Many take a calculated risk, knowing they can afford it if their property doesn’t sell for a while. One vendor, for example, bought a house with great views near his one-bedroom, top-floor apartment. “I knew,” he commented, “that if the apartment doesn’t sell straight away, we could rent out the house for two or three years to cover the mortgage.”
Another vendor who was a conveyancer describes her experience: “The price for the other property was cheaper than it would have been in an active market and we thought it was worth grabbing. We are selling for a cheaper price too, but if we don’t sell, I made sure I had finance in place so we could still afford it.”
The key in both these two examples is that the sellers were managing their risks.
“You always want to make sure you’re not in a position where you have to take bridging finance, says financial planner Andrew Bowring. “That can cost you an enormous amount of money.”
The safest bet is provided by Steve Martin, a real estate association president: “It’s always a good recommendation to sell first, to know exactly how much you have to spend, and buy later. It’s always easier to buy than to sell, especially when you don’t know how much you have to spend. With properties now sitting on the market much longer before they sell, the risk factor is so much greater and a more conservative approach is required.”
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
No comments:
Post a Comment