Where to invest cash while looking for a property to buy?

[BrentAlston]

I recently refinanced a property and have a bunch of cash on hand. Wondering where you would recommend to invest my cash that is fairly liquid, reasonably safe and yields a good return while I am looking for a property to buy? Thanks for the advise.

 

[Alvaro Sanchez]

Depends on how much time you are looking to buy? 3-4 months? I would keep it on a savings account as you need proof of down payment. Longer than that then short term loan to other investors.

 

[MatPiche]

Buy another property

 

[bizaro86]

[quote user=MatPiche]Buy another property





It probably doesn't make sense for him to hold his money in a property while he looks for another property to buy. Taking time to find something good is a good idea, imo.



To the OP: A high interest savings account is your best bet here. The incremental interest you'll get from anything else isn't worth taking any extra risk whatsoever in this situation, imo.



A huge amount of the big financial busts come from people looking to squeeze out a bit of extra yield on short term money they'll need. Examples include asset backed commercial paper in Canada and auction rate securities in the US.



Regards,



Michael

 

[Lahen]

I think just invest it into realt estate or buy a house and rent it out, through it you can also collect money and when you need money then sale the home it will also give you profit.

 

[Thomas Beyer]

I do covered calls and PUT spreads on flat or rising stocks, 2-6 months out, deep in the money for a 4-12% annual yield.



Example: AAPL SLV or ITB

 

[RedlineBrett]

If you can't lose it, put it in a GIC. It's not sexy but you know it will be there when you need it.



When I'm raising money for a project and don't need it before closing, I put it in GICs until such time as it's required.



If it's going to be a long time make sure all your high interest debts are paid off before investing it