Buy now, sell later? How the dip in real estate has made it trickier to judge the market

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Most GTA move-up buyers are probably safe purchasing a new home before they sell the old one, but make sure you don’t overextend, say mortgage and real estate experts.

Denise Laframboise is a mortgage broker and a serial homebuyer. She understands why someone would buy a place before selling their existing home.

Those are owners whose homes won’t necessarily be the first on their block to sell. If you’ve got a home that, because of design, layout or its condition, isn’t going to get as many offers as neighbouring properties, you might want to reconsider, said Pasalis. “I still think it would be a smarter process to buy first because if you sell, you may not actually be able to buy something,” he said.

In the current climate, Gurza, 30, says he wouldn’t hesitate to buy before they sell, although if the market drops they might be more conservative in what they buy. Many people she meets don’t know that bridge financing depends on the sales being firm on both ends — the house the seller is leaving and the home they’re buying. So you can’t use bridge financing to move into your new place, stage your old home and sell it later, she said.

 

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Real Estate agents busy with their 'pocket listings' and buying houses themselves or getting others to buy and cutting them in.

Want to fix the housing market? Rent caps plus punitive taxation on rental, income and investment properties along with punitive taxation on empty homes. Watch the problem sort itself out.

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