Moving Interstate: Sell First or Buy First? Strategic Considerations for Relocating to Queensland

Written by: Jennifer Smith

Relocating to Queensland? Think it Through with NQ Buyers Agent

Relocating interstate is an exciting opportunity, but it also presents complex strategic decisions. One of the most significant choices for homeowners moving from Victoria or New South Wales to Queensland is whether to sell their existing property first or purchase their new Queensland home before selling. Each approach comes with implications for timing, logistics, and market risks. Understanding these factors can help you plan a smoother transition and minimize disruption for you and your family.

Understanding the Key Challenges

Before making any decisions, it is important to recognize the main challenges involved in interstate relocation:

• Settlement Periods: Settlement timelines vary between states, which can create gaps or overlaps. In Queensland, settlements typically take around 30 days, whereas Victoria and New South Wales often operate on 60–90 day settlements. This difference can leave homeowners managing simultaneous moving, temporary accommodation, or storage needs.

• Property Market Conditions: The availability of properties varies significantly. Queensland has experienced periods of historically low stock levels, making timing particularly important. Conversely, VIC and NSW markets may fluctuate, impacting the speed at which you can sell your existing property.

• Temporary Accommodation and Logistics: If you sell first, you may require short-term housing or storage. If you buy first, you may face financial and logistical risks if your existing property takes longer to sell.

• Rental Market Tightness: Securing a rental property in Queensland can be challenging. Vacancy rates are low in many areas, making short-term rentals scarce and expensive.

Option A: Selling Your Property First

Selling your property before buying in Queensland offers certainty of funds and a clean transition in terms of finances. Knowing exactly what budget is available for your next purchase allows you to negotiate confidently in a competitive Queensland market.

Benefits

• Certainty of available funds for your next purchase

• Ability to negotiate as a cash-ready buyer in Queensland

• Simplified management with only one property at a time

Considerations

• Temporary accommodation may be required, adding cost and logistical complexity

• Storage costs for furniture and belongings may be necessary

• Moving twice increases stress and time commitments

• Low rental availability in Queensland and historically low property stock may limit options

Selling first can be advantageous in terms of reducing financial and contractual complexity, but it requires careful planning to address housing and logistics during the settlement period gap between states.

Option B: Purchasing Your Queensland Home First

Buying your new property before selling your existing home ensures that you secure your preferred home and location, avoiding the challenges of limited stock or competitive bidding. However, this strategy relies on your current property selling in a timely manner.

Benefits

• Secures your next home in a tight market

• Avoids the need for temporary housing

• Reduces the risk of missing out on preferred locations

Considerations

• Requires alignment of settlement periods: VIC/NSW 60–90 days vs Queensland 30 days

• Risk of carrying two properties simultaneously if your existing home takes longer to sell

• Potential stress associated with juggling timelines, contracts, and family logistics

Purchasing first offers the advantage of certainty regarding your future home, but it introduces logistical and timing complexities that must be managed strategically.

Strategic Workarounds

Several approaches can help mitigate risks and smooth the transition:

1. Negotiate Longer Settlements in Queensland: Extending your settlement can better align with the sale of your VIC/NSW property.

2. Rent-Back Arrangements: Selling your existing property but remaining in it temporarily can provide a buffer.

3. Simultaneous Settlements: Coordinating settlements on both properties, where possible, can reduce gaps and interim housing needs.

4. Subject-to-Sale Clauses: Purchasing your Queensland property subject to the sale of your existing home can reduce risk, though these clauses may affect negotiating strength in competitive markets.

Key Considerations for Decision-Making

When deciding which strategy to adopt, consider:

• Flexibility of buyers and sellers on both ends

• Current market speed in both your existing and target locations

• Your family’s tolerance for disruption and temporary housing

• Costs and logistics associated with moving or storing possessions

It is also important to account for historically low stock in Queensland and the tight rental market. Both factors can significantly influence the feasibility of selling first versus buying first.

Conclusion

The decision to sell first or buy first is a strategic one, shaped by timing, market conditions, and logistical considerations. There is no one-size-fits-all answer; careful planning is essential to ensure a smooth transition. By understanding settlement period differences, property availability, and temporary accommodation challenges, homeowners can make informed decisions that minimize stress and maximize the likelihood of a seamless interstate move.

This blog post provides strategic guidance and planning considerations without offering financial advice. Every relocation scenario is unique, and homeowners should consider their specific circumstances when planning an interstate move.