Perhaps you’ve had an offer that’s too good to refuse, or the house you’re buying has fallen through, but you don’t want to lose your buyer. Moving into rented accommodation after selling your home may not be the conventional way of house hunting, but it does come with advantages.
And in a competitive market, it can actually give you the edge.
Here we look at the pros and cons of selling your house and renting before you buy, as well as some tips on how to make the process work for you.
Being chain-free offers you advantages both as a seller and a buyer. As a seller, you’re not looking for a quick sale and therefore won’t feel pressured to settle for a low offer. And as a house hunter, with your sale funds in the bank and no chain attached, you make an attractive buyer. One who might be considered more favourably than someone in a long property chain.
Not only that, but renting before you buy gives you time to ride out the ebbs and flows of property prices. If it’s hinted that house prices may fall, you have the luxury of waiting until they do.
However, it’s not all plain sailing. You could find that house prices rise, or you can’t find a suitable property to buy. A lengthy period of renting could eat into your house fund and shrink your pool of affordable properties.
Before you take the leap, make sure there are suitable rental properties for you to move into while you look for a new home.
Take a look at average rental prices and work out your budget. You don’t want to put a dent in your sale funds, so be satisfied that the rent is within your limits.
It seems obvious, but make sure that the exit terms of your rental contract are going to work for your situation. Your tenancy agreement will detail how much notice you need to give, but if it’s a fixed-term tenancy, you may be liable to pay rent for the entire period of your fixed term, unless there’s a break clause in your agreement.
After a fixed term, a monthly rolling contract gives you the flexibility of giving only a month’s notice to end your tenancy. However, it also gives your landlord the same opportunity.
As your rental will be a short-term situation, you won’t need as much space as you’re used to. Renting somewhere smaller will open up the number of available rentals and will also help you keep the costs down.
If you’re downsizing, you’ll obviously have plenty of furniture that you won’t be able to fit into your rented accommodation. Self storage for house moves provides the ideal solution here.
At McCarthy’s we aim make the entire process easy for you. We pack your container, do a detailed inventory and then relocate it to our secure facility, where your possessions are protected by 24-hour CCTV monitoring.
Get your finances in order
Knowing how much you have in your budget and getting your mortgage pre-approved will put you in an even stronger position as a buyer.
Whether you’re porting your mortgage or shopping around for a better deal, now is the time to do it, before you want to make an offer on a new home.
If you need any more house move storage advice, please don’t hesitate to get in touch. With over 50 years in the business, we’re ideally placed to help your move run smoothly.
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