Possibly prompted by a lack of supply, increasing numbers of home movers are renting as an interim measure prior to buying their next property.
It can be tempting to stay put until the right house comes onto the market. However, many people who have done this, and who find the right onward property, then find themselves in a position of not having sold their own property fast enough to secure the next place. Chicken and egg?
It’s not for everyone, but the opportunity to rent between properties fills this gap, and can make financial sense as well as providing flexibility for those who are prepared to consider a short-term extra move. Here are the two problem scenarios interim renting solves:
1. You put your own property on the market, and look around for a new one. Inevitably your dream home just happens to be on the market and you’d like to buy it. But without first having sold your own you are not in a position to do so. But you make an offer anyway, in the hope that you’ll find a buyer soon. However as you are not in a strong position, the seller may not accept your offer, unless you offer the asking price, or even more. You then find yourself having to accept a low offer on your own sale in order to sell fast enough to secure your onward purchase. You end up buying high and selling low, thereby losing out financially at both ends.
2. You put your own property on the market, and quickly find a buyer, but have not yet found a suitable onward purchase. As you can’t effectively deliver until you have found somewhere, you potentially stand to lose your buyer, who can’t wait. Your property then remains on the market and risks “going stale” thereby losing value as time goes on.
Interim renting solves both these problems. By finding a buyer first, you can hold out for a higher price as there is no pressure on you to purchase, and no upward chain. Then from a position of strength in a rented property you’ll be one of the hottest buyers on the market and more likely to be able to secure the pick of the new properties to market, possibly at a lower price too, as you’ll be regarded as a strong buyer with no downward chain. Your “premium buyer” status may also mean that estate agents will offer you properties that are not on the open market, thereby expanding your choice of new home.
Interim renting is a win-win solution – so why not call Ruxton Lettings on 0121 704 0100 to find out how it can work for you too.
