Buying my next home
Upgrading to a bigger home for your growing family, or downsizing to a more manageable property,
can be a stressful process, with many things to consider and just like buying your first home,
it is only natural, that you will have many questions. We have compiled a list of some of the most
commonly asked questions, that have been asked of us, by clients seeking to purchase their next home.
How much should I save?
Generally, the amount required as a deposit for a second or subsequent property purchase is 10% plus costs (such as legal fees & stamp duty). However, just like purchasing your first home there are exceptions to this which depend upon both the lender and your personal circumstances. An example of this is using the equity in your current home. As you already have a home, you may be able to utilise the equity, or the value of your ownership in your current home as a deposit.
What are the costs of selling my home?
Agents commission
Legal
&
conveyancing fees
Marketing fees
Lender fees
your current mortgage.
Marketing fees
Agents commission
Legal
&
conveyancing fees
Lender fees
Such as the costs of discharging
your current mortgage.
which will need to be repaid to the lender upon settlement.
Do I have to sell my current home before purchasing the next one?
Not at all! Gone are the days were selling your home prior to purchasing a new one is required, with bridging loans, doing just as their name suggests, bridging the gap between selling and purchasing property. Bridging loans are a perfect solution for short periods of time, such as 6 – 12 months, and assist you to fund your new property with a loan, repaying the balance when your old property settles. With similar rates of interest that the average home loan, bridging loans provide a convenient and financially sound option for those not wanting to rush through selling their current property.
Can I keep my current property & convert it into an investment?
Absolutely! Converting your current property into an investment property, is a fantastic way to set up an additional source of income. However, before considering this option there are multiple factors that you will need to address such as costs, agents, finding a tenant, and of course your investment home loan.
