Investments

Property

Asked by Anonymous

Updated on 18 Apr 2019

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 5. Genius
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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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 5. Genius
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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Good Day Every Day
Good Day Every Day,
Level 6. Master
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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