Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Saving for house

Reply
NOMAD1
Frequent Contributor
Hi Im saving up R15 000 a month for a house deposit, my timeline is 2 years Should i put the money in savings account or buy shares with it and heck over 2 years how much i have? If shares, which shares do i buy? Regards
0 Kudos
51 REPLIES 51
SimonPB
Valued Contributor
if you need the money in less than 3 years, put it in a bank ..
0 Kudos
NOMAD1
Frequent Contributor
0 Kudos
BC02
Super Contributor
why not buy the pref shares? they return 8% and some of them are very liquid
0 Kudos
NOMAD1
Frequent Contributor
Anyone in particular?
0 Kudos
THRESHOLD
Super Contributor
Because: If yields ride - your prefs will go down and your capital will take a smack. If you know you will need the money in 3 years - you pretty muc have to just keep it in cash. (The next question is {drumroll} why are you buying (not "investing in") a house at all.
0 Kudos
NOMAD1
Frequent Contributor
1st house purchase for myself :-)
0 Kudos
DEP
Super Contributor
Buying a house is a Good investment! Regardless of some comments here...
0 Kudos
DEP
Super Contributor
Buying a house is a Good investment! Regardless of some comments here...
0 Kudos
THRESHOLD
Super Contributor
How do you reconcile your conspiracy theroy rhetoric with your ringing endorsement for buying a house as an "investment?"
0 Kudos
THRESHOLD
Super Contributor
Never listen to people who give unreserved investment advice as in "X is a great invesmtent! (FULLSTOP)"
0 Kudos
NOMAD1
Frequent Contributor
@THRESHOLD, why not buy a house for myself?
0 Kudos
DEP
Super Contributor
Well I have bought few more houses than you can count on yours fingers. So I'm talking for myself... its a good investment.
0 Kudos
Som2
Contributor
DEP > Why is it a good investment (to buy a house), in your opinion? THRESHOLD > Why do you think it is not?
0 Kudos
BC02
Super Contributor
(Not to get into a whole discussion of property v shares) but in my experience buying the house you will live in is (generally) a great investment, any other residential property purchases (buy-to-let) hasnt been worth it - at all. Commercial property has been phenomenal though - (GrowthPoint, Resilient, etc)

Obviously these are also just general statements and you can still make a good profit from a buy-to-let...I just havent seen it yet :)
0 Kudos
NOMAD1
Frequent Contributor
It is generally a good idea to invest in a house to live in, i assume. This is not to rent out.
0 Kudos
DEP
Super Contributor
Out of 16 houses I have bought since 1996 - all of them have beaten inflation except one.
0 Kudos
THRESHOLD
Super Contributor
I never actually said it is not. I just reserved my opinion. I have opined at length on this forum in the past. Property had its day. By way of disclosure, I still have fairly extensive property holdings; but all in elite or nodal areas. In general, though, I think it is a very poor "investment." I'll wait for the "pro" camp to deliver its reasoning before I offer the "cons."
0 Kudos
DEP
Super Contributor
Out of 16 houses I have bought since 1996 - all of them have beaten inflation except one. Commercial and residential property has be good to me since 1996 - its pay the bills - PERIOD!
0 Kudos
DEP
Super Contributor
... Nomad1, have said the above. Find out for yourself what is the 3 most important aspects of property! Then you are on your way...
0 Kudos