Protecting £120K from my house sale - buy a property fund?

fwor

ColdIron wrote: »

Not Glanmore by any chance? A friend of mine put a considerable sum into it, the results were not pretty

http://www.trustnetoffshore.com/Factsheets/Factsheet.aspx?fundCode=GGF95&univ=DC

Ouch - I've had some pretty bad investments, but none quite that bad!

It's an AXA fund, and it has recovered to show a gain of around 5% (which given I've held it for 10 years ain't great), but if I'd been forced to sell in 2009/10 I would not have been able take the 25% loss it was showing at that time - I would simply have been told that I could not make a withdrawal.

mike88

Freecall wrote: »

SDLT and other costs (insurance etc) make very short term investment in property impractical.

I think that the OP has the right approach.

Sorry, I don't understand the above comment. The OP was thinking of buying a property in 1-2 years and I advised she buys one now instead of waiting. Investing in a property fund for that short period is risky.

puk999

ColdIron wrote: »

Not Glanmore by any chance? A friend of mine put a considerable sum into it, the results were not pretty

http://www.trustnetoffshore.com/Factsheets/Factsheet.aspx?fundCode=GGF95&univ=DC

Wow, what a drop!

MickeyEllis

Ok as the original poster. Thankyou, there have been quite a few comments - so putting them all together. I think my plan is to divide the money into 3 chunks:
a) keep some of the money in bank accounts / cash ISAs.
b) put some of the money into HSBC FTSE 250 Acc index tracker fund (as there's quite a correlation between FTSE 250 and property prices - with the FTSE swinging more).
c) put some of the money into a commercial property fund. I take the point about possible loss of liquidity and fees.
Is any of this crazy?

mike88

MickeyEllis wrote: »

Ok as the original poster. Thankyou, there have been quite a few comments - so putting them all together. I think my plan is to divide the money into 3 chunks:
a) keep some of the money in bank accounts / cash ISAs.
b) put some of the money into HSBC FTSE 250 Acc index tracker fund (as there's quite a correlation between FTSE 250 and property prices - with the FTSE swinging more).
c) put some of the money into a commercial property fund. I take the point about possible loss of liquidity and fees.
Is any of this crazy?

Apart from a): Yes. Investing in anything other than cash for only 1-2 years is utter madness.

Any correlation with the FTSE 250, even if it exists, will more than likely soon end as FTSE 250 stocks are overblown and due for a fall and property is probably on the way up.

Bantex_2

I would just buy a place and rent it out for a year or two. Then sell when the capital is needed.