She Strengthens

Navigating Big Financial Decisions During Uncertain Times

The COVID-19 pandemic has forced many of us to put our financial plans on hold. But with the introduction of new economic incentives, my partner and I decided to take the leap and buy a new house. It wasn’t an easy decision, but we were tempted by the temporary standard-rate Stamp Duty ‘holiday’ for purchases below £500,000 in England.

The Initial Rush

We were excited to start our search for a new home, and quickly fell in love with a beautiful, spacious apartment close to our current location. Our offer was accepted, and we scrambled to get the paperwork sorted for our own sale. But things didn’t go as smoothly as we had hoped.

The Reality Check

Viewings were scarce due to the shrunk mortgage market, and everyone else in similar-sized apartments in the area had the same idea to sell. The listings flooded the market, making pricing super competitive and selling prices lower than expected. After a month, our offer on the new place was rejected in favor of a buyer who had already sold their home. We were faced with a potential loss on our current place, and the stress of sorting complicated paperwork, dealing with fluctuating mortgage rates, and working from home in a tiny shared space took its toll.

Lessons Learned

After taking our apartment off the market, I reflected on what we could have done differently. Here are my key takeaways for making big financial decisions:

Research, Research, Research

Don’t rush into anything without doing your due diligence. Researching complicated things like lease agreements, loan contracts, and estate agent contracts can feel overwhelming, but it’s crucial. Take the time to read reviews, ask for advice from friends and colleagues, and don’t be afraid to reach out to experts.

Be Prepared for Industry Limitations

Some sectors, like the law, may not be as technologically advanced as others. Be prepared for longer timelines, and invest in a good printer, stamps, and envelopes. Don’t expect expedited mail on Sundays, and be prepared to travel if necessary.

Make Lemonade

When life gives you lemons, make lemonade. Instead of getting discouraged by setbacks, reframe them as opportunities. Use the time to rework your current living space, save money, build an emergency fund, or pay off debt. Look for great interest deals or investment opportunities that may have arisen due to the pandemic.

Don’t Underestimate the Mental Strain

Making a big financial move can be stressful, especially during uncertain times. Don’t underestimate the mental toll it can take. Lean on your support networks, take breaks from the process, and prioritize self-care. It’s okay to feel down about how slowly something is moving or if plans change.

In the end, making a big money move during a pandemic has been a challenging experience, but it has also taught me valuable lessons that I will carry with me into the future.