How to get best returns on 55K over a 12-18 month period?

[Rich196]

With the view of buying a property in the next 12-18month period we have 55k I would like to get the most out of in the time frame.

My initial thoughts are to open two Lifetime ISA's one in my name and one in my partners. These would allows us to deposit 4k, and get 25% put in by the state plus interest 0.75%. One in each of our names would mean a 2k return on a 8k investment in a 12month period. Assuming both of us can use this state bonus towards one property, can anyone confirm?

That leaves 47k to do something with?
1 Year fixed rate accounts seem to give a max of 1.85% from what I can see, so a return of around £870.
Easy access accounts give between 1.25 and 1.3% max, this is return of around £600.

For the sake of £270 I would be included to leave it in something easy access so I can move on a property if something nice comes up.

So at the moment I would be looking at a 2.6k return on 55k in 12months. So 4.73%.

Anyone got any feedback on this plan or some better ideas?

[Rich196]

Thanks for everyone's feedback, its really appreciated.

I can confirm we are both first time buyers and meet the criteria to use a LISA in that way.

NickCQ said:

One thing you might consider with the non-ISA portion is buying a security that is correlated to the real estate market, something like a property ETF. Then you will be insulated against swings in the property market between now and when you want to buy.

I did that when I was saving up to buy in London and it was the right choice, given that things were quickly becoming unaffordable.

Nick, this is interesting and I know nothing about it. Have you got any more information or incite into the do's and don'ts?