Should you sell before you buy or buy before you sell?
Faced with this eternal dilemma, we have several solutions for you.
Buying before selling is by far the most comfortable option since it allows you to work towards deadlines such as the momentous date of the new school year or other family obligations. Buying before selling often entails twice the financial outlay (property tax, wealth tax on personal property assets, annual fees, etc.) as well as the risk that the market will reverse.
The estimate of the bridging loan will be closely linked to the assumptions related to the sale of your property: bridging loan, loan rate, insurance, liquidity of the property on the market, and so on.
Your eagerness to sell could also negatively affect your state of mind and even the expected results. Keep in mind that a sale can take a long time, especially if the initial valuations are overly-favourable and unrealistic.
Selling before you buy can bring you certain advantages:
– Knowing how much you will have available to spend before you embark on your purchase.
Once you have defined your budget, you can carry out a more efficient property search.
By fully taking on the role of buyer, you can actively look for a place to live.
– Putting together a clear financial plan that will reassure the vendor from the outset. They are sure to take your offer more seriously.
– Being able to offer cash payment. The Paris market can be particularly hot. The “perfect” products always sell at high prices. Make no mistake: the price drop in Paris does not concern the most attractive properties.
– Being in a stronger position to negotiate. This is where the most propitious property transactions are made, such as when energy performance assessment is poor, the residence requires restoration work, the property is predominantly north-facing, the apartment is lower than the 3rd floor, lack of a lift, etc. In these circumstances, knowing your exact financial situation is a major asset.
Short-term furnished rentals can be restrictive, but they are a good compromise if you don’t want to rush into finding the ideal property.