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Buy First Or Sell First · That Home Loan Hub

• 0:10
  SPEAKER_00: Should I stay or should I go now?
• 0:13
  SPEAKER_01: Hello, Megan.
• 0:14
  SPEAKER_01: Hello.
• 0:14
  SPEAKER_01: What are we talking about?
• 0:16
  SPEAKER_01: We're talking about should you sell first or buy first?
• 0:19
  SPEAKER_00: Oh, sorry.
• 0:20
  SPEAKER_00: I was in the wrong song.
• 0:23
  SPEAKER_00: Should you buy first or sell first?
• 0:25
  SPEAKER_00: How does that work?
• 0:27
  SPEAKER_01: Well, it's the number one question we get asked at every appraisal.
• 0:31
  SPEAKER_01: I want to sell, I want this other kind of house or I want to move locations.
• 0:35
  SPEAKER_01: Should I buy first or should I sell first?
• 0:38
  SPEAKER_01: And the answer is it depends.
• 0:41
  SPEAKER_01: Have you got a backup plan?
• 0:42
  SPEAKER_01: So, on one hand, if you sell first, it gives you the advantage of being a cash buyer and you know your budget and you get a chance to talk to your bank.
• 0:51
  SPEAKER_01: Correct.
• 0:51
  SPEAKER_01: Mortgage advisor.
• 0:52
  SPEAKER_01: Me, me, they're gonna talk to me.
• 0:54
  SPEAKER_01: Talk to your mortgage advisor.
• 0:56
  SPEAKER_01: Yeah.
• 0:56
  SPEAKER_00: Who's the one and only.
• 0:58
  SPEAKER_01: We have had a lot of people recently say, Oh yeah, I'm ringing my bank.
• 1:02
  SPEAKER_01: And I'm like, no, cool, Zeprinesso.
• 1:05
  SPEAKER_01: Sorry.
• 1:06
  SPEAKER_01: Yeah, so you can get all your finance lined up, you know how much money you have to buy, and you're a cash buyer, which means that you have less conditions on your offer.
• 1:15
  SPEAKER_01: You're more likely to get accepted.
• 1:18
  SPEAKER_01: On the other hand, you could be homeless.
• 1:22
  SPEAKER_01: It's not ideal.
• 1:24
  SPEAKER_01: So you want to make more ideal.
• 1:26
  SPEAKER_01: No, you want to make sure that you've got somewhere to go.
• 1:29
  SPEAKER_01: If you've sold, have you got a family member you can move in with?
• 1:33
  SPEAKER_01: Have you got a caravan somewhere?
• 1:35
  SPEAKER_01: Have you got access to a short-term rental option?
• 1:38
  SPEAKER_01: Or can you farm your kids out and couch surf or whatever?
• 1:42
  SPEAKER_01: What's your plan?
• 1:43
  SPEAKER_01: If you if you sell your house fast and you're a cash buyer and you haven't found something, what is your plan?
• 1:49
  SPEAKER_01: So that's really important.
• 1:51
  SPEAKER_01: And then on the other hand, if you buy first, it's great because you can take your time, you can look around in the market, you can find your ideal house without rushing.
• 2:03
  SPEAKER_01: And then once your offer's been accepted, you can list your property and sell it.
• 2:08
  SPEAKER_01: The downside to that is if you're subject to sale, the homeowner that you're trying to buy the property of is going to have less peace of mind and they might prefer a cash offer because they would have to wait for you to sell.
• 2:24
  SPEAKER_01: Also, if you sell but you don't get as much as you initially think, you might need to renegotiate your purchase price with the house that you're trying to buy, and they'll be aware of that because their lawyer will tell them.
• 2:37
  SPEAKER_01: So it does make your offer more attractive if you can be cash, but we also don't want people to be homeless.
• 2:46
  SPEAKER_00: No, we never want anyone to be little hermits running around.
• 2:49
  SPEAKER_01: No, no.
• 2:51
  SPEAKER_01: So yeah, it's it's a case of lining it all up.
• 2:54
  SPEAKER_01: Also, if you are trying to make an offer on a house and you haven't met with an agent, you haven't done your home maintenance, you haven't had photos done on your property, you're not prepared, you're at a disadvantage over somebody who needs to sell but has had their photos done, they've got their internet write up ready to go, their house has been, you know, prepared and staged, and all they need to do is say to their agent, Cool, my offer's been accepted.
• 3:25
  SPEAKER_01: Can you make my property live?
• 3:27
  SPEAKER_00: Mmm, I love that.
• 3:29
  SPEAKER_00: And I think we had an episode about it before, didn't we?
• 3:32
  SPEAKER_00: When you get super mega prepared before.
• 3:35
  SPEAKER_01: Super mega, mega prepared.
• 3:38
  SPEAKER_01: I love it.
• 3:39
  SPEAKER_01: See what I did there?
• 3:40
  SPEAKER_01: I love it.
• 3:41
  SPEAKER_00: And I think it's super important for people to know this because often people are scared that oh, if I get the agent around, if I get all of those things ready, then I have then I have to commit and I have to do this.
• 3:52
  SPEAKER_00: But you don't, right?
• 3:53
  SPEAKER_01: Like no, we love looking at houses.
• 3:56
  SPEAKER_01: That's literally what we do all day.
• 3:58
  SPEAKER_01: We look at houses.
• 3:58
  SPEAKER_01: I enjoy coming to people's house.
• 4:00
  SPEAKER_01: If there's a cup of tea in it for me, that's great, but I'll still look at their house.
• 4:04
  SPEAKER_00: I love it.
• 4:05
  SPEAKER_00: I love how noisy you are.
• 4:07
  SPEAKER_01: Yep.
• 4:08
  SPEAKER_01: Best job ever.
• 4:09
  SPEAKER_00: I love it.
• 4:10
  SPEAKER_00: And I see this a lot because in the market that it is right now, when the prices are great to buy, but not that great to sell, it could be advantageous to just see if you can secure something, buy it, get an approval for that bridging loan.
• 4:26
  SPEAKER_00: And we can dive into that in the next episode.
• 4:28
  SPEAKER_00: What's the difference between the closed bridge and open bridge?
• 4:31
  SPEAKER_00: And in this situation, it's called an open bridge, where you the you the bank allows you to buy the second property without selling yours first.
• 4:39
  SPEAKER_00: Then you move into the house, so you've got only one moving cost instead of two.
• 4:43
  SPEAKER_00: And I mean, let's face it, who wants to live as the family for a long time?
• 4:47
  SPEAKER_00: Nobody.
• 4:47
  SPEAKER_01: Nobody.
• 4:48
  SPEAKER_00: And you know, you found your dream home, you want to buy that one, you secure that first, you move in, and then you can clean up the old house, stage it the way you want to stage it, and sell it once the market picks up.
• 5:00
  SPEAKER_01: That would be brilliant.
• 5:01
  SPEAKER_00: Yeah.
• 5:02
  SPEAKER_00: I mean, if the financial situation allows, I have plenty of clients that actually went down the ABB route as well.
• 5:08
  SPEAKER_00: If the house is ABB able, then they move out without selling it first, waiting for the market to recover, A B, because Airbnb doesn't usually do as much damage as if you were renting.
• 5:17
  SPEAKER_00: And I mean, if you put proper rent tenants in, then you don't want to kick them out either.
• 5:22
  SPEAKER_00: Yeah.
• 5:23
  SPEAKER_00: If you're still planning to sell it down six months the line.
• 5:26
  SPEAKER_00: So um, so yeah, that's another option as well.
• 5:28
  SPEAKER_01: And it's it's interesting seeing that how that plays out financially as well, because if you are gonna do a bridge, you know, you need to look at the market.
• 5:37
  SPEAKER_01: It are things selling quickly, how long are you going to be paying for both the property's rates and any other costs?
• 5:44
  SPEAKER_01: And how quickly is your house likely to sell?
• 5:47
  SPEAKER_01: So that you don't put yourself under financial pressure either.
• 5:50
  SPEAKER_01: So yeah, it's a catch twenty two, isn't it?
• 5:52
  SPEAKER_01: Do you move first or do you sell first?
• 5:56
  SPEAKER_00: Yeah.
• 5:57
  SPEAKER_00: Okay.
• 5:58
  SPEAKER_00: Beautiful.
• 5:58
  SPEAKER_00: Thank you so much, Megan.
• 6:00
  SPEAKER_00: See you again next time.
• 6:01
  SPEAKER_00: Thank you.