Yes, you may receive less when selling your current home.
But the more expensive property you’re buying may also cost less – and that’s where the numbers can become interesting.
The maths can favour you
Imagine your current home was worth $800,000 and your target property was worth $1.2 million.
If both fell 5%, you’d potentially sell for $40,000 less – but buy for $60,000 less.
That would shrink the price gap between the two properties by $20,000.
Of course, real properties don’t necessarily rise or fall at identical rates. But the example shows why upsizers shouldn’t automatically view a downturn as a reason to postpone their plans.
Buying before you sell?
Timing can be another challenge.
Bridging finance may allow some homeowners to purchase their next property before selling their existing one, reducing the pressure to line up both transactions perfectly.
It won’t suit every borrower, so understanding the costs and repayment requirements beforehand is important.
Thinking about trading up? Get in touch to explore your borrowing options and see what the numbers could look like.
