Welcome to today's video, where we'll be discussing a common dilemma faced by home buyers in New Zealand: should you buy first or sell first when upgrading your home.

In the past year, the real estate market in New Zealand has experienced a significant drop, causing many potential homebuyers to hesitate. However, despite these challenges, we've noticed a growing number of clients seeking advice on upgrading their homes to meet specific needs and improve their quality of life.

Some clients find their current homes too small and are looking to move into a larger property. Others desire a location in a specific school zone or closer proximity to their workplaces. But the question remains: should you sell your current property first or buy a new one before selling? Let's explore the advantages and disadvantages of each approach.

Selling your property first before buying offers several benefits. Firstly, it allows you to make a more competitive offer when purchasing a new property without the condition of a sale. In a sluggish market, this can give you an advantage over other potential buyers.

Secondly, by delaying your purchase, you may be able to take advantage of lower house prices and maximize the value you get for your money.

Thirdly, selling your current property first gives you a clear understanding of your down payment amount. Combined with a pre-approved loan from the bank, you'll have a better idea of the property value you can afford.

But what if you sell your house and have nowhere to live? It's a practical concern. However, you can explore options like becoming a short-term tenant in the sold property after the sale or negotiating a longer settlement date with the buyer.

On the other hand, buying a new home first and then selling offers its own advantages. It ensures you always have a place to live and eliminates the need to move if you can't find a suitable house immediately. In a recovering market, you may also be able to sell your property at a higher price and buy a new one at a lower price.

However, this approach comes with uncertainties. The lack of competitiveness in buying offers and uncertainty about selling price may leave your budget for a new property uncertain. Moreover, there is the risk of insufficient funds if your house doesn't sell quickly enough.

Overall, selling your current property before buying may be more appropriate, but it's crucial to analyze your personal situation and plans in detail. We're here to tailor and review your plans to provide you with security and guidance.

We hope today's information has provided valuable insights. If you require further assistance or specific advice based on your situation, please don't hesitate to get in touch with us.

Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.