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Potential buyers arrive at an open house in the Strathcona neighbourhood of Vancouver on April 6, 2014.
Potential buyers arrive at an open house in the Strathcona neighbourhood of Vancouver on April 6, 2014.
(Rafal Gerszak for The Globe and Mail)

Rob Carrick's ideal portfolio for first-time home buyers

Here’s a model portfolio for people investing money they’ll use to buy a house in the next few years:

Stocks: 0 per cent
Bonds: 0 per cent
Cash: 100 per cent

You can’t afford to take any risks with money you’ll need in the near to medium term for a major expense like buying a home. Save it, don’t invest it. Use a high interest savings account that is covered by Canada Deposit Insurance Corp. or credit union deposit insurance, and forget about stocks and bonds. You’ll make only a token rate of return on this money, but the risk of loss is pretty much nil.