simultaneous settlement dilemma

I have been hearing a lot about the option of simultaneous settlement. Actually I and my girlfriend have been thinking of buying a new place. But the thing is that she already owns a place. We have been living here for the past five years. We are both in mid thirties. But since we are thinking of getting married and starting a family, we have decided to look for a bigger place. Both of us are schoolteachers and cannot really afford to change or quit the jobs at the moment. We earn around $ 30,000 per annum each. But since we are planning for a future and a family, we do not really want to use up much from our savings as well. What would be the best thing for us to do under such circumstances? We would be happy to have any kind of suggestion or guidance.

Thanks!

Hi there!

Well, honestly speaking, I do not recommend you to go for simultaneous settlement at this point of time. You are in no position to afford that kind of money at the moment and yes, I am talking about a rather huge sum. Not only would you be looking for a buyer for your old place, you would also be searching for a new home. Neither of you seems to have anybody who would like to act as a guarantee for you guys. I would suggest you to go for bridging loan but even that is possible only if you owe 60% or less value of your home. Even in that situation, since you are planning for kids and marriage and unwilling to use up your savings much, I would not advise you to try simultaneous settlement. You may have to sell your current property for less than the desired value and purchase the new one for so much more than it actually costs. Moreover, if you fail to sail your old house in the designated interval of time, you may even end up losing your deposit in the new home. This option only works best for sale between friends or family members. So, I would rather suggest you sell the old home first, rent a place somewhere until your new home gets finalized and then move in. That would be the best for you. Good luck!