Short term saving for next 12-24 month
Discussion
Hi,
I am intending to purchase my first house in the next 12 to 24 months, currently subject to Government Corona and Brexit impact.
I already have a first time buyer LISA which I throw the maximum £4,000 in every year where I then get an additional £1,000. Outgoings are currently quite low and am saving roughly £1,800 - £2,000 a month (sometimes more if it's been a particularly cheap month) which are going into my regular current account.
As I intend to be able to draw on these funds in the near future, is the current account the best place or is there somewhere better (such as a physical asset)?
I don't want to be missing a trick if there is one which I hope you can appreciate.
Thanks,
I am intending to purchase my first house in the next 12 to 24 months, currently subject to Government Corona and Brexit impact.
I already have a first time buyer LISA which I throw the maximum £4,000 in every year where I then get an additional £1,000. Outgoings are currently quite low and am saving roughly £1,800 - £2,000 a month (sometimes more if it's been a particularly cheap month) which are going into my regular current account.
As I intend to be able to draw on these funds in the near future, is the current account the best place or is there somewhere better (such as a physical asset)?
I don't want to be missing a trick if there is one which I hope you can appreciate.
Thanks,
IMO
Keep in the best interest rate savings account you can get. If you need access to cash in the next 12/24 months the stock market isn't for you. It's too variable at the moment and yes you could get "lucky" but you need to see out a 5 year investment plan tieing up cash.
I have the same dilemma. (aiming to buy in the next 12 months or so). Although my portfolio is probably +/- 200k I am still keeping over 75% cash.
Keep in the best interest rate savings account you can get. If you need access to cash in the next 12/24 months the stock market isn't for you. It's too variable at the moment and yes you could get "lucky" but you need to see out a 5 year investment plan tieing up cash.
I have the same dilemma. (aiming to buy in the next 12 months or so). Although my portfolio is probably +/- 200k I am still keeping over 75% cash.
Yeah cash savings rates are s
t at the moment sadly.
Just a thought but maybe use cash for 90% and invest 10% but with the full acknowledgement that over two years there's a chance you may lose money on that 10%.
Plus cash typically loses due to inflation.
Risk/reward basically and you don't get one without the other right now.
t at the moment sadly.Just a thought but maybe use cash for 90% and invest 10% but with the full acknowledgement that over two years there's a chance you may lose money on that 10%.
Plus cash typically loses due to inflation.
Risk/reward basically and you don't get one without the other right now.
Hi,
Thanks for the replies. Some thought for me to consider.
Thanks,
Thanks for the replies. Some thought for me to consider.
Dg504 said:
What value of property are you looking at?
Up to £200k if need be, although I would hope to get what I want for around £150k.Dg504 said:
Will £1k a year LISA top up be pitiful in comparison to the stamp duty holiday we’re in?
I understand as a first time buyer I would not have to pay stamp duty, although at the moment the current stamp duty holiday has put me at a disadvantage in the market. I am hoping there will be a return to the previous stamp duty etc. come the time I intend to purchase. I am not sure where else I would get a low risk 25% interest outside of the LISA?Thanks,
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