Unlike the Help to Buy, the Lifetime ISA has a stocks and shares flavour.
Stock markets are volatile so if you think you’ll buy that flat in the next three years, then the stock market is probably not your best bet. But if this is at least a 5 year saving plan, then it’s worth considering.
In 2017, for example, the FTSE100 went up by about 12%. Over the last 5 years it’s gone up by about 15%. It is volatile and the main thing is to avoid being a forced seller into a slump.
This chart shows you just how much you stand to make by taking advantage of the maximum Lifetime ISA allowance. Over 32 years (assuming you start at 18 and continue to save until you are 50) you could potentially squirrel away £128,000. The Government will top up £32,000 in bonus contributions, and if we assume an average of 5% growth (not guaranteed folks so example only) you stand to earn an additional £235,319.