I will most probably be buying a house in 4-5 years time. Would you advice to save up the house fund in bank or buy safe stocks and sell it 4-5 years later to fund for housing expense (reno etc.)? - Seedly
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Anonymous

Asked on 11 Sep 2018

I will most probably be buying a house in 4-5 years time. Would you advice to save up the house fund in bank or buy safe stocks and sell it 4-5 years later to fund for housing expense (reno etc.)?

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Brandan Chen
Brandan Chen, Financial Planner at Manulife Singapore
Level 7. Grand Master
Answered on 14 Feb 2019

Firstly, whats your definition of safe stocks?

Secondly, Do you currently have the amount that is sufficient for your housing expense? Or still saving up for it?

Suggestion: There are no such thing as safe stocks. Do note that Investment returns are never guaranteed but your housing expense in the future is. If you are able to take up some risk, perhaps apportion about 50% to 70% of the fund is lower risk products such as SSB, Fixed Deposit, Citibank Maxigain, or Single Premium Endowment Plans offered by Insurers from time to time. With the remaining fund, perhaps you can consider placing it in REITS or Defensive Industries to reduce your loss should a crisis occur

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Teo See Hwa
Teo See Hwa, MArketing Associate at Propnex
Level 5. Genius
Answered on 19 Mar 2020

Never save to buy property, you will never buy when property price increase.

Buy what you can instead and upgrade later.

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Andy Sim
Andy Sim, HR Professional at a Financial Institution
Level 7. Grand Master
Answered on 09 Mar 2020

I would put it in a bank or buy SSB or fixed deposits cos these are capital guaranteed options. Separately, I'll think of ways to increase my income through side hustles, promotions etc. Active income is best for short terms needs.

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Davin
Davin
Level 7. Grand Master
Answered on 09 Mar 2020

I think the problem is there is no safe stock. I would put the money into bonds or some capital guaranteed tool if im sure i need to use the money if 4-5 years time.

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MT2020
MT2020
Level 7. Grand Master
Answered on 09 Mar 2020

If you need the money soon, it would be good to invest in etfs or robo advisor as they already help you diversify your portfolio.

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Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Answered on 24 Sep 2018

The “safe stock” option is risky because we do not know the market conditions in 5 years however 5 years is a good time frame.

i think putting it into the market is a good idea to either gain dividend payouts for 5 years or capital gains if the stock rises

it it would be good to spread the risks out between capital gain stocks ETF and maybe some REITS

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Nicholas Chan
Nicholas Chan
Level 6. Master
Answered on 15 Sep 2018

Five years is a decent time frame for investing in equities. Buy an emerging market etf, valuations are low now.

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Jason Sin
Jason Sin
Level 8. Wizard
Answered on 15 Sep 2018

Save 50% using Singapore Saving Bond and invest the other 50% in stocks and bonds. Just a suggestion and please do your homework.

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Just saying no 100% safe stocks. If recession or market correction hits, when you want to fund your housing, you might have to wait awhile for it to stabilize. Learn more about investments and how to diversify your investments.

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