Galaxy brain idea, or needs more thought?
My husband and I have the goal of buying a house one day in the UK inshallah but want to avoid riba. I have recently gotten into personal finance and started a Lifetime ISA and put some money into an Islamic global ETF.
I thought to myself since there are people out there saving and investing a big portion of their income to retire one day (ie FIRE), wouldn’t it be a good idea to invest the amount of money it would take to buy a house in cash?
I put some figures into a HSBC investment calculator, and if we invest £1,000 a month for 15 years in an intermediate market we should have around £270,000 or the amount it would cost for a 3 bed in a small town.
We can’t predict house prices or inflation, but this seems like a way to get a fully paid off home without paying into a mortgage and associated riba for 30 years? Of course we would have to keep paying rent while we save which is an important consideration.
I’d love to hear others’ ideas, if this is a viable option anyone is already doing or is planning to do inshallah?