Bought before selling...what to do???

Commited the cardinal sin of buying before selling. We attended an auction the same day our house went on the market and got too good a deal to pass up. It is on a 120 day settlement.

Our house is open this weekend for the first "real" time (it was open one day last weekend but had not been on the net long)

I know I shouldn't be hitting panic buttons at this early stage but I am usually quite cautious so it is making me very nervous.

Bridging finance isnt an option should we not sell in time (or bank has said no perhaps another lender would say yes??? Not sure)

What options are open to me should we not sell in time. I had thought about renting both properties out and moving back with the parents until we could sell the original one.

Can anyone assist with advice or just words of comfort to someone who is rapidly heading towards a bottle of red and a few valium???
 
Can anyone assist with advice or just words of comfort to someone who is rapidly heading towards a bottle of red and a few valium???

Yes, do not mix medication and alcohol. Do one or the other but not both together. :p

You are experienced enough to know better than buying before selling - but 120 days is a long time in real estate. What kind of price bracket are you in and what kind of selling period does your REA expect for your PPOR?
 
Cross your fingers? :p

We've got it worse - our first house didn't sell when we moved here so we still have it, and now we're building so don't have the luxury of a fixed 120 days so I have a feeling we'll end up keeping that one too. So for people who only want/need 1 house, I can see us inadvertantly having 3.

Get your current house appraised for rent by a local PM so at least when you go looking for finance you have that handy - it does increase what you can borrow.
 
Your bank may not do bridging, or may not have the same policies for bridging as other banks. As a rough rule of thumb, if your exisitng property is at around 60% LVR or less, and the property values are similar to the new one, you can do bridging. If its higher than that, you might still be able to, but perhaps for less than 12 months, or only if you can prove servicing of the peak debt (in which case you wouldnt need to do bridging anyway!).
 
Our property is in the 520-550k mark. In the last month properties that are reasonably priced (we priced ours at exactly what the agent told us too) seem to be sold in 3 to 4 weeks (Melbournes west).

Our loan is at 315k so just under the 60% I would think. The bank does do bridging (NAB) but thinks with our income we couldnt manage it. Our new loan without this one selling would need to be about 610k so our total loans would be 925k (faints) Perhaps an interest only investment loan at 80% LVR on the current property (rent would be about $450pw) and the balance for our new home. Our combined income is about 100k before tax. We have 3 kids

Any thoughts on that?

Also is there somewhere I can go to online to imput all the info and see if there is a lender that will accomodate us if we need to? Echoice used to do it but now you have to speak to them directly and I am not at that stage yet
 
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Commited the cardinal sin of buying before selling. We attended an auction the same day our house went on the market and got too good a deal to pass up. It is on a 120 day settlement.

Our house is open this weekend for the first "real" time (it was open one day last weekend but had not been on the net long)

I know I shouldn't be hitting panic buttons at this early stage but I am usually quite cautious so it is making me very nervous.

Bridging finance isnt an option should we not sell in time (or bank has said no perhaps another lender would say yes??? Not sure)

What options are open to me should we not sell in time. I had thought about renting both properties out and moving back with the parents until we could sell the original one.

Can anyone assist with advice or just words of comfort to someone who is rapidly heading towards a bottle of red and a few valium???
The only quick way out would be to auction the property within the timeframe and the settlement of the next property,auctions can also work both ways,but from my experience if they don't sell prior or on the day then most sell within 4 weeks..good luck willair..
 
Full read and understand the section32 for the purchased property. More so around the penalties for not settling on time (i.e. > 120days); this is to prepare for any delays in settling the existing one.
Most of the S32's list only a financial penalty ... with interest rates upto 16%. This may not be a bad thing (e.g. 700k purchase @ 16% = $307 per day).
If it include other unfavourable clauses (loss of deposit, property defaulted back to the vendor, etc etc etc) then ensure you have a switched on property solicitor for conveyancing.
good luck
 
Commited the cardinal sin of buying before selling. We attended an auction the same day our house went on the market and got too good a deal to pass up. It is on a 120 day settlement.

Say a few "Hail Marys" a few more "Our Fathers" and maybe get a priest to through some water over you while saying a few latin words.
And be prepared to pay a lot of fees & interest for your sins.
 
Discuss the bridging option with a broker. Nab have an odd way of working out serviceability with Bridging, that other lenders dont necessarily have.
 
Auctions unfortunately dont work in this area (Point Cook) last 2 I saw did not have a single bid. Will have the conveyancer check out the Sect 32 if it is still on the market in a months time (fingers crossed that wont be the case)

Thanks tobe I will try again with the NAB in a month if we dont have any luck selling. Perhaps get a mobile banker out here to go over all our options.

Again are there any websites that you can use to check servicability?
 
120 days is loads of time, Penny. Just be realistic about the price you want. You got a great deal on the place you bought, so accept the fact that someone might get a great deal on the place you sell.

Be sure to synchronise settlements, too. You don't want to have to move out of your house and have nowhere to go. A longer settlement can be attractive to potential buyers, too.

I would hold off on the booze and pills for a little while.
 
LOL thanks yes I know I have loads of time I am one of those anal people who have to be in control of everything. Funny that I can't control the property market. It has only been on the market a week and already I am half demented. We are quite flexible on price (I think the agent was stunned we put the range lower than he suggested)

We want to sync. settlements. We can move the 120day one forward if we need to which is good.

I think if I had a backup plan I would feel less stressed is all.

Can I just hold off on the pills and have the booze?
 
LOL thanks yes I know I have loads of time I am one of those anal people who have to be in control of everything. Funny that I can't control the property market. It has only been on the market a week and already I am half demented. We are quite flexible on price (I think the agent was stunned we put the range lower than he suggested)

We want to sync. settlements. We can move the 120day one forward if we need to which is good.

I think if I had a backup plan I would feel less stressed is all.

Can I just hold off on the pills and have the booze?

Dont panic it is an easy fix, how much did u pay for the new property?
Have you paid any deposit?
 
New place was 635k 10% deposit paid. Would love to hear an easy fix!

Ok will wait til later in the day to open that merlot
 
^ITA with wylie's advice. I'd be shocked if someone couldn't put this deal together. Neverthless, the sun is certainly past the yard arm by my watch so perhaps have a celebratory drink anyway.
 
Full read and understand the section32 for the purchased property. More so around the penalties for not settling on time (i.e. > 120days); this is to prepare for any delays in settling the existing one.
Most of the S32's list only a financial penalty ... with interest rates upto 16%. This may not be a bad thing (e.g. 700k purchase @ 16% = $307 per day).
If it include other unfavourable clauses (loss of deposit, property defaulted back to the vendor, etc etc etc) then ensure you have a switched on property solicitor for conveyancing.
good luck

yes loved it when they paid me it . was over 400 a day it cost them

finance is getting very hard to come across . the auction might be you best bet. good luck and hope things work out
 
There are calculators around, but are more of a sales tool than anything useable. I'd contact one of the brokers on this forum, it wont tke long for them to give you a couple of options, based on your circumstances and diferent lenders policies, rather than a generic how much can you borrow.
 
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