23 and a 31k grad salary. My retirement plan.

NoMore

Its the link to your coffee thats probably more of a problem

AnotherJoe

In addition to the advice about pensions which I'd concur with (eg not just as ISAs) , I'd suggest you invest some time reading FIRE blogs. People like The Escape Artist and Mr Money Mustache, and there are plenty of others.

MarcoM

very interesting thread and the op sounds like a vefy successful person, well done.

to the op, do you have a figure in mind you are aiming to save by age 40?

Jonathon365

I'm unsure of an exact amount, but probably enough to pay myself a £30k tax free salary within the 4% withdrawal limit.

I don't see any reason why I'd close down my businesses either, so potentially less and may leave my job sooner.

Jonathon365

Any thoughts on the AirBnB property? seems like a good idea when using an AirBnB management company. Heard any horror stories?

DrEskimo

Jonathon365 wrote: »

Great question on owning my own home to live in and it's something i'd be interested in your input on.

My thought process is that I need to be based in London for work right now and can't afford a house in the Capital that i'd actually want to live in. If I did buy here, it would likely be in an outer zone, in an area I don't like and significantly push up my commuting costs (I currently cycle to work to save).

Second, I aim to work overseas within the next 18 months and therefore don't want the hassle, especially when I'm already looking to buy an investment property up north.

So in summary, I'm happy to rent in London for the short term and at the same time get on the property ladder up north. Do you think this is sensible?

Thanks!

Ah OK. So when you get back from overseas, do you plan on still working in London, or moving back up North?

Do you have funds on top of the £40k you will be using for the investment property to use as a deposit for your own home, or do you plan to save that up again? Will income-expenses and investment allow you do to this in a reasonable time (not forgetting that house prices will continue to rise...)?

I don't know much about the AirBnB approach, but my Dad rents out two properties and it's a lot of work. I would check how realistic it is to do, especially while living abroad....

I can only speak from experience, but I work in London and live in the outer counties (Hertfordshire), and while the commute isn't exactly the highlight (although thankfully I work from home 2 days a week), buying a property with my GF at 25 was the single best decision I've ever made....:)

Jonathon365

In an ideal world I'd like to head up North, but may have to come back to London for a job.

No I don't have funds above the £40k for the investment property, so would have to save up again. I'm hoping as my businesses grow I'll be able to take money out to buy a property to live in, albeit with incurring the associated taxes.

Thanks for the AirBnB advice, I realise it's a lot of work but with the management company being on the ground sorting any issues and I'll be just an e-mail away I'm hoping nothing too serious.