Investing for a house deposit

Tonys101

I posted this question because I got roasted on another forum

I generally do believe you could invest some money to get a little bit of extra cash for a house deposit. 

I don't recommend you buy shares I would recommend you buy funds there are many good active funds that go up  year on year

grumiofoundation

Tonys101 said:

I posted this question because I got roasted on another forum

I generally do believe you could invest some money to get a little bit of extra cash for a house deposit. 

Yes of course you can, no one said you can't.

You could also end up investing some money and having to withdraw it at a point where has dropped and have a little bit less cash for a house deposit

Depends if you are willing to take that risk? 

I don't recommend you buy shares I would recommend you buy funds there are many good active funds that go up  year on year

(Not sure who you are recommending this to but yes broadly a fund is lower risk than shares in one company).

But active funds can, and do, drop by double digit %s. 
Unless you know an active fund that has never dropped in value?

eskbanker

grumiofoundation said:

Tonys101 said:

I posted this question because I got roasted on another forum

I generally do believe you could invest some money to get a little bit of extra cash for a house deposit. 

Yes of course you can, no one said you can't.

You could also end up investing some money and having to withdraw it at a point where has dropped and have a little bit less cash for a house deposit

Depends if you are willing to take that risk?

A post from half an hour earlier would suggest that OP has already had a chance to learn that particular lesson....

Tonys101 said:

I am new to investing well new as I learnt my lesson 1 or 2 year  a ago I sold my lindsell train global equity fund cuz I was scared and it was  COVID 

FOR IT TO UP A YEAR LATER 😤

Tonys101

grumiofoundation said:

Tonys101 said:

I posted this question because I got roasted on another forum

I generally do believe you could invest some money to get a little bit of extra cash for a house deposit. 

Yes of course you can, no one said you can't.

You could also end up investing some money and having to withdraw it at a point where has dropped and have a little bit less cash for a house deposit

Depends if you are willing to take that risk? 

I don't recommend you buy shares I would recommend you buy funds there are many good active funds that go up  year on year

(Not sure who you are recommending this to but yes broadly a fund is lower risk than shares in one company).

But active funds can, and do, drop by double digit %s. 
Unless you know an active fund that has never dropped in value?

Is this a joke here are two that have consistently gone up
Blue whale fund 
Fundsmith equity 

Rathbone global opportunities
Picot robotics
Both have gone up 5 years in a row

This is not to say they will continue to go up forever. But when you say is there funds that have gone up consistently yes they are.

That said the chairman of blue whale fund is none other than Peter Hargreaves.

Again you risk what you can afford to loose, what you don't do is leave all ur money to rot with max 2% interest in a bank 

eskbanker

Tonys101 said:

you risk what you can afford to loose

So you can afford to lose (at least some of) your house deposit money?

grumiofoundation

Tonys101 said:

grumiofoundation said:

Tonys101 said:

I posted this question because I got roasted on another forum

I generally do believe you could invest some money to get a little bit of extra cash for a house deposit. 

Yes of course you can, no one said you can't.

You could also end up investing some money and having to withdraw it at a point where has dropped and have a little bit less cash for a house deposit

Depends if you are willing to take that risk? 

I don't recommend you buy shares I would recommend you buy funds there are many good active funds that go up  year on year

(Not sure who you are recommending this to but yes broadly a fund is lower risk than shares in one company).

But active funds can, and do, drop by double digit %s. 
Unless you know an active fund that has never dropped in value?

Is this a joke here are two that have consistently gone up
Blue whale fund 
Fundsmith equity 

Rathbone global opportunities
Picot robotics
Both have gone up 5 years in a row

This is not to say they will continue to go up forever. But when you say is there funds that have gone up consistently yes they are.

That said the chairman of blue whale fund is none other than Peter Hargreaves.

No joke I don't think you understood my point. 

I think you are either just looking at the annual return (which is pretty meaningless as it just provides a snapshot of the last 12 months for a given date - so only really applicable to you if you invested exactly 12, 24, 36... months ago) or you are just looking at average performance year on year.  Which as the last 5 years has been 'good times' for investors would actually be hard to find many funds that haven't gone up in that period!

What I actually asked was regarding drops in value.

If you look at the performance charts for your 4 funds you will see in March 2020 they all dropped dramatically (which as posted above you have experienced). 
If your house deposit dropped >30% would that impact you?

And would you sell again after it had dropped?

Again you risk what you can afford to loose, what you don't do is leave all ur money to rot with max 2% interest in a bank 

As above so you can afford to lose some of the money? Or is this more of a theoretical point?

This is becoming a circular debate.

You ask can/should I invest my deposit?

You are told - not unless you are willing to risk it dropping in value or time scale is long. 

You then state that you believe it is possible to make money towards house deposit by investing. 

Again are told - yes you could but you risk losing money. 

Ad infinitum.

strawb_shortcake

Weren't there people on these forums circa 16  months ago that suddenly found their S&S (L)ISA had dropped and they no longer had the right deposit for their house purchase? 

grumiofoundation

annabanana82 said:

Weren't there people on these forums circa 16  months ago that suddenly found their S&S (L)ISA had dropped and they no longer had the right deposit for their house purchase? 

I remember this story

https://www.dailymail.co.uk/news/article-8096097/Family-miss-325-000-dream-home-coronavirus-crash-wipes-4-500-ISA.html

Edit: sure there were plenty more people who invested money that 'shouldn't' be invested.