Would It Be Worth Investing 10k in Stocks When You Are Planning On Buying a House in 5 Years?
It is possible to invest in stocks, even when you're planning on buying a house. This post will give you more of an idea about how you can do so.
Published April 20, 2021.
Without being blatantly obvious with my answer, I'd really have to say that it depends. There are a lot of factors that determine how to know whether you should buy, sell, or hold stocks.
Firstly, it depends on how much you're regularly earning and how much your house will be worth. If you're taking a loan for your house without this 10k you plan on investing, make sure the loan is something you can afford to pay in the following 5-10 years. The best solution for this is having at least 1 stable source of income.
If I could give you a better answer, it would be to invest the 10K in stocks but to be safe, make sure you have other income sources growing in the background. When buying stocks with this 10K, make sure you diversify a lot and invest in stocks that pay solid dividends.
Still, I wouldn't advise you to compromise the budget you're planning for your house, but instead, invest an amount that wouldn't adversely affect the chance of you buying a home in 5 years. If you think that 10K is too much and would mean that you have to delay your big purchase, you should consider lowering the amount you plan on investing and instead focus on getting a house first.