Hi all,
My wife and I are planning to buy a house in 2 years. I have about $50K saved up for a deposit, and will likely save more.
I've been holding on to this fund as Cash as I don't want anything too risky. But it hurts to hold all this money as cash for 2 years.
I'm looking for a stable investment vehicle with steady dividends. $O REIT looks interesting to me.
Can I get some advice on what I should do?
Where to invest my house fund?
byu/theenigma404 inpersonalfinance
Posted by theenigma404
4 Comments
HYSA or CD cash. Yes, it’s boring. But it’s safe. There is absolutely no way to make substantial amounts of money without taking on risk and a down payment needed in two years? I’ve been there. All HYSA, all cash, all the time.
If you need the money in couple years put it in a HYSA or CD.
$O is a relatively conservative long-term or medium-term investment, but it’s not a safe short-term option. Interest rate moves can cause significant price changes in it. In the past year its price has ranged from $54.38 – $67.94. You don’t want to be needing that capital when it’s dropped 20%.
If you need money in 1-2 years, do treasury bills, a CD, or a high yield savings account.
HYSA is the obvious answer, but SGOV could potentially be a somewhat safe alternative. Added benefit of state tax exempt distributions.