Where to put 350k for a year that is earmarked for a house renovation

[lostinneverland]

I am currently contemplating doing a house renovation that will be in the ballpark of 200k-350k. I wanted to take a pulse of the forum to see opinions on where they would put that money for one year and why. Cheers

[mrfeh]

High yield savings.

[Aerides]

Ally no-penalty 11 month CD.

[mrfeh]

Quote:

Originally Posted by Aerides Ally no-penalty 11 month CD.

You can get the same interest rate from their savings account, so why bother?

[SecondCor521]

I'd personally consider putting it into the renovation now.

There's an argument to be made that renovations will be 10% or more more expensive a year from now, so buying the renovation now could be viewed as a 10% return.

[SnowballCamper]

Quote:

Originally Posted by SecondCor521 I'd personally consider putting it into the renovation now.

Yes. If it's possible to buy and store materials on the site, for no additional cost, then I'd do that. I think most supplies will be significantly more expensive in a year, but I think lumber might be the most volatile (possibly reverting to a mean).

[OldShooter]

Quote:

Originally Posted by SecondCor521 I'd personally consider putting it into the renovation now. There's an argument to be made that renovations will be 10% or more more expensive a year from now, so buying the renovation now could be viewed as a 10% return.

Excellent point.

I was once peripherally involved with a mission organization that was funding a construction project in Argentina. Argentinians are among the world's most experienced people in dealing with inflation. Every time any money went down there from the nonprofit, within a day or two it was used to purchase building materials. Cash was a hot potato.