Where to invest £150k

khblue

We've just sold a business and have £150k.

It will be for a house when the bubble bursts but I don't have the income or desire to buy now at the peak of the market.

Where do I put it to earn anything decent on it while I'm waiting ?

We've both opened Help to Buy ISAs but is there an option other than opening a heap of accounts each paying 2-4%, and bouncing money between them to satisfy the current account conditions ?

Thanks

Money_Help

Unfortunately there is no quick an easy answer. You will usually always get higher rates the longer you ‘lock’ your money away. You can get better rates if you switch your current accounts and pay a certain amount in each month but you need to consider whether it’s worth the time cost.

Help to buy ISAs are good if you have never bought a house.

If it’s short term saving that rules out investing.

As far as waiting for the market to drop in price, its not always a good idea as you could be waiting years and you should think of your lifestyle and what would make you happier. If having a house now would improve your lifestyle why not go for it. If you don’t have the income then that’s a different matter.

AnotherJoe

Just to be pedantic, you mean save not invest. Invest means shares and funds and bonds and that’s not appropriate when planning to use the money near term or when you can’t take the risk of a market crash since that will likely accompany a house price crash.

As MH says there’s not really anywhere you can get much interest on such a large amount unless you lock it away for years (and even then it’s below general inflation).

As for your cunning plan, how long are you prepared to wait for this bubble to burst? That could be a very long time to never since what’s your plan if prices rise say 30% over the next 5 years then “crash” 25%? Presumably you’d still hold out? There’s one poster here been waiting since the late 1990’s for prices to fall below where he bailed out waiting for a crash.

brexit1986

Huge sum. Take your time

ChesterDog

Just to add to the other voices, be careful of overestimating your (or anyone else's) judgement of markets.

You seem to have some kind of certainty that the housing market is "now at the peak".

Such confidence (which may be justified or may be not) is not generally a useful personal asset when it comes to markets.