what owner occupiers should look for when buying a home

Owner Occupier’s Guide to Buying a Home

I want to sell my house and move to and a better location. I have already checked out a number of properties and have found one that would be ideal for me. The view is amazing, the house has a modern look, the backyard is big and the neighbourhood seems nice as well.

It would be great if I could sell my house first and then use the proceeds to buy my new house. But, I fear that I might lose my dream home, if it takes too long to sell my house. I am not sure if I will qualify for a new home loan as I do have an existing loan on my house. I have however, repaid most of my loan.

Please help me with my situation. What would be the best course of action for me?

Hi!

It seems like you really want your new dream home. Well, I would recommend you to apply for a guarantor loan if your parents can vouch for you. This way you can get a 100% loan for your new acquisition. Once you sell your old property, you can use it to repay your old debt and use the remaining fund as principal payment for the new loan. If you have substantial amount left over, your guarantee might be removed.

If you wish not to bother your parents then, you could also apply for a bridging loan. But for this, you must have a remaining principal of 60% or less of your property’s total value. On top of this, if you also have a very good income, you may be able to purchase and own both the properties, until you sell your old house. But, for this, you should be able to pay the total interest for the entire debt amount.

Regards,
Pine

Thank you for your suggestions. I am still not sure which option would be best for me. I am not sure if I will be eligible for a bridging loan. What should I do?

Hey,

Well good luck on your new purchase. Hope you are able to sort everything out. Just want to let you know to do all your homework before making the purchase. Sometimes if a deal is too good to be true, it is.

I think you should follow a few key points:

Get an engineer to check the building structures
Be sure to check for any insect infestation
Ask the seller about any improvements made on the property and find out who worked on it
Talk to the neighbours about any potential problems in the neighbourhood
Try to find out the value of similar property in the locale

If there aren’t any red flags, then you should be good to go.

Cheers.

Hello!

I think you should talk to an expert mortgage broker to help you make the right decision.

Regards,
Anita

How can you get a loan through your parents? as in you mean they will give your guarantee? how does this option proceed, can you elaborate a little? Plus, wont the financing company conduct a background check and see where else are you in debt and refuse to give addition debt burden?