Where to invest short term?

meredith123

I have a fair pot of cash from my house sale a couple of years ago and am now renting.

It feels the wrong time to buy at the moment as things are on their way down so I'm waiting it out a bit. In the meantime my savings are earning me nothing but I want to be able to access my money in case something comes up property wise.

Am also worried should we enter 'hyper inflation' due to the money being printed that as i don't own any assets my money could effectively lose its worth.

I'm reluctant to go down the gold route as feel i've probably missed that boat to make it worth while....

What would you do??

luvpump

Very Little choice in the current Market, "Investing" is usually Medium to Long Term, your best option to be frank is an instant access account or 1 yr bond ... check out Moneysupermarket.com which is a pretty decent site, that really is about it ..

meredith123

luvpump wrote: »

Very Little choice in the current Market, "Investing" is usually Medium to Long Term, your best option to be frank is an instant access account or 1 yr bond ... check out Moneysupermarket.com which is a pretty decent site, that really is about it ..

yes fair point, wrong choice of word :-)

clairbear_3

Have u not considered re-entering property market,picking up a reduced/distressed property,therefore benefitting from low mortgage deals/no rent/long term gains in property value
I think 'investing'could leave your funds tied up long term

cocktail

your money is losing value sitting in the bank all the time. interest rates are pathetic. i agree house prices are going down but so is the value of the pound. inflation predicted in the not so distant future and probable further devaluation of the pound could affect the ability of your money to buy what it can at the moment.
remember with devaluation and inflation the value of the debts(mortgage) also goes down.
A personal opinion.

sh856531

It feels the wrong time to buy at the moment as things are on their way down so I'm waiting it out a bit.

To be honest, even if house prices do go down further it really doesn't matter if you aren't planning to move again in the short term. If you move into your house and don't plan on moving for a good few years, house prices will almost certainly have picked up again by the time you want to move - in which case the potential drop this year isn't necessarily as important as you might think.

Even with the risk of prices dropping by another X percent - you'd still be better off than renting. At the moment you are effectively settiing fire to hundreds of pounds worth of cash every month...

Just like me...

:-)

Castleman

sh856531 wrote: »

Even with the risk of prices dropping by another X percent - you'd still be better off than renting. At the moment you are effectively settiing fire to hundreds of pounds worth of cash every month...

Not really - legal fees, stamp duty, surveys, etc etc...all money down the drain...

sabretoothtigger

Not in the long term, not many things beat land and housing for a return on value and reduction in costs at the same time

If you are really picky it could easily take a year to find and buy a house anyway and by then it might be the right timing, hard to tell till afterwards

There was a recent thread on index linked year long bonds at NS&I which means if things go terrible you'd at worst maintain your present actual real money value according to rpi

Could be a good bet with this money you cannot afford to lose any of.
Otherwise stocks with foreign income might do well with inflation I think but a year isnt long enough for stocks really

Richard_Cocks

sh856531 wrote: »

Even with the risk of prices dropping by another X percent - you'd still be better off than renting. At the moment you are effectively settiing fire to hundreds of pounds worth of cash every month...

Compared to setting fire to hundreds of pounds worth of cash in interest?