Should You Buy Before You Sell - Michael Kalinovski

Should You Buy Before You Sell ?

Michael Kalinovski

The short answer is to sell your current property first if you want to move, and buy a new home first if you want to stay put. This simple strategy has a few advantages:

Sell your current home first. You generally don't have to pay rent on two homes at once, so selling your current property first can save you money. But more importantly, it means that if you end up not liking the new home and decide not to buy it, paying rent is the only cost of that decision. If you'd bought a new home before selling your old one, you'd have paid both an option fee and rent on the new house while still paying the mortgage on the old one.

Hold back on buying a new home until after you've sold your existing home. This means you won't have to pay interest on a mortgage while waiting for your old home to sell. It also means that even if you decide not to buy a new home after all, or change your mind about where you want to live, you'll have gotten rid of an unwanted property and have no further financial obligations associated with it.