A Down Payment Is Not An Investment
Candice wants to know where the best place is to put her money that she's saving to buy a house. Dave explains.
QUESTION: Candice on Twitter wants to know where the best place is to put her money that she’s saving to buy a house. Dave explains.
ANSWER: The problem is you’re not really investing it unless it’s going to be five years before you buy, and I doubt it will be. You’re just kind of parking the money. You’re not going to make any money on your money. It’s going to just sit there, and it’s just disgusting. But that way, you’re not going to lose any money. If I were saving for a house short term, I wouldn’t invest. I would save it in a money market account. You’re going to make 1% on your money or something like that. Basically, the money in the account is money you put in there. You’re not going to make much money on your money in the short term, especially in a low-interest-rate environment like we’re in now.