Tips for buying and selling in the same market

Buying and selling at virtually the same time under the same market conditions can be profitable, but it can also be tricky to do. The right preparation makes it easier to buy and sell at once.

Things don’t always fall perfectly into place and you may find your next dream home before finding a buyer for your current property. Here are some tips to help you prepare for smooth and successful sales.

Find an experienced agent

For the best chance of success, keep it simple and choose one experienced real estate agent to coordinate both property sales. Your agent should have experience buying and selling at the same time to get you as close as possible to settling on both properties simultaneously.

A good agent can also negotiate special conditions on your behalf to get you the best deals at the right time.

Apply for bridging finance

If you buy a new property first and struggle to sell your home, you may need a bridging loan to cover your second mortgage until you sell your original property. A bridging loan is taken out on top of your existing home loan so that you can service two mortgages simultaneously.

Speak with your lender or mortgage adviser about securing a bridging loan before buying another property, as you may need significant equity before applying.

Extend your settlement period

Extending your settlement period can increase your chances of achieving simultaneous settlement. If you’re buying first, ask your agent to negotiate a longer settlement so you have more time to sell and settle on your existing property.

Keep in mind that your settlement period will depend on the flexibility of the vendor.

Get the right advice

Whether you have a question about your mortgage repayments or you’re looking to borrow in the future, a Mortgage Adviser can help you explore your options. Feel free to contact Ivan on 0275 775 995 or email ivan.urlich@mikepero.co.nz

Feel free to contact Ivan on 0275 775 995 or email ivan.urlich@mikepero.co.nz.

Ivan Urlich | Mike Pero Mortgages

Ivan Urlich is a financial adviser specialising in mortgages, his disclosure statement is available free of charge on request.

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