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Stephen Doyle, Head of Distribution at Bridgit, explores the advantages of a ‘buy now, sell later’ approach using bridging finance.
What are the benefits of ‘Buy now, sell later’?
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1. Avoid temporary living costs
Did you know an average of nine weeks pass between selling and buying a new home?
Our research* found 52% of movers needed to fork out for a temporary home while waiting to buy their next property, with 26% needing to move into temporary accommodation twice. Aussie homeowners spent an average of $8,300 on temporary living arrangements, with some costs exceeding $40,000.
With a bridging loan, homeowners can secure and move into their next property and sell on their own terms, without the need to navigate short-term accommodation, double mortgages or the rental market.
2. Capitalise on the best property opportunities
In a competitive property market timing is everything. Bridging finance gives your clients the flexibility to act quickly if they’ve already found their perfect property and want to jump on the opportunity.
On the other hand, our research found that 70% of Australians feel pressured to buy quickly after selling, and 20% felt they didn't find their perfect home.
In this instance, bridging can provide breathing room for clients who want to take their time to find the perfect home without feeling rushed or pressured to compromise.
3. Access equity to maximise a home’s value
Bridging finance allows homeowners to tap into their home’s equity to conduct value-adding cosmetic improvements prior to sale, helping to increase their home's value prior to sale.
Plus, being able to sell on their own terms means homeowners can time the market to their advantage and list their property when they like, without being held back on a purchase.
4. Added flexibility on settlement dates:
Navigating two property transactions at once can pose added complexity and risk, particularly as 11% of settlements in Australia are delayed**.
This could mean a seller could lose a deposit or face a penalty if their sale unexpectedly falls through at the last minute.
Bridging finance eliminates this pressure, allowing clients to manage one transaction at a time, reducing stress and ensuring a smoother process.
Want to learn more?
Schedule a call with our team to learn more about Bridging finance today.
*Source: Bridgit’s Australian Home Loan Customer Report, speaking with 1,011 sellers from June to July 2022.
**Source: https://www.pexa.com.au/content-hub/settlement-timeframes-remain-steady-for-australian-consumers/
Eligibility and approval is subject to standard credit assessment and not all amounts, term lengths or rates will be available to all applicants. Fees, terms and conditions apply.
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