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

eskbanker

Retired_Minky said:

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.

If you've agreed the price then inflation makes no difference, assuming the purchase goes ahead of course!

Either way, you can't keep your options open indefinitely, so have to make decisions based on most likely outcomes and plan accordingly - if the purchase doesn't proceed then you might have lost 1% in real terms but in the grand scheme of things that's hardly material, compared with the risk of a double-digit percentage shortfall if staying invested until the schedule purchase date....

grumiofoundation

Retired_Minky said:

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.

Inflation isn’t really going to eat very much over 6 months though. 

More of an issue is if the property falls though would be deciding to invest or save of new purchase could drag on for much longer. But hopefully that’s not a problem you will face.

jamesd

Retired_Minky said:

Just hurts as inflation will be eating away at it. 

Consider an alternative experience that I had.

One Feb I added around 25k to my account at a peer to peer lending firm that was on the FCA regulated list. My intent was to make some interest for a few weeks then withdraw it all before the end of the tax year. A few weeks later the FCA arranged for it to be placed into administration on the grounds that it wasn't FCA approved - even though it was showing approved in the FCA's own database - and there was suspicion of fraud. Years later and it remains unclear when and how much money I'll get back.

Your cash inside an ISA is almost certain to be safe - if it's a deposit, which it might not be, it'll have FSCS protection, ask the ISA to be sure - and the invested funds even more so. But if the ISA provider went into administration your money could still be locked away for years.

Cash ISAs are always classed as deposits with FSCS protection, it's just investment types that aren't necessarily so.

If the S&S ISA is flexible you might be able to withdraw the money and pay it back in later in the same tax year, again, ask the ISA provider, but it's unlikely for a S&S ISA.

Thrugelmir

Retired_Minky said:

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.

House prices aren't linked to inflation though.