Buying a second home before selling your first can offer several benefits for those looking for a second home. While it may seem counterintuitive to buy a second home before selling your current one, it can be advantageous for many people. Here are some benefits of buying a second home before selling your first.
1. You Can Stay Put
Buying a second home before selling your current home can give you more control over the moving process. You’ll be able to take your time in finding the right buyer and waiting for the right offer while still having the flexibility to stay in your current home until you’re ready to make a move.
2. You Can Rent Out Your Current Home
If you want to buy another property, it’s best to do so before selling your place. That way, you can start getting rental income immediately and use it to help pay for the new home. You’ll also have the benefit of not having to rush to find a place to live if you wait until after you’ve sold your current home.
3. You Can Take Advantage of Low-Interest Rates
Now is a great time to purchase a second home, as interest rates are at a record low. Investing in a new property before selling your existing one can allow you to benefit from these low rates.
4. You Can Have More Negotiating Power
Having two homes gives you more flexibility when selling your first home. Instead of feeling pressure to accept an offer that may not be what you’re looking for, you can hold onto your first home if the offers don’t meet your expectations. This way, you can negotiate more confidently and get your desired price.
5. You Can Diversify Your Portfolio
Obtaining a second residence before selling your primary residence can be a beneficial move for increasing your overall financial strength. By having two homes, you can take advantage of the rising value of both properties and receive a consistent flow of rent payments.
6. You Have More Flexibility in Your Move
Buying a second home before selling your first allows you more control over moving. This lets you take your time and ensure each property is sold properly without feeling rushed. You don’t have to worry about finding buyers for both properties quickly and can enjoy its flexibility.
7. It Gives You Access to Different Markets
If you are looking to move to a different area, buying a new home before selling your current one could give you access to a larger range of housing markets, potentially giving you a better return on your investment. This could be due to higher demand in the new area or lower prices than what’s available close to where you live.
The Bottom Line
These are just a few benefits of buying a second home before selling your first. With the right strategy and financial planning, buying a second home first can be a great way to make a smart investment and increase your overall financial stability.
HomzXperts provides the best realtor in Toronto. We are committed to providing a personalized, professional and honest service to our clients and strive to make the process of buying and selling a home as stress-free as possible. We work with buyers and sellers alike, so if you need help buying or selling a home, HomzXperts is here to help.