Selling up your current residence and moving into a newly built home can be a little like navigating stepping stones across a river. Letting go at one end can be nerve-wracking, feeling as if one is stepping into a no-man’s land ‘between addresses’, before safely arriving at the doorstep of your luxurious new residence.
As with so many things in life, timing is key to bridging the gap and ensuring a smooth transition from one home to the next.
Building a house is a process which involves more than the length of the construction time. Understanding the extent of this process allows you to move toward a targeted date and coordinate financing and logistical details with a goal in mind.
This is where Wisdom Homes excel. We provide you with a clear step-by-step guide to the timing of your journey to a sumptuous new home. Each project is unique but when building with Wisdom Homes, we ensure a transparency of the build process from start to finish for your individual scope of works.
A myriad of outside factors aside from honing, customising, reviewing, finalising plans and selecting fixtures and fittings, influence build time. These include submission of documents to the appropriate government bodies for approval such as:
- Engineering & Slab Plans for the construction of the home.
- Waterboard Approval
- Approval of your building plans with Council/Private Certifier
- Construction Certificate
Picking a path
Few of us can afford to buy one home before selling our current one and thus are faced with a number of options including:
- Sell and lease back
- Sell and move into temporary accommodation
- Bridging loan
Let’s look at how each of these options work and which one may be the best for your situation.
In a ‘hot’ market, where neighbouring houses are selling quickly and for premium returns, it can be wise to take advantage and sell your current home. An ideal situation is to sell with the agreement that you can rent back the home at an agreed ‘fair market’ value. This option provides you with fast access to capital and avoids the expense and hassle of moving twice. It also avoids the need for cumbersome multiple address changes and mail forwarding.
If renting back the property is not an option then selling and moving into temporary rental or other accommodation becomes necessary. Local storage companies can be used to act as a repository for furniture and larger household items if needed.
A bridging loan is an amount of money borrowed from a financial institution which covers the interval between the buying of one house and the selling of another. The beauty of these loans is that you can remain in your current home until your new one is ready to be occupied.
Ideally you can place your current property on the market and adjust the settlement period to coincide with the completion date of the build. Settlement periods can be set as part of the sales agreement but are generally 30, 60 or 90 days.
If you decide to take out a bridging loan to finance your new build, organise this prior to signing your build contracts. This ensures that you have approval prior to making any commitments.
Consider the property market and listen to real estate forecasts. In an ultra hot market which is predicted to cool off in the coming months, the time to sell maybe now. Additionally, if the timing of selling your home will coincide with the middle of winter, it may mean you won’t be getting the best price for your current home.
At Wisdom Homes, our team is committed to making the transition into your perfect forever home, as seamless as possible. We have almost 20 years experience as award winning builders and are Sydney’s most trusted and respected builder of house and land packages and knockdown/rebuilds.
Discover the difference the expertise and excellence of Wisdom Homes can make to your home building experience. Visit our website or make an appointment to chat with one of our friendly consultants today on 1300 855 775.