Monday, 08 November 2021 16:42

Where to keep your savings to buy a house?

Written by Evelyn Alas

Saving to buy a home can take several years. Even if your plan is to take out a mortgage, these loans require you to make a down payment, so the process of saving is irreplaceable. In this note we tell you where you can keep your savings for this purpose.

First, you might be tempted to invest your money in riskier options, such as stocks or cryptocurrencies. However, you should know that equity investments have the possibility of going down in value at any time. It's a risk you can't (or shouldn't) take if you'll need the money in the short term.

The exception is if you will keep these funds for more than five years, letting them grow. The reason is that this span gives your investments a chance to recover from debt without having to take losses by withdrawing your money early.

The best thing to do is to have your money to buy a house in the bank or in a fixed income investment, such as Cetes or financial companies, where at the end of a determined and predictable term, you get consistent but predictable returns.

This allows you to invest safely without worrying about fluctuations in the markets, and you will have the expectation of how much and on what date you will have your savings plus your returns.