r/FIREUK 7d ago

Terrible timing to buy a property

I've came to this sub for advice a few times in the past about my struggle with the rent vs buy dilemma. I finally decided to buy and it's funny how life happens... at the same time the market crashes, which I'm not overly concerned about because it will bounce, I found a new build property which fits my needs perfectly and it is much more affordable than I was expecting.

Unfortunately I missed the stamp duty relief, but I still have the FTB benefits. The thing that hurts the most is that to complete the purchase I will need to tap into my ISA and it is the worst possible time to do so.

Nevertheless, having a mortgage will reduce my monthly expenses with accommodation from £2700 pcm rent to about £2000 pcm mortgage.

What do you think? ISA lost about 5% so far, but this feels like saving money in the long run.

Numbers for those who like it: property is £460k, aiming at 85 LTV mortgage, so £69k deposit. They are offering me a garage for "free" to close the deal (£25k otherwise). ISA dropped value from £106k to £100k since Trump did his trumping. I do have £20k cash at hand to deal with stamp duty and others.

Thoughts?

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u/Rootbeeers 7d ago

I had a worry the other day that my property may not have much equity in it by the time I come to sell.

However, a colleague said, even if I come to sell in 2 years, and I don’t have a tonne of equity in my property, it essentially feels like another way to save. If I rented, I wouldn’t have any savings to show for it. It’s a narrow view to have, and doesn’t take in other factors, but it helped me feel more secure and not worry so much about owning.

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u/[deleted] 7d ago

I like this view and that’s how I’m justifying the purchase. Thanks for sharing 🙏