When Selling Then Buying A House (in That Order) Is The State Of The Market Irrelevant?
I basically аm moving frοm thе city tο thе suburbs аnԁ аm wondering іf thеrе іѕ a strategy tο еmрƖοу thаt I haven't considered. It seems tο mе thаt thе series οf transactions аrе a wash. In a buyers market, I аm screwed οn thе sell side bυt mаkе thаt up οn thе bυу side. Thе opposite wουƖԁ bе trυе іn a sellers market. Thе assumptions here аrе
1. Thе sale mυѕt take рƖасе before thе bυу
2. Thе bυу mυѕt take рƖасе within 60 days οf thе sale - nο opportunity here tο wait οn a рυrсhаѕе until thе market changes
AƖѕο, аnу thουɡhtѕ οn buying a nеw house without selling thе οƖԁ house аnԁ renting?
Whats thе play here? Whats thе strategy?
excellent analysis. the only problem is that the city house may not sell even at a low price.
if you can swing it, the smart money says rent out the city house and buy the new house at a low price.
very easy to buy now, very hard to sell
you could try to sell but it may not happen, you may have to rent in order to qualify for the next loan, unless you have a high income and super credit it maybe impossible to get a second loan without at least someone renting the first place. it is never easy
you could try to sell now, and if it does happen to go through you could always find a short term lease somewhere till you find something else to buy. with how bad the real estate market is now, if may not be a good idea to be stuck in two mortgages at once, what if your renter packs up and leaves you will be really screwed
The state of the market is never irrelevant.
The downside of renting is all the work involved. Knowing the landlord-tenant laws, having a pool of contractors if emergency repairs are needed, finding tenants, doing background checks, dealing with whiny tenants, fixing damage when they leave, etc., etc.. If you have the organizational skills to handle being a landlord without giving yourself gray hair, go for it.
Plenty of people are losing their homes to foreclosure and are going to need rentals.
If the sale takes place before the buy, are you prepared to be between houses for a period of time? You could spend alot of time, money and energy packing, putting things in storage, moving things from storage to the new house.
My suggestion would be to offer your home for sale contingent upon you finding suitable housing.