How to buy next property

[Jayro]

Just after some advice. If this is in the wrong section pls relocate it.

We are in a situation where we have just listed our IP in sydney for sale. We are selling it and our PPOR on the central coast in order to purchase a nicer PPOR.

Our problem is this. We are on one wage until Jan as wife is on maternity leave. Bank has given ok to borrow the funds for the new place if we sell the 2 places and come up with $100k deposit Iv calculated we will safely have.

Now our issue is that the property we were hoping to buy has become even keener to sell due to the failing health of the owner. It was at $400k then $385k and the RE called me today to say if we are interested they will take $345K as it will be listed for $359k as of Monday. My parents purchased in the same estate 4 yrs back for $415k. All similar homes. The standard estate 4x2x2 type property.

We would very much like to buy the home but obviously not able to until our 2sell. Is it a matter of too bad can not do anything till ours sell or is there some clause or other way around it?????

Not a fan of a bridging loan.

Thanks for an advice.

Cheers Jas!

 

[marg4000]

Can you negotiate a longer settlement to give you time to sell one or both properties?

Our son bought his current PPOR on a 5 month settlement as the previous owners were building and it saved them a double move. Son was keeping his previous PPOR as an IP so was happy to stay there a bit longer to get such a good buy.
Marg

 

[tubs]

If you say your PPOR will be converted to an IP you should be able to include this in your serviceability calculations. I guess that the problem is they're including your repayments on your current PPOR in their serviceability calcs.

 

[Jamie_D]

Although you're not a fan a bridging loan is your best option.

Do you have enough equity in PPOR and IP?

 

[Qlds007]

Rather than bridging you may want to look at a relocation loan where the payments can be capitalised on the basis that the property will be sold and you make your payments on the assumed end debt.

 

[tobe]

Are your properties on the market yet? Seems to me perhaps like the new purchase, you too might have to lower your price expectations for a quick sale.
The alternative is bridging/relocating loans, which are a lot nicer than they used to be. Most lenders have the same interest rate as their normal loans, and calculate daily and capitalise monthly. Most will allow you to pay the interest as it accrues if you like. The downside is the bank can set the price you must sell at if you fail to sell within a certain time, but if you are realistic in your price expaectations, this shouldn't be a problem.
You could agree to a long settlement for the new purchase, and hope to sell in the meantime. Again the downside is having unrealistic expectations of your sale price, and getting stuck.

Why not agree to a long settlement, arrange bridging finance, and then move heaven and earth to sell your properties in the menatime? that way you have a plan b if your buyer cant settle before your purchase settlement.