Finding a buyer for your current family home before purchasing a new one is usually recommended, for a number of reasons:
- If you buy a new property first, you may find yourself in the position of having to make mortgage repayments on two houses at the same time (if your house does not sell in a timely fashion, or for the price you expect). This might put you under unnecessary financial strain.
- With your current property sold, you’ll know exactly how much money you’ll have available for your next property. Being a cash buyer may give you better leverage on the pricing and terms of your new property.
Some financial advisors recommend that you never sell a property, but keep the first property as a rental, and use the income to help finance your next home. This is only realistic to achieve if you have the sufficient financial means to do so. Speak to a financial advisor or
First National Real Estate agent for advice.