It’s good to do the groundwork first and understand your current financial situation. If you have multiple loans or properties, it might be worthwhile reaching out to your lender or broker – they can help explain the process and calculate what your finances might look like after.
You’ll need to work out how much your current property is worth and take out how much is remaining on your home loan – this will help you set a budget for your new place. Plus, this will also give you time if you want to spruce up your property and in turn – the property’s value.
If you’re simply selling to access equity, then the big question is: how much is left to pay on your home loan? You can then do the maths to see how much you’ll be able to keep. If your property secures more than one home loan, or is cross-collateralised, this can also impact how much you’ll receive.
Right, now you know how much money you may make (or owe) after you sell your property. Now to work out any fees that might pop up along the way.
Each agent will be different, but you could be paying for things like their commission, advertising, professional photo – plus, there might be additional costs if you plan to sell at auction.
You might be planning to invest a little, to get a little more for your place, so you’ll need to consider your budget. Will a fresh coat of paint do the job? Or, are you leaning towards a full room renovation? There are many ways to fund your renovation, depending on the size and budget.
Think about things like hiring a moving truck, people to help you move and other things like packing boxes. It might not seem like much, but it can quickly add up.
If you’re buying another property at the same time, there are a few government fees to consider, as well as settlement costs.