Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
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The “buy first or sell first” decision sounds simple until you’re the one staring at listings, talking to the bank, and trying to line up settlement dates without turning your life upside down. We sit down with Megan to unpack the real-world pros and cons we see every week at property appraisals, and why the most honest answer is still: it depends.
We talk through what selling first can give you in the New Zealand property market, including clearer budgeting, stronger confidence with your mortgage adviser, and cleaner offers that can beat more conditional competition. Then we name the obvious downside people try not to think about: if you sell quickly and haven’t bought yet, where are you actually going to live? We share the practical backup plans that reduce stress and stop you making a rushed purchase.
On the flip side, buying first can let you take your time and secure the home you really want, but a “subject to sale” condition can make vendors nervous and can weaken your negotiating position. We also dig into preparation, why getting your home ready early does not lock you in, and how being photo-ready and launch-ready can change your options overnight. Finally, we touch on bridging finance, including open bridging loans, the true cost of holding two properties, and why timing matters if you’re considering selling later or even a short-term Airbnb-style hold.
If you’re planning a move, hit play, share this with someone house-hunting, and subscribe for more practical NZ real estate guidance. After you listen, what’s your biggest worry: competing as a conditional buyer or the risk of selling before you’ve found the next place?
You thought it's not possible or the dream is too far away? Come to my webinar and I will show you, you are much closer to your dream, than you think you are!
Hello, Megan. Hello. What are we talking about? We're talking about should you sell first or buy first?
SPEAKER_00
Oh, sorry. I was in the wrong song. Should you buy first or sell first? How does that work?
SPEAKER_01
Well, it's the number one question we get asked at every appraisal. I want to sell, I want this other kind of house or I want to move locations. Should I buy first or should I sell first? And the answer is it depends.
Have you got a backup plan? So, on one hand, if you sell first, it gives you the advantage of being a cash buyer and you know your budget and you get a chance to talk to your bank. Correct. Mortgage advisor. Me, me, they're gonna talk to me. Talk to your mortgage advisor. Yeah.
SPEAKER_00
Who's the one and only.
SPEAKER_01
We have had a lot of people recently say, Oh yeah, I'm ringing my bank. And I'm like, no, cool, Zeprinesso. Sorry. Yeah, so you can get all your finance lined up, you know how much money you have to buy, and you're a cash buyer, which means that you have less conditions on your offer. You're more likely to get accepted.
On the other hand, you could be homeless. It's not ideal. So you want to make more ideal. No, you want to make sure that you've got somewhere to go. If you've sold, have you got a family member you can move in with? Have you got a caravan somewhere? Have you got access to a short-term rental option? Or can you farm your kids out and couch surf or whatever? What's your plan? If you if you sell your house fast and you're a cash buyer and you haven't found something, what is your plan? So that's really important.
And then on the other hand, if you buy first, it's great because you can take your time, you can look around in the market, you can find your ideal house without rushing. And then once your offer's been accepted, you can list your property and sell it. The downside to that is if you're subject to sale, the homeowner that you're trying to buy the property of is going to have less peace of mind and they might prefer a cash offer because they would have to wait for you to sell. Also, if you sell but you don't get as much as you initially think, you might need to renegotiate your purchase price with the house that you're trying to buy, and they'll be aware of that because their lawyer will tell them. So it does make your offer more attractive if you can be cash, but we also don't want people to be homeless.
SPEAKER_00
No, we never want anyone to be little hermits running around.
all up. Also, if you are trying to make an offer on a house and you haven't met with an agent, you haven't done your home maintenance, you haven't had photos done on your property, you're not prepared, you're at a disadvantage over somebody who needs to sell but has had their photos done, they've got their internet write up ready to go, their house has been, you know, prepared and staged, and all they need to do is say to their agent, Cool, my offer's been accepted. Can you make my property live?
SPEAKER_00
Mmm, I love that. And I think we had an episode about it before, didn't we? When you get super mega prepared before.
SPEAKER_01
Super mega, mega prepared. I love it. See what I did there? I love it.
SPEAKER_00
And I think it's super important for people to know this because often people are scared that oh, if I get the agent around, if I get all of those things ready, then I have then I have to commit and I have to do this. But you don't, right?
SPEAKER_01
Like no, we love looking at houses. That's literally what we do all day. We look at houses. I enjoy coming to people's house. If there's a cup of tea in it for me, that's great, but I'll still look at their house.
it. And I see this a lot because in the market that it is right now, when the prices are great to buy, but not that great to sell, it could be advantageous to just see if you can secure something, buy it, get an approval for that bridging loan. And we can dive into that in the next episode. What's the difference between the closed bridge and open bridge? And in this situation, it's called an open bridge, where you the you the bank allows you to buy the second property without selling yours first. Then you move into the house, so you've got only one moving cost instead of two. And I mean, let's face it, who wants to live as the family for a long time? Nobody.
SPEAKER_01
Nobody.
SPEAKER_00
And you know, you found your dream home, you want to buy that one, you secure that first, you move in, and then you can clean up the old house, stage it the way you want to stage it, and sell it once the market picks up.
SPEAKER_01
That would be brilliant.
SPEAKER_00
Yeah. I mean, if the financial situation allows, I have plenty of clients that actually went down the ABB route as well. If the house is ABB able, then they move out without selling it first, waiting for the market to recover, A B, because Airbnb doesn't usually do as much damage as if you were renting. And I mean, if you put proper rent tenants in, then you don't want to kick them out either. Yeah. If you're still planning to sell it down six months the line. So um, so yeah, that's another option as well.
SPEAKER_01
And it's it's interesting seeing that how that plays out financially as well, because if you are gonna do a bridge, you know, you need to look at the market. It are things selling quickly, how long are you going to be paying for both the property's rates and any other costs? And how quickly is your house likely to sell? So that you don't put yourself under financial pressure either. So yeah, it's a catch twenty two, isn't it? Do you move first or do you sell first?
