amazingayla
New member
Hey everyone,
Lady Gibbons and I are looking to buy our first house soon. We've already got our deposit ready but we've decided to hold off for 1.5-3 years for the housing market to calm down a bit (more the having to overbid to get a look in side of things rather than concerns about crashes etc) and for our working arrangements (read: wfh) to have more clarity.
As it stands, we have our deposit in premium bonds as we felt we we're close enough to buying that we didn't want to risk it to the markets etc. But obviously that only gives us 1% and right now, with inflation expected to top 7% we could be looking at a significant real-terms fall in the value of our deposit if this high-inflation environment persists.
For people in our position, what's the 'best' strategy for hedging against inflation at the moment? Are there any bond options that may be more appealing than premium bonds where I can just lock it up for a couple of years? Or is it really a case of swallowing the inflation if you have little risk appetite?
And just for completeness - basically all our money is currently in premium bonds & cash LISA's, with a small amount in crypto, a S&S ISA, and cash for six months expenses.
Thanks!
[EDIT] Thanks everyone for the feedback. Just wanted to flag that I feel like my comment on waiting for the market 'calm' has mislead people. Even if the market wasn't mad, the other reasons mean we wouldn't be in ready to buy for the next 1.5-3 years anyway.
Lady Gibbons and I are looking to buy our first house soon. We've already got our deposit ready but we've decided to hold off for 1.5-3 years for the housing market to calm down a bit (more the having to overbid to get a look in side of things rather than concerns about crashes etc) and for our working arrangements (read: wfh) to have more clarity.
As it stands, we have our deposit in premium bonds as we felt we we're close enough to buying that we didn't want to risk it to the markets etc. But obviously that only gives us 1% and right now, with inflation expected to top 7% we could be looking at a significant real-terms fall in the value of our deposit if this high-inflation environment persists.
For people in our position, what's the 'best' strategy for hedging against inflation at the moment? Are there any bond options that may be more appealing than premium bonds where I can just lock it up for a couple of years? Or is it really a case of swallowing the inflation if you have little risk appetite?
And just for completeness - basically all our money is currently in premium bonds & cash LISA's, with a small amount in crypto, a S&S ISA, and cash for six months expenses.
Thanks!
[EDIT] Thanks everyone for the feedback. Just wanted to flag that I feel like my comment on waiting for the market 'calm' has mislead people. Even if the market wasn't mad, the other reasons mean we wouldn't be in ready to buy for the next 1.5-3 years anyway.