Skip to content

Next Home Buyers

Whether it’s a growing family, the requirement for greater space or lifestyle needs, many home owners will encounter the prospect of upsizing. Although a financially and logistically daunting process, we are here with you every step of the way.

The upsizing journey

What are the options when looking to upsize to a bigger house? We have broken down four options and key considerations when evaluating the prospect of upsizing.

Sell Current Property First

A popular choice whereby your existing property is sold before you purchase your next home.

Key Considerations

  • You will know exactly how much cash you have which can guide the next purchase.
  • You may have to move to an interim residence between selling existing property and moving into next property.
  • Will enable you to purchase at your maximum as any debt tied to current home will be cleared in the settlement of that property., and the sale proceeds will be in your account ready for the next purchase.
  • Typically, the least stressful option.

Simultaneous Settlement

This is the process of arranging both the new purchase and the sale of existing property to settle on the same day. A notoriously complex and stressful process whereby both properties are reliant on each other.

Key Considerations

  • Will require the coordination of multiple parties and excellent skills of an experienced Conveyancer
  • Often clients will sell on a long settlement and then arrange their new purchase to settle on the same date.
  • Both settlements are reliant on each other so if one of them has an issue, the other will be impact causing delays
  • Moving day can be very stressful given the requirement to leave existing property and access new property in the one day

Bridging Loan

A bridging loan is used when you buy a new home before you have sold your current home. A short-term option that enables you to temporarily own both properties until you have sold your old property.

Key Considerations

  • Can be a very expensive process as you will be charged a high amount of interest during the period in which you own both properties
  • In most cases, lenders will only offer this option to those that have a large amount of equity across both properties
  • Bridging loans typically have a maximum loan term of 12 months. If you haven’t sold your current property before the maximum loan term, you may be subject to a default or the lender stepping in to assist with the sale of the property
  • Can give you the option to purchase a new property before you have sold existing property

Hold Both Properties

If you are in a position to purchase a new home whilst retaining your existing property then this option may be a savvy financial decision.

Key Considerations

  • If you have existing debt on current property, you will be limited in the amount of additional debt you can access for the new purchase
  • Important to weigh up the cost of the mortgage maintenance and repair of two properties
  • Fantastic financial return in the event that you can benefit from holding two properties
  • You can generate rental income from holding onto old home
Let's get started
We're here to help you make exciting decisions.
Get in touch
Stay up to date
With our monthly newsletter