Best fund/investment for funds for property purchase in 3 to 4 months

Retired_Minky

Hi. Need some advise.

I have my money in a stocks and shares ISA invested in Vanguard Lifestyle 60.

I've agreed a property purchase but the sale won't go through until January or February 2022 as the current occupant won't move out until then.

I want to leave the funds in the ISA in case the house purchase doesn't go through so it's still protected in the tax free wrapper. However not sure what fund to move it to.

I'm guessing a bond but would like some suggestions as to which ones you'd recommend. Key thing is the funds remain in the ISA stocks and shares wrapper.

I could convert to cash in the ISA but it pays 0% so I'm guessing some stable fund should be able to do better.

Any advice appreciated.

grumiofoundation

How much of a drop can you tolerate and still complete? 

A ‘stable’ fund could well return less than 0% over the next 6 months. Are you willing/able to take that risk?

ColdIron

Cash is king for that timescale

DoublePolaroid

You could just sell your LS60 holding but keep the money in you S&S ISA account as cash. That way your money is entirely safe but if the house sale falls through you haven't lost the ISA wrapper for your money and you could pile it back in to the LS60 (or whatever) fund.

DoublePolaroid

Oops, please ignore my previous post; I'll rap myself on the knuckles and in future try to actually read the OP properly.

Eco_Miser

Retired_Minky said:

Hi. Need some advise.

I have my money in a stocks and shares ISA invested in Vanguard Lifestyle 60.

I've agreed a property purchase but the sale won't go through until January or February 2022 as the current occupant won't move out until then.

I want to leave the funds in the ISA in case the house purchase doesn't go through so it's still protected in the tax free wrapper. However not sure what fund to move it to.

Are you saying that if this purchase fails you won't be buying somewhere else instead?

Because unless that's the case, I can't see any particular reason for not selling the funds and withdrawing to the highest paying easy access (or notice) cash account until you need to pay. Most people can earn £1000 unwrapped interest before paying tax. If this isn't you, transfer to a Cash ISA to keep the status.

jamesd

Cash inside the ISA is the way to go. Money market funds are possible if cash isn't allowed but those might have an expected loss rather than gain. 0% beats not completing.

bostonerimus

If you have a definite purchase within the next year I would keep the money all in cash.

Thrugelmir

Retired_Minky said:

I could convert to cash in the ISA but it pays 0% so I'm guessing some stable fund should be able to do better.

Little point in guessing. As an investor you should spend more time considering the negatives.  How much capital can you afford to lose? 

Retired_Minky

Thanks for the advice. Looks like cash is king. 

Just hurts as inflation will be eating away at it. I don't want to remove the funds from the ISA. If the sale falls through it might be a long while before I find a replacement property or I might decide to stay put.

Alice_Holt

Retired_Minky said:

Thanks for the advice. Looks like cash is king. 

 I don't want to remove the funds from the ISA. If the sale falls through it might be a long while.....

     Indeed.

    Then consider transferring into a cash ISA ?    (as suggested by eco_miser) 
   https://www.which.co.uk/money/savings-and-isas/isas/cash-isas/how-to-transfer-your-cash-isa-azbkn7q59d08#headline_9