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I am going to wait to buy a house for atleast 4 years. I would like to start something (an interest building account) that is locked (meaning I CAN NOT touch it till 4 years are up) and I dont know what is out there. Any of you finance gurus care to give me ideas of where to stick my money?
 

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You can lock it up in a term deposit... probably only pay 3 or 4 points but it's guaranteed and you can't access it.

edit: I'll bet if you were to ask your banker they would have some sort of "home savings plan" tailored to exactly that purpose.


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Disclaimer: I am not an expert

I would recommend 6-12month CDs (or money market if the rate matches). While you may earn less you will not lose principal. Given your timeline you are on the edge of a long term investment but I would think the risk out weighs the gain. Also I would not let the convince you to go longer term since return rates are rising.
 

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I don't know how it works in the states but I know that I used a first time home buyers plan with my RRSP's they let you withdraw all of your investments and use them as a down payment, giving you 15 years to pay them all back intrest free...Pretty good deal if you ask me. Ask your banker/investment person if they know of anything similar?
 

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Northern RR said:
I don't know how it works in the states but I know that I used a first time home buyers plan with my RRSP's they let you withdraw all of your investments and use them as a down payment, giving you 15 years to pay them all back intrest free...Pretty good deal if you ask me. Ask your banker/investment person if they know of anything similar?
NEVER do that in the US. The loan is due if you leave the company (voluntarily or not)
 

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This was 5 years ago...I am still very happy with my decision, I have almost paid it all back and have still made decent returns on the money I used to do it. :idunno:
 

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You would be better off buying a home you are not completely satisfied with and sell it in 4 years for a healthy profit. Count the money you didn't piss away on rent for 4 years profit as well.:rolleyes:
 

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smkeatr said:
You would be better off buying a home you are not completely satisfied with and sell it in 4 years for a healthy profit. Count the money you didn't piss away on rent for 4 years profit as well.:rolleyes:
Not everywhere has property that is going up at a stupid rate like FL ;)
 

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smkeatr said:
You would be better off buying a home you are not completely satisfied with and sell it in 4 years for a healthy profit. Count the money you didn't piss away on rent for 4 years profit as well.:rolleyes:
What are the extra costs over there for buying a house? For example stamp duty, legal fees, surveying etc?

Ovver here you need to hang on to a house (say if your buying round the $AU250,000 mark which doesnt get you much) for at least 7 years to break even. If you guys dont have such big costs associated with buying a home then Id say definately put it into a house.

Else prolly just wrap it up in a term deposit. You could no doubt make it work harder if you searched around, but term deposits are safe and flexible. Id go 12 months at a time, and just roll it over for the next 4 years. You never know when you might NEED the money for something very important. Itd suck to know you have to wait 2 1/2 more years before you can touch it.
 

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A very wise person once told me that a house is really a good investment ONLY if you can use it. This person was not a real estate speculator obviously, but the fact that you can get into something modest today, work on it a little for the next few years while earning a POSSIBLE return on your investment is only valid to John Doe if he can USE it in the meantime.

Unless you are a broker or have lots of time and cash to spend on repairs and upgrades, most people won't reap a lot of benefits trying to buy and sell homes in a volatile market.

Still, probably a very sane investment for you and your family . . .
 
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