If you are planning to downsize, it may be relatively easy to sell your home in today’s competitive residential property market but buying a new property could prove a lot harder.
With so much fierce competition for good properties these days, buyers who have their finances organised and can sign on the dotted line straight away are more likely to get the keys to their dream home faster than those who follow more traditional paths.
That’s why many smart downsizers are flipping the tables by buying their new home first and then selling their old one - with the help of a bridging loan. It is now easier than ever for downsizers to get a loan prior to selling their family home. At Bridgit we believe that Australian homeowners with good credit deserve better than they have been getting in the past from traditional lenders. We offer same day approval so you can access the equity in your property. No more waiting for days on end for a loan approval to come through.
Benefits of a bridging loan
- You can spend time looking for your perfect home before selling your property
You probably have a good idea about what you want from your future home - fewer stairs, less lawn? A spare room for the grandkids or visitors? Easy walk to the shops? If you are not prepared to settle for second best, then having the time to inspect a number of properties gives you a distinct advantage. You may have a much better chance of finding the home that fits all of your criteria. With a bridging loan you can spend the time searching for the perfect property and make the purchase. Then organise the sale of your home.
- Knowing your purchase power
With a bridging loan, you can make an offer as soon as you find your perfect home. You know exactly how much you can spend.. This gives you a distinct advantage over other would-be buyers. The idea that a buyer is 100% ready to do is very attractive to a seller and their agent as they know there will not be any unnecessary delays with the sale. You can put in an offer before auction and beat other buyers to the front gate.
- Don’t miss out on an opportunity
If you find your perfect future home and have not yet sold then you can get a bridging loan very quickly thanks to Bridgit’s proprietary technology. While traditional lenders may throw up obstacles to providing a short-term loan, Bridgit delivers same day approval and funds in as little as 48 hours.
- Buy and sell in the same market
It is very important to be able to buy and sell your home in the same market. With property prices predicted to rise throughout 2022, you do not want to sell your property and then spend six months looking for a new home while prices continue to go up. The property market moves quickly. A bridging loan gives you the power to buy a new property and organise the sale of your existing home in the same market, so you avoid big fluctuations in price.
- Avoid the costs of temporary living situations while you wait to buy again
It’s a costly headache - you sell your home and cannot find your next property during the settlement period. Suddenly you have to find somewhere to rent for the short-term - not an easy proposition. Or worse still, you are forced to move in with family or friends, disrupting their lives as well as your own in the process. Furniture must be stored. You pay for removalists not once but twice. Costs add up. You might feel so pressured by the situation you find yourself in, you compromise and buy a property that does not fit your criteria. A bridging loan provides the solution to a scenario most of us want to avoid.
Conclusion
A bridging loan can give downsizers the competitive advantage in today’s stiff market. You can now have the time to buy the property you really want. It also removes the stress of selling a property then having to turn around to try and buy another one quickly. We have helped many customers find their dream home without the associated stresses of being in the property market for a long time.
Find out more about Bridgit loans.
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