£3k to invest today in an ISA? I’d buy these pandemic-proof FTSE 100 stocks

first_img Image source: Getty Images Harvey Jones | Tuesday, 6th October, 2020 “This Stock Could Be Like Buying Amazon in 1997” £3k to invest today in an ISA? I’d buy these pandemic-proof FTSE 100 stocks Enter Your Email Address Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this.center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! If I had £3,000 to invest today, I’d be looking for FTSE 100 stocks that should hold steady even if the pandemic drags on. I think the housebuilding sector offers that opportunity, because it’s effectively being underpinned by the government.Yesterday, prime minister Boris Johnson announced new measures to help first-time buyers onto the property ladder, creating ‘Generation Buy’ by offering young people low-deposit mortgages. The aim is to fix the problem of unaffordable deposits, where buyers cannot scrape together the necessary 15% deposit most lenders demand.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…It will help fix FTSE 100 housebuilding stocks too. They’ve all climbed today as a result, and this isn’t the only state aid ministers are offering.These FTSE 100 stocks are underpinnedSometimes it feels like the government’s number-one priority is to rush to the rescue of the housing market. Chancellor Rishi Sunak’s stamp duty holiday is driving activity, with Nationwide reporting that house prices climbed 5% in the year to September. That’s the fastest growth in four years, despite today’s massive health, jobs, and economic crisis.The Help to Buy scheme is also propping up demand for new-build properties, and although that will be scaled back from next spring, it may be extended. Then there’s the Lifetime ISA, which gives first-time buyers a 25% bonus, worth up to £1,000 a year, when saving towards a deposit. Throw in all-time low interest rates, and the total stimulus is colossal.The cumulative effect is to drive UK house prices to a record high of £226,129, Nationwide figures show. Which is great news for FTSE 100 stocks exposed to the property market, primarily housebuilders of course.Yesterday, the UK’s biggest housebuilder Barratt Developments saw its share price jump 4.13%. It’s now up more than 27% in the last six months. Similarly, FTSE 100 stock Vistry Group jumped 3.78% yesterday, and trades 14% higher than six months ago. Persimmon jumped 2.41% and is now up an astonishing 56% in the last six months.Berkeley Group Holdings saw a smaller gain of 1.33% yesterday but is, nonetheless, up almost 30% over six months. Taylor Wimpey is the sluggard among these FTSE 100 stocks, up ‘just’ 7% in six months.These FTSE 100 stocks were on the front line of the Brexit shock, and the same happened when coronavirus struck. The housing market effectively locked down. But that seems to have created pent-up demand, rather than destroying it.Build your wealth in an ISAGiven the shortage of supply and the high demand for property, it will take major upheaval for prices to crash. Quite frankly, the government isn’t going to allow it.Despite this, the housebuilders still look relatively cheap. Barratt is trading at 12.46 times earnings, Persimmon at 9.51 times, Vistry at 5.73 times, Berkeley 13.41, and Taylor Wimpey at just 5.38 times. Most have been cutting dividends but, hopefully, they will be restored once the worst of Covid is behind us.In the meantime, demand for property looks set to remain healthy, as do the long-term prospects for housebuilders. They’re not as cheap as they were during the stock market crash in March, but these government-pampered FTSE 100 stocks still look tempting today. If I was putting £3k, or any other sum, into a tax-free Stocks and Shares ISA, I’d check them out. See all posts by Harvey Joneslast_img

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