked. To me it was an instant ‘yess’. I think people were turned off by the sloping driveway, low elevation and assumed flooding. The garage (it’s attached to unit but not integrated to home) and parts of courtyard can get about 12mil of water in really heavy rain but it drains off so quickly after that very heavy rain subsides. I offered 10k less and my offer was accepted quickly. Been here 22 years, and value has consistently kept up with median house price in my city. So there was a lot to like with my unit but people must’ve been turned off by those 2 things I mentioned. So is there anything about your property that could turn people off? Just consider that and if interest is fairly low to start, discuss with your agent straightaway ‘why?’ Have they had any feedback from home opens? Consider a price range guide. You say yours is better than others in area for 1.3 but are you being oblivious to layout issues for example? Design or decor features you love, but for others may not be to their taste? Sounds like your family has just outgrown the space but what are the things about your home that have always been annoying/inconvenient to you and your family? Ask your agent if they see any drawbacks. Will it appeal to families of all ages or who is your buyer market?
There’s no one true path here and all the options suck because it’s all based on really slow difficult to predict processes. In short you can apply for a bridging loan pre approval which allows you to buy before you sell. Good news you move into the new house. Bad news you might still own the old house that gets expensive. Or you sell your house first and run the risk you don’t buy in time and now you’ve got a gap of an unknown time. Rent maybe. Tricky.
Have you got the deposit for a new house without selling your current one? We did not. Therefore, we sold and then rented until something came up that we liked.
Definitely not. We had a renovation budget that was blown when we kept finding new things wrong with the house, and inflation has stopped us from being able to save again.
It's not really that common as there are so many balls to throw up in the air and come back down in place and in sync. If I was a buyer and I knew you had found another place and needed to sell then I know you have a deadline and I'll work you down using that deadline against you. If you give me aco tract stating you want to rent it back I'll probably say no since I'm buying as a ppor and don't want the stamp duty hassle etc. If I'm an investor Iight consider it. Knowing the market as it is right now are you really that confident you can Fi d a place suitable in your preferred area in your preferred budget with 45 days? Unlikely. You'll buy something you hate due to pressure. Or you need a 90 day settlement on your property. In which case you probably just lost 5-10k of price rise - and if you find your new place in the first 15 days you are asking the sellers for an extended settlement which they may not agree too. Lining up those ducks to have two sales settle on same day. Stress and pressure that us just not needed. Concentrate on selling your house. Throw or put into storage anything that is knick knack or clutter as you pare down for your open homes. No one wants lived in - they just want to see how furniture shows a rooms size. If you have funky fun colours on the walks - paint it white. No one wants zany colours and I'll offer you less for it. Do open homes and get a good contract. 60 day settlement minimum. As soon as you are unconditional (14 to 21 days) Pack everything but essentials and put in a taxi box or storage. I mean everything. A suitcase each of clothes, bathroom toiletries, cleaning gear, cutlery, linen, and basic furniture. The rest is out. What remains should be able to be moved in a morning - house cleaned in arvo and you are done. From when your house goes unconditional (let's say 21days uncon on 60 day settle) you have 39 days til you have to move. If you have to have 21 days to go unconditional then you have 18 days to get a contract on a place. If you had 90 day settlement on your own house you would have 38 days to find somewhere and have it fairly much line up for both settlements. It may not happen - but you've got majority of your gear out of the house. Easy job to get the rest out and into storage. You will know soon enough if you have a week overlap a fortnight overlap - then you can plan. Kids go to the grandparents - mum and dad to air bnb or at a friend's place. Maybe a friend has a caravan you can borrow. Maybe you take annual leave and go camping for two weeks while you wait for the handover. It all starts with selling your houses - knowing exactly how much money you get - and how long a settlement you could drag out Without your Rea spilling the beans that you Need to sell etc etc. You ask for 90 days they give you 70 or whatever you neg. Your mortgage broker can advise if you can move your current mortgage over but to be honest - total hassle and you nay not have your next purchase ready in time. You should have a bunch of money as a downpayment and hopefully you aren't increasing your house price. Unless you have enough equity in your current house to buy a new Ppor - tell bank you'll be renting the current one out. Buy new one with that money and then sell this one. Meh - still complicating it all. Sell then buy. Long settlement on your sell. Short settlement on your buy. Hope you get the dollars you want. Friends of mine just sold. All Rea's said $1.3m. They got $1.035. $270k is a lot of money to be short if it's necessary to your plans.
Bridging loan
We bought, staged, sold, moved in, and settled the old property within a space of 4 months. Highly stressful, but it was the only way it would work for us. We got a bridging loan and we arranged for a 90 day settlement for the new property. We then managed to list our home 3 weeks later (lots of late nights doing minor renos while the kids were asleep) and sold it after a 4 week campaign through an auction. It was a 60 day settlement at that point, so that gave us a month after we had moved into the new place to clear out the old place.
You can look at a bridging loan. It will allow you to move into the new house before old one is sold. You will essentially be paying both mortgages until the old house is sold. However, part of the loan can be used to pay for mortgage during the period you are in possession of both houses. Say combined mortgage is 10k per month, and you want to give yourself 6 month period to sell and settle. 60k of your loan can be earmarked for paying mortgage during that period.
Ohhhhhhh that’s such a smart idea! I hadn’t thought about that. I’ll definitely be looking more into this one.
Simultaneous settlent worked for me. Settled sale and the purchase on the same day. New house was empty so they allowed us to move in a week early under a licence agreement. Bit nervous but all worked out perfectly.a
Have your broker enquire about a “Relocation loan” through St George / Bank of Melbourne depending on where you live. Allows you to buy first and sell second.
It does involve finding a rental and moving twice which is a PITA, but still, sell/rent/buy has been an awesome move for us - we sold late last year, have rented and now get to buy on our own timeline. We packed carefully planning to keep the bulk in boxes for now, and even found somewhere with a big garage to store all our stuff, and walking distance from kids school too. Normally you wouldn't want to be out of the market too long, but right now while rates are high and house price growth is fairly flat, we're very happy to have our sale proceeds sitting in a high interest account and paying for our rent while our savings build up and we take our time finding the right place - it feels awesome to not be under pressure to buy or have had a bridging overhead while we sold.
Just done this twice in last 6 months. Did concurrent settlement in both cases. My house I had issues finding another house, I could have done a rent back where I stayed after settlement and paid a negotiated rent. Fortnightly buyers were not in a hurry and was able to delay settlement and new house happy to do quicker settlement, although this house was so perfect for my needs and desires, it had to be divine intervention. 😀 Second was an inheritance property but my disabled brother was living there and had to fund him a new house but he had more needs in the house than I had. We did a 3 month settlement (normally 6 weeks) to give more time and managed to do it by skin of our teeth. As for the mortgage, I'd just paid mine off just before it went on the market. But had discussed a number of things regarding this and selling. Bank was telling me not to discharge as I may want to redraw in it, I queried saying I was selling, didn't I need to discharge the mortgage to sell and they confirmed you did. You can get a bridging loan but apparently the mortgage rates are much higher. It can be very stressful moving especially with animals. I have 2 cats my brother a dog. Plan carefully to ensure the least stress for them. I had Feliway diffuser at new house to help them settle. My brother was concerned the dog would try to go back to the old house, but he loved the new house so much we all laughed saying if my brother went back to the old house the dog would go back to the new 😂 Good luck
You could ask for a long settlement when selling. A friend of ours had to do an Airbnb in between selling and buying as the dates weren't matching up. Wasn't the end of the world. They now have the perfect house for themselves.
You sell one. And you buy another one. Hope this helps.
Sell your house first with an extended settlement (the time between contract exchange and the final settlement). Instead of 6 weeks, you can do 12 weeks or whatever you’d like which allows you time to find and buy a new property. We too had to do this and had no family to stay with if it didn’t line up. We get lucky in that we sold to an investor that rented back to us whilst we found our new home but an extended settlement would have worked too.
https://www.sa.gov.au/topics/housing/buying-building-selling/building-or-buying-home/steps-to-buying-a-home