First Time Home Buyer Share ISA

aj1977

Hello All,
I have about 10K in cash IAS that i have saved towards my house deposit(first time buyer).
With my cash ISA interest rates being so low, Am I better off transferring the cash ISA into a Self Select Shares ISA?.
I already hold 1K in Fidelity Money Builder growth fund and 1K in Newton Higher Income fund and they have
been doing reasonably well for the past 3 months
I would need to take off the money in 4-6 months when the house purchase goes through.I know investing in shares/funds
for a short term is high risk but what would others suggest?.
Shall I go ahead and top up my existing funds by transferring in the Cash ISA? Or would a split of 5k in funds(such as Fidelity Money builder,Newton Higher Income) and 5K in shares (such as RBS,Lloylds inside the self select ISA) be better?

Cheers
AJ

Lokolo

I wouldn't see the point in it.

What happens if you lose 5-10% of your money by the time it comes to purchasing. You'd end up having to wait to save that 5-10% up again.

Consumerist

aj1977 wrote: »

. . . I know investing in shares/funds for a short term is high risk but what would others suggest?.

You are quite right. So don't do it.

In the current uncertain times, investing in the stock market really should be for the longer term. Any up-front management fees would eat into your gains from the get go.

I think you will be better off to stay in cash (e.g. ISA or instant access account) for the relatively short term you envisage.
.

dunstonh

I would need to take off the money in 4-6 months when the house purchase goes through.I know investing in shares/funds
for a short term is high risk but what would others suggest?.

Ok, lets say in 2 months time we have a market correction of say 30%. You have just wiped out a chunk of your deposit which could prevent you buying the house. Is that really the sort of risk you want to take?