When buying property, the 'conventional' wisdom is that you should always sell before you buy. However, in a market characterised by strong growth, it may be prudent to consider reversing this strategy.
When selling first in this present market you may find it difficult to find a suitable property to buy, due to high demand and short supply, or being outbid at highly competitive auctions.
In a stable or falling market, it makes perfect sense to wait until you have secured the sale of your property before you commit yourself to a further purchase.
However, in a rising market, once a property is sold, the equity stake ceases to grow in the same proportion as the rising market. This places a limit on your purchasing capability. The longer the settlement period on the existing property, the bigger the gap and your potential problem.
If you do have the capacity to purchase now before you sell and brunt the bridging finance (which isn't as bad as we all expect), then as things are starting to pick up again with record low interest rates and increascing auction clearance rates.
For independent advice on a property's true market value, please contact our team today on 02 9960 1066 or enquiries@pkproperty.com.au.