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PropertyAnalyser

Best Place For My House Deposit?

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Having read all about house prices in the UK being at a record high, and seeing many predictions of a stagnant market, or maybe even a crash in the next few years, I need a place to put my deposit savings in order to maximise my return over the next 3-5 years or until I can afford a house!.

I really don't want to have to watch the markets on a daily or even monthly basis, so I figured a cash, or managed ISA would be my best options.

A Cash ISA would allow me to save £3000 per year at about 4.5%. OK, but 4.5% isn't that much more than inflation or some predictions for the house prices, but it is safe.

A stocks and shares managed ISA fund could yield 10-50%+ per year, but may also fall.

Is there evidence that stocks and shares fall along with house prices? Anyone have some charts?

Do those of you that know more about it than I do, think that the Stock market would be a reasonable bet over the next 3-5 years or is it likely to go down with the house prices?

Thanks,

Stuart

P.S. I have about 10K to invest now and about £250 per month after that.

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Alliance and Leicester are doing a ISA of 5.2% until April 2007

If you get it in before April - you can add another 3K after April (new tax year)

Also they are doing a savings account (linked to their current account) that will pay 10%

but you can only add 250quid a month to it. I think you end up with about 8% gross at the end.

Edited by OzzMosiz

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Alliance and Leicester are doing a ISA of 5.2% until April 2007

If you get it in before April - you can add another 3K after April (new tax year)

Also they are doing a savings account (linked to their current account) that will pay 10%

but you can only add 250quid a month to it. I think you end up with about 8% gross at the end.

Thanks Ozz, I am pretty clued up on Cash products, perhaps my initial post wasn't very clear :unsure:

I was really asking if there is any link between house prices and the stock market. i.e. if house prices crash, will the stock market do the same?

Are there any charts/graph that show a link between the stock market and house prices?

I would like to move some of my Cash savings to higher return stocks and shares, but if they are going to bust or stagnate with the house prices, I am probably better off with the guarenteed cash interest.

Cheers,

Stuart

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I was about to start a similar topic but Stuarts position doesn't seem a million miles from my own. I've got ~15k tied up in ISA/savings but I'm worried about the threat of inflation.

I've heard people talk about getting out of sterling and into another currency..... but what is the process for doing this and what are the risks ?? When account arrangement fees etc.. are taken into account, is it worth it for a reasonably small amount ?? I'm having some low value "dabbles" in higher risk investments but I want to ring-fence these savings for when I intend to buy (2008).

I'm off to do some of my own research but any suggestions would be appreciated.

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I was about to start a similar topic but Stuarts position doesn't seem a million miles from my own. I've got ~15k tied up in ISA/savings but I'm worried about the threat of inflation.

I've heard people talk about getting out of sterling and into another currency..... but what is the process for doing this and what are the risks ?? When account arrangement fees etc.. are taken into account, is it worth it for a reasonably small amount ?? I'm having some low value "dabbles" in higher risk investments but I want to ring-fence these savings for when I intend to buy (2008).

I'm off to do some of my own research but any suggestions would be appreciated.

If you want something a bit more exciting/ aka risky I would strongly suggest looking at the Motley fool site. Look at the top recommended posts. The guys there do a tremendous work in trying to work out undervalued shares (and no ramping allowed). Spend some time on there and if you see a post by a top recommended guy I would seriously consider their advice.

Inflations a bugger cos you get taxed on your interest so effectively you are suffering negative real interest rates - which is why most people are doing the opposite and getting fixed term mortgages where your loan is effectively being wiped out by inflation.

Myself 80% Cash 10% Gold, 10% Exploration Oil Stocks.

This is for the longer term though.

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Stuart,

First things first - welcome to HPC. :D As I'm sure you know, there are lots of friendly, helpful, like-minded (savers!) people on here. Many of them are very experienced and some are even intelligent!!

BUT second things second, always take professional advice and use message boards only as a way of educating yourself or discussing issues.

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  • 341 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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