With strong demand and limited housing supply across many Perth suburbs, homes are often selling extremely quickly, and often attracting multiple offers, sometimes even sight unseen. This creates a difficult decision for homeowners wanting to upgrade their home.

Should you sell first and then start looking for your next home?
Or should you buy first and worry about selling later?

Both approaches have advantages and risks.

Let us walk you through the most common strategies homeowners are using now to upgrade their home in the Perth property market.

Why Timing Matters in the Perth Property Market

Perth has been one of the strongest property markets in Australia in recent years.

Several factors are driving demand:

• Continued population growth
• Limited housing supply
• Relatively affordable property compared to the eastern states
• Strong rental market conditions

Because of this, buyers often find themselves competing for quality homes.

If you already own a property and need to sell before buying your next home, your offer may sometimes be less attractive if it is subject to the sale of your current property as it possibly may come with a prolonged timeline or perceived risk for the sellers. Even though it is highly likely that your home would sell relatively quickly in prevailing market conditions, if there are other offers on the table for the same money, terms and conditions do play a factor for sellers wanting to mitigate any delays that could derail their own timelines and finances.

This is why many homeowners explore different options and strategies available to them when upgrading.

Strategy 1: Sell Your Current Property First

Selling before buying is the most conservative approach.

Once your property sells, you know exactly how much equity you have available and what your budget is for the next purchase.

This approach has several advantages:

• No risk of holding two properties
• Clear financial position before buying
• Simpler loan structure

However, the main downside is timing.

Once your property sells, you may feel pressure to find a new home quickly, especially if your settlement date is approaching.

Some homeowners in this situation end up renting temporarily while they search for their next property and while this seems like a viable option, renting at the moment in Perth is also very expensive and a suitable rental property in your desired area may be hard to come by – especially if you’re only wanting something with a short term lease. Another alternative could be to stay with family, but again it comes with its downsides and you will have to consider the costs, logistics and the energy involved in moving twice.

Strategy 2: Buy First, Then Sell

Another option is purchasing your next home before selling your current one.

This approach removes the pressure of needing to find a new property within a specific timeframe.

Advantages of buying first include:

• Securing the right property when it becomes available
• Avoiding temporary rental accommodation
• Moving directly from one home to the next

The main challenge with this strategy is that it often requires bridging finance to temporarily fund both properties.

Strategy 3: Use Bridging Finance as a Safety Net

A strategy we are increasingly seeing in the Perth market is using bridging finance approval as a contingency plan.

In this scenario:

1️⃣ A homeowner finds the property they want to buy.

2️⃣ They submit an offer subject to finance rather than subject to sale.

3️⃣ Bridging finance is arranged in the background as a precaution.

4️⃣ Their existing home sells quickly in the current market.

In many cases, the bridging loan is only required for a short period — sometimes just a few weeks — or it may not be needed at all if the sale settles before the new purchase completes.

This approach allows buyers to move forward confidently while still having a financial backup plan.

Upgrading in a Competitive Market

Consider a homeowner in Perth who wants to move from a three-bedroom home to a larger family property.

Their current home is worth approximately $1,000,000 with a remaining loan of $500,000.

They find a new home they love listed for $1.5 million.

Instead of selling first and risking missing the opportunity, they:

• secure bridging finance approval
• submit their offer subject to finance
• prepare their existing home for sale

Because demand in their suburb is strong, their home sells within three weeks.

The bridging finance only covers a short period before the sale proceeds reduce the loan.

When Buying Before Selling Can Work Well

Buying before selling can be beneficial when:

• You have strong equity in your existing home
• You’re buying in a competitive market
• You want to avoid renting between properties
• You find the right property and don’t want to miss the opportunity

However, it’s important that the numbers are carefully modelled before proceeding.

What Lenders Consider When Assessing Bridging Finance

When assessing bridging finance, lenders typically consider:

• Your available equity
• Your ability to service the temporary peak debt
• The expected sale price of your existing property
• Current property market conditions

Because bridging loans temporarily increase your total debt, it’s important to structure them carefully.

So what should you do?

In fast-moving property markets like Perth, timing can make upgrading homes more complex.

Selling first offers certainty but can create pressure to buy quickly or find alternative, temporary housing.

Buying first can provide flexibility but requires careful financial planning.

For many homeowners, the most effective strategy is simply having the right options available before making an offer.

That might include pre-approval, equity analysis, or bridging finance arranged as a contingency.

Thinking About Upgrading Your Home?

If you’re considering upgrading your home and want to understand the best strategy for buying and selling, it’s worth running through the numbers first.

At Base Home Loans we help clients:

• assess their available equity
• model buy-before-sell scenarios
• structure bridging finance where appropriate
• secure lending approval before making an offer

Because when the right property appears, being prepared can make all the difference.

Related articles:

Mortgage Broker Perth: How To Choose The Right Broker And Structure Your Home Loan

Bridging Finance In Australia: How It Works And When It Can Help You Upgrade Your Home

Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions. The examples used here are illustrative in nature and do not reflect any actual people or clients.