Lump sum for 3-4yrs, where should i put it?

B

BigMac81

Guest
It looks like I may be coming into a lump sum of nearly €100k. I will almost definitely use this as a deposit on a house in 3-4 years.
Any advice on where to put it for a good return, like which Bank or Building Society has the best interest. Don't know much about investment funds and must admit I am wary about them given the current climate.
Any advice is greatly welcomed...
 
Have you checked the Financial Best Buys forum lists of deposit products/rates on offer?
 
No I'll luck at it now. Only registered with this site in the last few mins, need good advice cos I sometimes feel like the Bank staff are salespeople tryin to get you into their latest product, even if they are all tied up in Irish investments which look like trouble...
 
Why not invest in a property fund for the 3 - 4 years. It might be a better match to your expected situation.
 
DerKaiser said:
Why not invest in a property fund for the 3 - 4 years. It might be a better match to your expected situation.
Click to expand...

Hmm. Could be a way of maintaining his present purchasing power against any future rise/fall in irish property as OP is planning to use money to purchase a property in the future.

If Irish property prices rise in next 3-4 years, so does his property fund investment. If house prices fall, so does his property fund investment.

Either way, he mantains the property purchasing power of his original 100K.
 
But not a great tactic for someone staying out of the market due to expectation of a continuing soft market.

Surely if the requirement was an exposure to residential property - the OP could buy now (€100K is not an insignificant chunk of equity).
 
Not all sectors of a market are effected evenly. So if he invests in irish property gennerally speaking the section of the market he may be using his money for deposit may more/less inflated/deflated than his investment.
 
true enough, most property funds invest in commercial rather than residential property, but this would still be a better match than cash or equities.
I think a residential property fund would be attractive to people wanting to get a start on the property ladder as
1. Their asset would be more liquid and marketable than an actual piece of property
2. They could retain their first time buyer status to avoid stamp duty on their ultimate home

There is the drawback that tax on gains would be payable.
 
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