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ISAs vs Property

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Which is a better investment financially? And that's property to live in not to let out...
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  • dunstonh
    dunstonh Posts: 119,640 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ISAs are a tax wrapper and not an investment.  You can place 30,0000+ different investments in an ISA.  Some will be good, some will be bad.
    A property to live in does not provide any income and you always need somewhere to live.  So, it isn't really an investible asset, even though over time, house prices tend to go up in most periods.  If you move later on, then the house you move to would have gone up as well. 

    So, your question doesn't really have an answer unless you wish to give it a wider context where it may be possible to answer with more detail.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Albermarle
    Albermarle Posts: 27,795 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    In addition there are different sorts of ISA , so I think if you want a sensible answer then you will have to put some effort in and provide a lot more context and detail about you .
  • Alexland
    Alexland Posts: 10,183 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    The best thing is usually to have both a roof over your head and tax efficient savings and investments. You should do what is needed to get into a good position and it can mean different financial priorities at different points in your life.
  • How do I begin to decide which is the best ISA?
    I have 20k. But I could put in the same after April 5th. Thought it may be better than leaving the money in my savings account. I am too old for a LISA. Guess I may want to buy property sometime... but not sure when, maybe in year, maybe 5 years, maybe 10years...
  • Alexland
    Alexland Posts: 10,183 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Start by working out the price of the property you are likely to buy, the mortgage you can raise based on a multiplier of your income and number of years it will run for (your age might be a factor if over 40) and that will enable you to work out the required deposit then consider how long it will take to save up that much money. If it's too long to get the deposit together you might need to adjust you numbers for inflation and rework on a shorter mortgage duration. Once you know how much you are going to save over how long you can determine a savings or investment strategy.
  • I may not need a mortgage.

    Unsure whether it is best if I get an ISA to get a do-it-for-me platform... it recommends three here:

    https://www.moneysavingexpert.com/savings/stocks-shares-isas/
  • TheAble
    TheAble Posts: 1,676 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If you don't own a house to live in yet I would focus on that.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    edited 2 April 2021 at 5:53AM
    Why not have both...they are complimentary. You get great tax advantages with the ISA and hopefully investment growth and property can deliver significant capital appreciation over the years and provide you with the security of owning your own home. 

    If you are young I would be looking at your workplace pension as well as the ISA as you will get a contribution from your employer. Also before you do anything make sure you have at least 6 months spending in a bank saving account for emergencies and if you then get a DC pension or ISA invest in inexpensive broad tracker funds like a global equity index fund. Vanguard is inexpensive and has more than enough funds to choose from. But whoever you go with make sure it's a mainstream platform.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • With Vanguard, do I just add 20k in where it says cash on the registration. And then I can pick stocks and shares later if I want...
  • eskbanker
    eskbanker Posts: 37,039 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    With Vanguard, do I just add 20k in where it says cash on the registration. And then I can pick stocks and shares later if I want...
    It's important to distinguish between platforms and investments - Vanguard do offer both but if you choose to use their platform then that limits you to buying their own investments, rather than funds from other managers or individual shares.  Many are quite happy with Vanguard as a platform, and it is cheap to be fair, but you need to be aware of its restrictions before committing to it....
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