Need some advice

[Taureau]

We have been saving to build a house. We've got a good chunk of money in our savings account, but with the economy it doesn't look like we are going to be building soon.

I'd like to put this money (and more each month) somewhere that I can make more money off it than just interest from the bank, but I have to able to withdrawl it easily and not get penalized by withdrawling it to put a down payment on a house. I'm thinking it will be 3-5 years before we build.

What's my options?

I would rent a very secure dry storage and start buying the things you need for your house. Anything you buy now will cost 2x the cost in 5 years or so

Get your lumber, appliances and all the Plumbing and bath and such


I am redoing my bathroom eventually. I bought the tub and surround. They have gone up a lot since I bought them

 

[animal-inside]

I would rent a very secure dry storage and start buying the things you need for your house. Anything you buy now will cost 2x the cost in 5 years or so

Get your lumber, appliances and all the Plumbing and bath and such


I am redoing my bathroom eventually. I bought the tub and surround. They have gone up a lot since I bought them

Thats very interesting and thoughtful advice... Never thought of that, but my worry would be that if those things you mentioned cost 2x more in 5 years than I will be unable to afford to build as the build alone would be that much more expensive

 

[Taureau]

Thats very interesting and thoughtful advice... Never thought of that, but my worry would be that if those things you mentioned cost 2x more in 5 years than I will be unable to afford to build as the build alone would be that much more expensive

Do you have you land to build? if not buy that because land value will go up
then if you have your plan consider my idea

 

[animal-inside]

Do you have you land to build? if not buy that because land value will go up
then if you have your plan consider my idea

I have the land and I paid for power lines to be put in.. It's cleared ready to build

Still pretty scary thought to dump a savings account into house peices without know yuou can buy the house lol

 

[Taureau]

I have the land and I paid for power lines to be put in.. It's cleared ready to build

Still pretty scary thought to dump a savings account into house peices without know yuou can buy the house lol

Are you having it built? Or doing it yourself?

Have you talked to the municipality? Can you build there

 

[BobTbay]

You have a few different options, besides GIC's and ETF's I haven't seen money market accounts and money market funds mentioned. They are pretty short term, days to weeks and because they are bonds, you have more legal protection than equities like stocks, where you can go to zero in worst case scenarios. (however for diversified funds like many ETF's to go to zero Armageddon would have to happen.)

I like Investopedia for basic no nonsense information without any sales pitches.

Money Market Account: How It Works and How It Differs From Other Bank Accounts

Money market account is an interest-bearing account at a bank or credit union, not to be confused with a money market mutual fund.

www.investopedia.com

Money Market Funds: What They Are, How They Work, Pros and Cons

A money market fund is a type of mutual fund that invests in high-quality, short-term debt instruments and cash equivalents.

www.investopedia.com

 

[BobTbay]

I have investing accounts as well, but I think you get dinged hard when you withdrawl it because its considered income no?

I am pretty certain it's only the capital gains you get taxed on. If you put in 100 dollars and pull out one hundred and ten later you only get taxed on the ten dollars profit, not the whole hundred and ten.

also from H and R block, in Canada

Capital gains are 50% taxable. The amount of tax you pay on a capital gain depends on your annual income. That means 50% of the amount you made from selling your investment is added to your income, and then your personal tax rate is applied to the total.

So yeah, if you have a job and make ten bucks you get taxed on ten bucks, if you invest a hundred, and take out a hundred ten, you just get taxed on five dollars. That seems like a rule rich people made up, but ok, let it work for you too.

 

[animal-inside]

Are you having it built? Or doing it yourself?

Have you talked to the municipality? Can you build there

Guessing we will do a RTM... They are more cost efficient compared to the house builders in my area... oil field jacks price of any trade job..

Yes, I actually got all the permits about 5 years ago, but then economy crashed and there was no way our current house would sell and I had 2 kids in day care (2k a month).. So we held off. I'll have to get new permits again as they expriew.

 

[Sorbate]

Its sick what renovation costs are now.

All I did was put 6 shelves in my wifes closet and bought a new closet bifold door. $700 with tax. I couldn’t believe it when my wife told me, I had to check the bill to make sure they didn’t screw up.

 

[animal-inside]

Its sick what renovation costs are now.

All I did was put 6 shelves in my wifes closet and bought a new closet bifold door. $700 with tax. I couldn’t believe it when my wife told me, I had to check the bill to make sure they didn’t screw up.

Yup.... We haven't reno'd anything since 2020 because of it..

I'm actually cutting boards with my chainsaw mill to make a new coffee table and build a hunting blind to hunt with my son in novermber.. Fuck buying lumber, cant afford it.