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]

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]

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]

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.