Should you buy or sell your home first?

Published on November 19th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.

The idea of closing one chapter and opening another when upgrading your home can be an exciting prospect until you are posed with the question of buying first or selling first? Already feeling you stuck in a catch 22 situation? This guide can help you decide which one will work best for you and your finances


You may already have an eye on a hot property that could be snatched up any minute. It can also be convenient for purchasing a house while you wait for your current house to sell. To know if buying a house is worth it means comparing the pros and cons of this options.


  • You have time to decide. Since you already have your current property to bank on, it will give you ample time to decide what house you want and in which area. It can also give you time to compare your finance options.
  • Cut down on moving expenses. Buying a house first can give you the security of knowing that you already have a house to go to, instead of spending money on hotels or apartments while you wait to find property. According to a study by ING, Aussies forked out $863 million on moving house, with the average cost at $1, 618.


  • The pressure of selling your house for less. Once you have settled into your new place you can get pressured into selling your current property for less to quickly get it off your hands. Corelogic noted that 89% of properties in Australia sold at a loss of 10%.
  • Market conditions can prolong the selling of your house. There is the fact that being able to sell your house to finance your new purchase can take some time based on the current market conditions.
  • You could end up paying for two homesGetting a bridging loan can be a temporary solution for homeowners that do not have enough equity in their homes but are looking to sell. However, it could also mean that you will be paying for your current home and your new home at the same time.


It’s a fresh start and also an opportunity to have a do-over when it comes to purchasing property that works for your finances.


  • Have a realistic budget. You will have the leverage of knowing how much you have in terms of your home buying budget and avoid overextending yourself.
  • You can get a one up on other buyers. When you have a set budget and the finances ready it can give you an advantage of placing an offer on a suitable house without wasting any time. A seller is more likely to take someone's offer if they already have their finances sorted.


  • The property market could change. Waiting for your house to sell will open a gap where the prices in the property market can change, meaning that by the time you are able to sell your house property prices could have increased considerably.
  • You could be living out of your suitcase. Not being able to find a property on time to purchase can result in you having to stay at a paid accommodation. There will also be the cost of transport, storage, and unexpected food costs that can arise when moving around.

Before you sell or purchase the property it is vital that you assess the market conditions. Having an estate agent by your side can help reduce the stress of finding your new property, and it can also give you ample time to organise your finances. However, always remember to compare and carefully consider your options.

Did you find this page helpful?

Thanks for your feedback!

This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for home loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

In this article

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on pinterest

Looking for a home loan?

Compare Australia’s reputed home loan lenders with us and save.

* Terms and conditions and lending criteria apply.

Smart money saving tips

Subscribe to our newsletter.

By subscribing you agree to our privacy policy

Related articles

Easily compare home loan options today

We compare home loan options for you so you can be assured you’re seeing the most competitive interest rates available in Australia.

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy broker and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.