Invest in shares for property?

Hi everyone long time lurker here and am stepping out of my shell to ask a question. I am intending to join the property market and go for my first investment property soon. I have $50k savings atm although I am still slightly short of the deposit I need to aquire this property. My expenses are low as I still live with parents and I budget accordingly currently having no debt owing. My question is I am considering investing a large sum of this in income producing/growth shares with 5% yield+ to aquire cash faster alongside my job as opposed to just leaving savings in a measly savings account earning less than 2% interest. Also may consider ETF's if they offer better return. Would this be a viable strategy or would anyone else like to please share how they would save for a deposit as quick as possible without having any other investments with equity to access? Thank you for the support

 

All strategies are viable. Whether they work not is another matter.

I do hope you're not thinking of placing in the share markets money you wish to use for a housing deposit in the near future.

Tell me, how will you feel if you suddenly see, say, 10% or more of that capital disappear either over night or over a period of weeks or months? Will you then have made a wise decision?

Conversely it may increase by 10% or more over night or over a period of weeks or months.

Go for it if you wish. Your money, your decision and any outcome will be yours to own.

 

Near future no, but you seemed to have answered my question in relation to that manner. Saving cash in savings accounts would be ideal for a near future purpose. Long term wise I understand changes in the market will influence my overall capital invested but I had the intention of the divdend yield/growth shares producing more income than a savings account can generate say with 3-5 years.

 

Personally I would not do this. IMO you are wanting to engage in a higher risk strategy to get a small amount of money you need to make it enough to purchase a home. The risk is too high to me. If it goes well then sure its good. If it doesn't, then say goodbye to a chunk of your 50k and will probably take you a very long time to save it back. I would just keep saving until you have enough. That's my take.

 

No worries thank you for the feedback

 

Agreed with everyone else’s sentiments.

The share market whilst a great investment vehicle has pros and cons.

Liquidity
Dividends
Low holding costs
Potential growth (rapid)
Etc.

Problems apart from the obvious:
Psychological mind f* when the share prices tank.
Humans are more inclined to feel the emotional toll of losses far more than gains.
End result? You end up holding losers longer than you should and end up ‘anchoring’ on your entry price.

I suggest you read up a lot of shares as that’s a whole new investing world on its own.

Good to diversify but I wouldn’t do that for the purchase of a home. Invest in shares if it’s part of a long term (10-20 years +) to have an income stream and to benefit from compound interest