Investing for a house deposit

Tonys101

Best way to Save for a house 

-would investing in the stock market or funds be a good way to get a deposit for a house?

-what are some of the best ways get enough money to buy a house or get a deposit

Albermarle

Tonys101 said:

Best way to Save for a house 

-would investing in the stock market or funds be a good way to get a deposit for a house?
Only if the purchase was many years away . Investing is a long term game 

-what are some of the best ways get enough money to buy a house or get a deposit
First port of call is usually a LISA

Lifetime ISA (LISA): how they work & best buys - Money Saving Expert

grumiofoundation

-would investing in the stock market or funds be a good way to get a deposit for a house?

Yes/No. 

How long are you planning to invest for? As above investing a house deposit is risky in the short/medium term. 

-what are some of the best ways get enough money to buy a house or get a deposit

Are you a first time buyer?

If eligible a cash the lifetime ISA is a good product (for property <£450,000)

https://www.moneysavingexpert.com/savings/lifetime-isas/

It might sound glib but the best way to save for a house deposit is save as much money as you can. How much you can save will be limited depending on your salary, financial commitments. Beyond that there are always ways to save more, although some sacrifices you may well decide aren't worth making. 

Tonys101

I am not eligible for a lifetime ISA

So I ask again could I invest my money in a good quality fund in order to buy a house 

Thoughts 

MaxiRobriguez

Tonys101 said:

I am not eligible for a lifetime ISA

So I ask again could I invest my money in a good quality fund in order to buy a house 

Thoughts 

You've had the correct answer, twice.

grumiofoundation

Tonys101 said:

I am not eligible for a lifetime ISA

So I ask again could I invest my money in a good quality fund in order to buy a house 

Thoughts 

Yes of course you can. Whether it it sensible to do so is another question.

The shorter the timescale you are looking to save for the more risky this becomes.

How long are you looking to save for?
How much are you looking to save and how much do you need?
How much would investing actually speed this up for you?
Broadly the higher returns you aim for, the higher risk you will need to take.

On a side note what do you mean by 'good quality fund'? Obviously we all want a good quality fund, when it comes to actually identifying one the issues begin!

HCIMbtw

You can invest it sure 

And you will make, or lose money

Investing short term is just rolling the dice

Tonys101

MaxiRobriguez said:

Tonys101 said:

I am not eligible for a lifetime ISA

So I ask again could I invest my money in a good quality fund in order to buy a house 

Thoughts 

You've had the correct answer, twice.

?? I am asking this question because not allowed to get a  lifetime ISA

El_Torro

If you're planning to invest for 10 years or more then yes, it's a good idea to invest a house deposit.

This is the reason why you've already been asked several times how long you are planning to invest for. If you actually give answers to people's questions you'll find this thread lot more useful for you.

MaxiRobriguez

Tonys101 said:

MaxiRobriguez said:

Tonys101 said:

I am not eligible for a lifetime ISA

So I ask again could I invest my money in a good quality fund in order to buy a house 

Thoughts 

You've had the correct answer, twice.

?? I am asking this question because not allowed to get a  lifetime ISA

You asked whether you could invest in a fund in order to buy a house.

The two previous posters to me suggested you can, but only if your house purchase is a few years away (in order to ride out volatility associated to capital-at-risk products).

Those were both good answers. There's really not much else to discuss - if you invest in a fund for a year or two you could be up 20% or you could be down 20% - it's not an appropriate saving mechanism. Arguably longer term investing is not an appropriate saving mechanism either as it's still capital risk, but the theory goes over a long enough time period your investment will average out to about a 5-10% annualised gain...

... But it is not guaranteed like a savings account rate. 

Ebe_Scrooge

You've been told several times already, the stock market is not really a suitable investment vehicle for a house deposit.  At the end of the day it's a gamble, pure and simple.  Properly-managed, and over the longer term, odds on you'll get a higher return than sticking your money in a standard savings account.  But you need to be looking, really, at 10 years minimum to iron out fluctuations.  It's eminently possible to make a loss in one year, the expectation is that you'll make a profit over the long term, though nothing is guaranteed.

Most pensions, for example, are invested in the stock market, but the investment period is 20, 30, 40 years, something of that order.

For a standard house deposit, you need to be looking at something simpler.  If an ISA is not available to you then you may have to accept that you'll just have to save up the deposit the hard way, keep it in the best "ordinary" savings account you can find and earn a tiny bit of interest on it.

Unless you fancy going to the casino and sticking a couple of grand on number 13.  You never know, you could get lucky .......