Is the fear of not finding a new home holding you back?
The current housing market in Perth is proving challenging for those considering selling their property if they’re concerned about the lack of available homes to buy. With such a strong level of demand present right now, homes that are being well presented to market are being snapped up in days leaving those considering selling concerned about the risk of homelessness, having to enter the equally competitive rental market, or even having to move in with friends or family. This situation creates a catch-22: the reluctance to sell due to the fear of not finding a new home means even fewer homes are available for purchase.
But we have solutions! We have successfully helped a number of local homeowners navigate past this conundrum and into their next dream home. Let’s look at some of these possible solutions:
Bridging Loans
If you decide to buy before you sell your home, you can apply for a bridging loan which will allow you to purchase a new property and cover the associated costs, like stamp duty, while giving you up to six months to sell your current home. Our finance broker can provide you with more information about this option.
Extended Settlement Times
Talk to your agent about negotiating a longer settlement time, alleviating the pressure of not finding a new home in such a limited timeframe. We have recently been able to negotiate extended settlement time frames of up to 4 months.
Lease-back
Your agent can also negotiate a period post-settlement during in which you lease the property back from the buyer, granting you with ample time to find your next home.
Subject to Buying
Consider adding a clause to your contract that allows you or the buyer to cancel the contract within a timeframe should you not find a suitable home. Giving the buyer this option may sound risky, however given the current market there is likely to be multiple buyers for your property making it easy to re-market the home and find another buyer. Any agreement that adheres to a clause can be applied.
Rules of a clause include:
- What are we agreeing to
- Who is party to it
- Who is responsible
- In the event it doesn’t happen – what are consequences
A good lawyer will not have any issues drafting such a clause and given that REIWA do not provide a standard annexure to cover this, legal advice and drafting is in my opinion, absolutely essential in this scenario.
While the current market dynamics can be challenging, we have decided to be creative to find flexible solutions for our clients – think outside the box! If you want to discuss any of these options in more detail or would like us to find a solution specific to your needs, call me on 0447 120 125 or email james@mgpproperty.com.au
