How Much Will I Have Left After Selling My House? (And What Can You Buy Next?)
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Selling a home is an exciting milestone, but the financial handover can sometimes feel a bit like an illusion. You sign the final paperwork for a fantastic sale price, and for a brief moment, you mentally add that massive figure directly to your net worth.
But as anyone who has sold a property before knows, the headline sale price is rarely the exact amount that lands in your bank account on settlement day. Before you start looking for your next dream home, it helps to take a step back and calculate your net proceeds—the actual, usable cash you will walk away with once the necessary costs are settled.
Here is a straightforward look at the common costs of selling, an interactive calculator to figure out your exact net cash, and what that money means for your next purchase.
Where does the money actually go?
When your property settles, the buyer's funds go directly to your solicitor. Before transferring the remainder to you, your solicitor is legally required to pay off a specific hierarchy of costs.
Here is what typically gets deducted behind the scenes:
1. Clearing your current mortgage
The bank holds the title to your house and will not release it to the new owner until your current loan is repaid in full. Your solicitor will deduct the exact remaining balance of your mortgage on settlement day.
2. The real estate agent commission
Real estate agents do not usually wait for an invoice to be paid; their commission is deducted automatically from the deposit the buyer pays when the contract goes unconditional.
3. Legal and compliance fees
Your solicitor handles the conveyancing required to discharge your mortgage and transfer the title. Additionally, if you have any unpaid local council rates or water bills, your solicitor will deduct these automatically to provide the buyer with a clear title.
4. Property preparation and moving costs
These are the out-of-pocket expenses that chip away at your net cash. Did you pay to have the house professionally staged or touched up by painters? You also need to budget for the moving company to physically transport your belongings to your new home.
5. The bright-line property rule
If the house you are selling was ever rented out, or if it was not your main home for the entire time you owned it, you might be caught by the bright-line rule. If this applies, you could owe income tax on the capital gain. (Always consult a qualified tax professional before listing a property that has been used as a rental).
Calculate your true purchasing power
Use the interactive tool below to input your expected sale price and selling costs. The calculator will run the maths, deduct the GST automatically based on your selections, and show you exactly how much cash you will have in hand.
Once you see your net cash, enter any extra savings you plan to use and click 'Calculate Budgets' to instantly see the maximum purchase price you can afford on your next house.
Understanding your next property budget
Once you know your net proceeds, the immediate next question is usually about what you can afford to buy next. The calculator above gives you a few different maximum budgets based on the deposit percentage you use.
When looking at those numbers, keep these general lending guidelines in mind:
- A 20% deposit: This is the ideal standard banks look for regarding an owner-occupied home. Hitting this threshold opens up the most options and the most competitive interest rates on the market.
- Less than a 20% deposit: Some banks will allow you to purchase your next home with a smaller deposit, but extra costs usually apply, such as a low equity margin added to your interest rate.
- A 30% deposit or more: This is the deposit level you will currently need if you intend to use your cash to buy an existing investment property.
Let's run your actual numbers
You do not need to start shopping for your next home based on a guess. Before you sign an agency agreement to sell, it is incredibly helpful to ensure the maths actually supports your next move.
At Home Loan Factory, we can help you request your exact mortgage discharge figures, estimate potential break fees, calculate your precise net proceeds, and work on getting your next home loan pre-approved before you even put a 'for sale' sign in the ground.
Book a Free Next-Home Strategy Session with Home Loan Factory
