Brecon Property Advocates

Buying Before Selling: A Strategy Gaining Momentum

More Queensland homeowners are choosing to secure their next property before committing to a sale.

When managed carefully, this approach can reduce uncertainty and give clarity — particularly in lifestyle markets or where suitable homes are scarce. However, it does require a realistic understanding of borrowing capacity under current lending criteria and interest rates.

For downsizers, families and owner-occupiers reassessing their next stage, buying first can work well when supported by careful planning and professional advice however,….

This is often the smart move that many get wrong

You Must Clarify the Real Decision

This is not simply a question of sequencing. You are effectively determining:

• The level of financial exposure you are prepared to accept

• The amount of stress you can reasonably manage

• Whether you prioritise certainty over flexibility

• How vulnerable you are to market fluctuations

Scenario One: Purchasing Before Selling

• Many owners favour this path because it provides emotional reassurance.

• You secure your next residence first. The uncertainty of “where will we live?” disappears. That sense of security can feel empowering.

• From a financial perspective, however, this approach carries greater risk.

Benefits

• Freedom from urgency. Without having already sold, you can wait for a property that genuinely suits you rather than settling under pressure.

• Stronger purchase negotiations. You are not constrained by an imminent settlement deadline.

• Reduced anxiety for long-term homeowners. Particularly for those leaving a family home after decades, knowing the next property is secured can ease transition stress.

Drawbacks

• Bridging costs can escalate. Bridging finance typically attracts higher interest rates. If your sale is delayed, expenses can increase quickly.

• Exposure to market shifts. Your purchase price is fixed once exchanged, but your sale price is not. A softening market between transactions can erode your position.

• Weakened selling leverage. Once committed to a purchase, buyers of your current home recognise your urgency.

• Dual holding costs. Rates, insurance, utilities, and potentially two loan repayments accumulate simultaneously.

This strategy is most suitable when:

• You hold substantial equity and liquidity buffers

• The market is rising or undersupplied

• Your property is in strong demand and likely to sell efficiently

• You have obtained conservative, evidence-based price guidance rather than aspirational estimates

Scenario Two: Selling Before Purchasing

This is often the more conservative and strategically disciplined route. It removes ambiguity but requires composure.

Benefits

• Absolute budget clarity. You know precisely what you have to spend. No reliance on projections.

• Enhanced buying power. With funds secured, you are not subject to sale conditions. Sellers view you as credible and decisive.

• Lower financial pressure. You avoid servicing two properties at once.

• Agility in negotiations. When the right property appears, you can act immediately.

Drawbacks

• Temporary housing may be necessary. Short-term rental or interim arrangements could be required.

• Potential urgency to repurchase. Without a structured plan, you may feel compelled to act quickly.

• Emotional discomfort. Letting go of your current home before securing the next can feel unsettling.

  This strategy is most suitable when:

• Market conditions are volatile or softening,

• You require sale proceeds to fund the next acquisition,

• You prefer financial certainty to emotional reassurance,

• Negotiating strength on purchase is a priority

The Influence of Market Conditions

Market direction significantly alters risk:

• In a rising market: Purchasing first can be viable if values continue climbing while you search.

• In a flat or declining market: Selling first protects you by securing your outcome before committing elsewhere.

At present, there are areas showing resilience, yet pricing remains sensitive to interest rate movements. That makes disciplined valuation and preparation essential.

The Most Common Error

• Overconfidence in inflated price expectations.

• Owners sometimes commit to a purchase based on optimistic appraisals rather than defensible evidence. When the sale falls short of projections, bridging costs extend, negotiating power diminishes, and pressure mounts.

• Accurate pricing strategy is not optional — it is foundational.

An Often Overlooked Middle Ground

Risk can sometimes be moderated through careful structuring, rather than choosing one extreme.

Examples include:

• Extended settlement periods

• Flexible contract terms

• Early access arrangements

• Post-settlement leasebacks

• Strategically structured conditional offers

With deliberate planning, these mechanisms can create valuable breathing room

A Better Question to Ask

Instead of asking, “Which should we do first?” consider:

• What level of financial exposure is acceptable?

• How robust is demand for our property?

• How reliable is our pricing evidence?

• What does our cash flow realistically support?

• Where are we in the market cycle?

For many downsizers, selling first delivers clarity and leverage. In other circumstances — when structured conservatively — purchasing first is entirely appropriate.

The decision should be grounded in strategy, not sentiment

Closing Perspective

• A move is not merely a transaction. It is a sequence of financial decisions with long-term consequences.

• Handled carefully, the process can safeguard wealth. Managed poorly, it can quietly diminish it.

• If you are weighing your options this year, the outcome will depend less on timing luck and more on disciplined preparation.

  Is 2026 the Right Time to Make a Move?

There’s no single answer that applies to everyone.

Market conditions matter, but personal timing, financial confidence and clarity around your goals tend to matter more than perfectly predicting interest rates or price cycles.

For some SEQ homeowners, 2026 will offer opportunity.
For others, patience will be the better strategy.

What consistently leads to better outcomes is avoiding rushed decisions driven by noise — and instead making calm, informed choices based on your own circumstances.

The start of the year is an ideal time to explore options without pressure, gather information, and understand how buying and selling might work together.

Seeking advice early — before timelines become tight — often reduces stress and leads to more confident decisions when the time is right