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What’s the best thing to do with money from the sale of a property?

SRob5on
Posts: 7 Forumite

Hi everyone, just wanted some advice on what do do with money from the sale of a property? So, we were looking at putting £100 to £150k into an account to earn some interest and add extra to it monthly (but don’t want to be tied into having to do this every month). We don’t necessarily want to have instance access to those funds either. What do you think would be the best way forward and what type of account do you think we should go for? Thank you

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Much will depend on when you're likely to need the money, but probably worth reading through the MSE guides about the different types of account:
https://www.moneysavingexpert.com/savings/which-saving-account/
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
Depending on your broader financial circumstances it may make sense to consider pensions, other investments, properties, etc, rather than simply savings accounts....0 -
Whatever you do, it's worth reading up on the FSCS protection limits.
I believe proceeds from house sales will be covered fully for six months, but after that, it's £85 K (single account) or £170 K (joint accounts) per bank."Real knowledge is to know the extent of one's ignorance" - Confucius1 -
kinger101 said:Whatever you do, it's worth reading up on the FSCS protection limits.
I believe proceeds from house sales will be covered fully for six months, but after that, it's £85 K (single account) or £170 K (joint accounts) per bank.1 -
kinger101 said:Whatever you do, it's worth reading up on the FSCS protection limits.
I believe proceeds from house sales will be covered fully for six months, but after that, it's £85 K (single account) or £170 K (joint accounts) per bank.Now a gainfully employed bassist again - WooHoo!3 -
eskbanker said:kinger101 said:Whatever you do, it's worth reading up on the FSCS protection limits.
I believe proceeds from house sales will be covered fully for six months, but after that, it's £85 K (single account) or £170 K (joint accounts) per bank.0 -
How far in the future before you buy again?6 Months? 2 years? 5? Or just no idea at present?The answer could significantly alter the advice about where to keep the money.0
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greatcrested said:How far in the future before you buy again?6 Months? 2 years? 5? Or just no idea at present?The answer could significantly alter the advice about where to keep the money.0
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If you are going to use the money in the 2 to 5 year time scale to buy a house then what you need is for the money to be invested in such a way not only to beat inflation but to beat house price inflation
In my opinion to do this you will probably need to take some risk. And actually depending on your view of where you think house prices will go you may not even be able to achieve this so your savings will be losing money in real terms when measured against the increase in house prices
What I don't understand is if you are going to buy a house using this money why don't you do it now rather than waiting 2 to 5 years?0 -
happy_hazelnuts said:If you are going to use the money in the 2 to 5 year time scale to buy a house then what you need is for the money to be invested in such a way not only to beat inflation but to beat house price inflation
In my opinion to do this you will probably need to take some risk. And actually depending on your view of where you think house prices will go you may not even be able to achieve this so your savings will be losing money in real terms when measured against the increase in house prices
What I don't understand is if you are going to buy a house using this money why don't you do it now rather than waiting 2 to 5 years?0 -
Yes it makes sense. You want to sell, hold the money in an investment and wait for a housing crash, then buy.
House prices are predicted to fall, and I personally believe they will in the short term. There are a lot of other factors in the economy currently. A lot of 'unknown unknowns.' My sense is that your strategy to gamble on house prices becoming more favourable to you is a risky one. Personally I wouldn't risk the value of my house to hopefully acquire a better house, at least not at this particular time with all the covid uncertainty. A housing crash could easily be accompanied by a crash in the value of your investments, for instance. But it may be a gamble worth taking if you suss out the risks and rewards accurately. You'd need to get expert advice on whether the housing market in the South East is likely to follow a nationwide downtrend.
Essentially, it's a gamble. So you need to get an estimate of the odds of you succeeding, and then decide if that's a risk you are comfortable taking.1
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