Upsizing to a larger home can be an exciting milestone, but it often comes with financial challenges, especially when synchronising the sale of your current property with the purchase of a new one. Short term property loans offer a flexible and efficient solution for property upsizers, providing immediate access to funds and facilitating smooth transitions. In this blog, we’ll explore the benefits and applications of short term property loans, specifically focusing on how they can support property upsizers.
Short term property loans are financing options with shorter repayment periods than traditional long-term mortgages, typically ranging from 6 to 36 months. These loans are designed to meet immediate funding needs for purchasing, renovating, or bridging financial gaps between property transactions.
For property upsizers, short term property loans offer several advantages that can make the transition to a larger home smoother and more manageable.
Short term property loans provide immediate access to the necessary funds to purchase a new property. This is crucial for upsizers who need to act quickly to secure a suitable home without waiting for the sale of their current property.
The flexibility of short term property loans allows upsizers to manage their cash flow effectively, finance necessary renovations, and cover holding costs until their existing property is sold. This ensures that upsizers can focus on their move without financial strain.
Managing multiple property transactions can be stressful. Short term property loans alleviate this stress by providing the funds needed to bridge financial gaps, ensuring smooth transitions and timely project completion.
By leveraging short term property loans, upsizers can take advantage of market conditions, complete necessary renovations quickly, and sell their existing property at optimal times, maximising their returns on investment.
At Funding, we understand the unique challenges faced by property upsizers. Our short term property loan solutions are designed to provide the flexibility and support needed to navigate these transitions efficiently.
Understanding how short term property loans work can help property upsizers effectively utilise this tool to streamline their transitions and enhance their financial position.
The first step is to apply for a short term property loan through Funding. Property upsizers need to provide details about their current property, the new property they intend to purchase, and their financial situation.
Once the application is submitted, Funding will review it and provide an approval decision, typically within 48 hours. We assess the client’s eligibility based on factors such as credit history, property value, and purchase price of the new property.
Upon approval, the funds are disbursed quickly, allowing the upsizer to proceed with the purchase and any necessary renovations. The loan amount usually covers the purchase price, renovation costs, and any associated expenses.
The upsizer can now focus on moving into their new home and preparing their existing property for sale. During this period, they can make interest-only payments on the loan, reducing their financial burden. Once the existing property is sold, the proceeds are used to repay the short term property loan.
Consider the example of Jane and Tom, a couple in Sydney looking to upsize from their small apartment to a spacious family home. They found the perfect new home but needed funds to secure it quickly and complete some necessary renovations.
Jane and Tom applied for a short term property loan from Funding. With the loan approval and disbursement process completed within a week, they secured their new home and began renovations immediately. The loan provided them with the funds needed to cover the purchase price and renovation costs, allowing them to move into their new home without delay.
After settling into their new home, Jane and Tom took their time to prepare their existing property for sale. The proceeds from the sale were used to repay the short term property loan, and they enjoyed a smooth and stress-free transition to their new home.
Short term property loans are an essential tool for property upsizers looking to manage their transitions efficiently and effectively. By providing quick access to funds and financial flexibility, these loans enable upsizers to secure new properties, finance renovations, and navigate market conditions with confidence. If you’re a property upsizer looking to enhance your transition, leveraging short term property loans from Funding can help you achieve your goals.
To learn more about how short term property loans can support your upsizing journey, visit our Funding page and explore our comprehensive loan solutions.
For additional resources and information on short term property loans and upsizing, explore these helpful links:
By utilising the right financial tools and strategies, property upsizers can navigate the complexities of real estate transactions with confidence and ease, ensuring successful and profitable outcomes.
DISCLAIMER: The information provided on this page is for general informational and educational purposes only and is never intended as financial advice. While we strive to ensure that the content is accurate and up-to-date, it may not reflect the most current legal or financial developments. Always consult with a qualified financial advisor or professional before making any financial decisions. Use the information at your own risk.
