Where to put money

Davidnotmark

I've been saving for a really long time and have nearly £100k now - I live in London but don't think I could afford something I'd really like as I'm single and don't want ridiculous mortgage payments. I pay a lot for rent which is annoying as I'm throwing money away. I only plan on being in London one more year or so - should I just continue to save and buy something with my savings next year where I want to live (up north?), or invest in a property even if just for a year and then buy something nicer in a year? (id lose first time buyer perks if I do that though). Currently the interest on my accounts is very low so have been considering buying stocks but wouldn't want anything too risky but have no idea where to start!

El_Torro

If you're planning to move in a year I certainly wouldn't buy a property to live in now. Wait until you're where you want to be and buy a property there. If nothing else the buying fees of buying now, then selling, then buying again in a year will be high. That's without mentioning the hassle of it all too. 

In your position I would decide how much of my £100k is going to go towards a deposit and save that. Then once you're happy your emergency fund is covered too then maybe think about investing the rest. Certainly don't invest in stocks and shares with the plan to cash them in in one year and put the money in a house deposit.

MovingForwards

Just keep saving and buy in a year or so when ready to move.
Don't put your money into S&S when you need it for a home, especially when it's only for a year, it's too risky. 
Don't buy somewhere now due to losing your FTB perks.
Keep saving, try and find a few accounts with reasonable interest rates and see how much you need for up north, what type of property you want and keep an eye on what's about and prices. Use the time until you move to work out where you want to buy.

Albermarle

Would make sense to have a LISA?
https://www.moneysavingexpert.com/savings/lifetime-isas/

apb123

It is difficult isn't it.

I would be wary of stocks until we know how the Covid 19 nightmare will pan out.It could be worse than we ever imagined and I get the impression the Stockmarket is overvalued right now. The same for bonds.

I have kept things in NS&I but I know our old friend inflation is around the corner to gobble it all up.

Buying a house might not be a bad idea with the stamp duty cut. However you would need to know where you will end up.

steampowered

The suggestion that rent is "throwing money away" is just absurd. You are not throwing money away. You are paying for somewhere to live. 

Likewise, if you were to buy a property, you would be "throwing money away" on mortgage interest; lender fees; conveyancing fees; survey fees; stamp duty; moving costs; and the opportunity cost for other things you could be doing with your savings.

Buying for only 12 months would be madness. After taking account of the costs and fees involved you wouldn't be saving money on it compared to renting. 

You are better off continuing to save, making the most of a Lifetime ISA if appropriate, and buying when you are fully settled in a new area and new job.

Eco_Miser

Your time frame is far to short to consider investing, or buying a 'now' house just to sell in a year's time. However this is one of the few times Premium Bonds make sense. Buy the maximum and you've (very small) chance of a big win, and a reasonable chance of small wins giving over 1% return. The only guarantee is that you'll get your original deposit back though.

ElephantBoy57

You are asking if you should keep your money in an account which is behind inflation, as opposed to investing in something which could go up or down, but in the long term will probably go up.

I have a small amount of money invested in shares, they are all down at the moment, but I am hoping they are mostly in profit next year. You are obviously unhappy if your £100K is losing money.

grumiofoundation

Davidnotmark said:

I've been saving for a really long time and have nearly £100k now - I live in London but don't think I could afford something I'd really like as I'm single and don't want ridiculous mortgage payments. I pay a lot for rent which is annoying as I'm throwing money away. I only plan on being in London one more year or so - should I just continue to save and buy something with my savings next year where I want to live (up north?), or invest in a property even if just for a year and then buy something nicer in a year? (id lose first time buyer perks if I do that though). Currently the interest on my accounts is very low so have been considering buying stocks but wouldn't want anything too risky but have no idea where to start!

To echo most of the posters buying a property and selling it after a year is very likely to lose you money on the cost of buying/selling before even considering the risk of property going down in value. When you factor in lifetime ISA, FTB stamp duty relief makes sense not to buy if you are going to sell within 1-2 years.

Over a 1 year timeframe stocks and shares is risky - there is a chance you will end having less in 12 months than you pay in today.

sebtomato

steampowered said:

The suggestion that rent is "throwing money away" is just absurd. You are not throwing money away. You are paying for somewhere to live. 

Well, paying rent as opposed to repaying a mortgage is indeed "throwing money away" (paying someone else to increase their wealth instead of building your own, while having a place to live at the same time).

Socajam

I would put 50k in Premium Bonds.
What do you have to lose?  Interest on saving account are close to nothing.