Tim & Sophie are Melbourne locals – born and bred. They bought their first home in Melbourne in 2010 and had lived in it for 6 years. Tim & Sophie were blessed with two little children over their 6 years at their Essendon property. They decided to explore the opportunity to upgrade their existing home to a larger house in a better school catchment, but wanted to do it as seamlessly as possible.
Tim & Sophie wanted to sell their existing home rather than holding onto it as an investment.
With two little ones quickly growing, Tim & Sophie wanted the process to be as simple as possible.
Their immediate priority is to purchase the new property, settle in & pay the loan down over the next 4-5 years. Tim & Sophie have no current or future plans to invest in property.
Our goal was to find a solution that would ensure Tim & Sophie can move into their new home, while keeping their stress & hassle to a minimum.
While upgrading the family home, there’s usually a few ways purchases can be structured:
This was not a suitable solution – $7,000 for a temporary period certainly adds stress!
Buy & Sell on the same day – this option would mean that Tim & Sophie will line up the purchase of the new home settlement date, with the sale of their home. This invariably can be stressful managing multiple settlements & having a forced position of settling on the same day. Tim & Sophie noted that this will drastically hurt their negotiation power as they would likely require a longer settlement period & many sellers in their favourite suburb weren’t willing to do this. Given the stress levels & consequences involved, this also wasn’t an ideal solution.
Sell first, rent temporarily & buy again – here Tim & Sophie would need to move twice. First into a rental property & then into their home. While this would take the pressure of selling within a certain date, they immediately ruled this option out.
Buy first, sell after – Similar to a bridging option, Tim & Sophie had the borrowing power & equity available to purchase their new home first & then sell their existing property in their own time later. Here Tim & Sophie would have the option of turning their old home into an investment before selling, or selling right away.
This allowed Tim & Sophie to buy first, sell in their own time & do it all without paying any mortgage insurance fee. They saved themselves over $7,000 in fees by structuring their finance appropriately to meet their goals.
Tim & Sophie were very happy come auction day for their own home – their house sold for $40,000 above their $550,000 reserve. A nice little gift to help Tim & Sophie lower their ongoing mortgage!
Here’s what Tim & Sophie had to say about dealing with Confidence Finance
We’re so glad our friends referred us to Redom & Curtis. We actually went into our local broker before our family friends told us to talk to Redom. While he was friendly and supportive, he simply presented a series of loan options to us. Redom & Curtis literally saved us thousands by coming up with a clear plan, a series of actions & then delivering the right loan results to solve our upgrading issue. Turns out their innovative thinking solved our problem. At first we were a bit hesitant dealing with a Sydney firm, but it turns out talking to experts & the right people was far more rewarding than dealing with less knowledgeable people. I couldn’t recommend the team at Confidence more highly – in fact I’ve already told my family all about Redom & Curtis.