Early Retirement - (nearly) one year on

Thorsson

uk1 wrote: »

https://www.economicshelp.org/blog/5568/housing/uk-house-price-affordability/

The first graph shows the cost of buying a house. That does look frightening.

Look at the mortgage cost as a % of salary and you have a very different graph. My son was offered 1.64%. I recall paying over 15% for a while and it was never below 7% until the very end. As they say, "There's lies, damn lies - and statistics". Unfortunately it only goes back to 1988.

michaels

MallyGirl wrote: »

whereas locals near me have:
https://www.rightmove.co.uk/property-for-sale/property-67205110.html
with mould on the walls for £125k

or space in someone's loft for £140k:
https://www.rightmove.co.uk/property-for-sale/property-77187293.html

DD wants to go to Liverpool uni so I expect she will never come home again and Runcorn could be just the place.

When I was FTB 19 years ago the mold on the walls would have been a buy signal as buying a doer upper means more value for money and more chance of capital appreciation. And when one is young one has the energy to do DIY after work and at the weekends. If you want to move into a show home with ensuites throughout then don't complain that it is expensive.

caveman38

I was bought up in Leyton, East London. When I was about to be married, I bought a place in SE suburbs although I could have afforded as a first time buyer something like:


https://www.rightmove.co.uk/property-for-sale/property-58478814.html


If I was still there today, my boys would need to be looking at properties like


https://www.rightmove.co.uk/property-for-sale/property-78660113.html


to stay in the same area. I can tell you Leyton is no trendy area and prices there are a reflection of the whole of the London postal district.
Who wouldn't want to be the son or daughter of parents living in the north.

Thorsson

My first house was in Tooting. It's now worth more than my current house, despite being smaller and a terrace (and not the nicest area of London), because I moved out of London 20 odd years ago. London property prices are frightening today, due to successive governments ignoring the issue.

This is an area where the young are considerably worse off - they're having to move out of London and commute if they want to continue to work in London, but buy a house.

MallyGirl

michaels wrote: »

When I was FTB 19 years ago the mold on the walls would have been a buy signal as buying a doer upper means more value for money and more chance of capital appreciation. And when one is young one has the energy to do DIY after work and at the weekends.

True. Our last house - first together as a couple - was described by a good friend as 'a hard hat zone' but not to our faces. Even the solicitor acting for us asked if we were sure! It took 8 years and a lot of work but we bought for £165k and sold for £418k.

DT2001

michaels wrote: »

Not sure if this is the thread for it but I was wondering how age of having children has impacted on putative early retirement dates. I didn't think I was a particularly old dad compared to most these days but when my youngest is 21 I will be 59. Do many manage to retire before their kids have been through uni?/QUOTE]

I think having our children later, youngest will be 21 in 10 years time, has allowed us to aim for earlier retirement. OH able to retire in 18 months at 55. We built up a very solid financial base before children. I’m a FT house husband at 58. We have got 2 through driving lessons and luckily for them help from grandparent to reduce burden of Uni if that is their chosen option.

crv1963

shinytop wrote: »

I can confirm they do. Don't forget car insurance too :eek: I think two factors that are big influences in when you can retire are (1) when you start your family and mortgage and (2) whether you get divorced. It's going to be a lot harder being retired with a big mortgage and/or dependent kids.

Personally, I started (1) age 26 and (2) hasn't happened (so far )

I agree with your thoughts! Having been divorced and had a pension sharing order, then marrying again I (we) have taken a hit on our pension and have a reasonably large (to us) mortgage to pay down.

So yes 1 and 2 have an impact on retirement dates. For us it has pushed retirement from 55 towards 60 but hoping that we'll bail out by 58.

Of course health also can be a factor, had I not had a period of recovery from ill health I'm unlikely to have been able to read so many threads properly and form our retirement plans in detail. So every cloud has a silver lining!

happyandcontented

uk1 wrote: »

Unless you are contorting my post into meaning that I suggested it was tougher for every one of our kids then your view is bewildering.

When we were younger less than 10% of our kids earned degrees and now there are more than 50% with degrees competing with each other for pretty much the same number oif professional careers. In order to make this happen we converted all Polytechnics to Universities. When Universities became money making businesses they produced courses they made students into customers and to achieve revenue success produced courses that were attractive to kids but that were unlikely to result in work. How many dancers and media graduates do we need? We created that situation and illusion for them and they did not.

Also, some of us were also lucky enough to be starting our work in a time of full emplyment and careers without zero hour contracts. We "worked our way up". We also created a DWP that enjoy dispensing sanctions to our kids.

These factors aren't a matter of their own lack of planning or foresight but a background our generation created for them in the mistaken belief that by creating the illusion that no one failed and everyone was clever, we were doing them and their "self-esteem" a favour.

My point is that I would not see my kids either homeless or without food and I would have to feel enormously agrieved by their behaviour to not support them as you seem to suggest you would do.

I cannot see why you cannot agree with the generalisation that we have basically made things tougher for our kids.:)

I just disagree that life is tougher in general for kids today. I think that the opportunities are out there if they are willing to find them. Another poster sums up my views succinctly. All of those I know in their 20's and 30's have bought houses on reasonable incomes without an issue. Two of my sons bought on their own with just their incomes without a problem. I can only speak about those I know, just as you can.

As for not supporting my kids, I don't know how you have inferred that. We have always been behind them every step of the way and supported them both financially and emotionally when required.

What we have done is talk to them and steer them towards good choices rather than 'airy fairy' choices which would not have left them in an optimum position to take advantage of the opportunities that came their way. It is surprising how much 'luck' you have when you work hard and make reasoned choices with your eyes on the future.

uk1

happyandcontented wrote: »

I just disagree that life is tougher in general for kids today. I think that the opportunities are out there if they are willing to find them. Another poster sums up my views succinctly. All of those I know in their 20's and 30's have bought houses on reasonable incomes without an issue. Two of my sons bought on their own with just their incomes without a problem. I can only speak about those I know, just as you can.

As for not supporting my kids, I don't know how you have inferred that. We have always been behind them every step of the way and supported them both financially and emotionally when required.

What we have done is talk to them and steer them towards good choices rather than 'airy fairy' choices which would not have left them in an optimum position to take advantage of the opportunities that came their way. It is surprising how much 'luck' you have when you work hard and make reasoned choices with your eyes on the future.

If you don’t mind me saying so, the tone of your earlier note gave a rather binary harder and different impression than this one. You used phrases like “we made it clear to them” ie you set a mandate, rather than the more conciliatory tone you infer here ie “talk to them” That is why I inferred as I did. I agree with all you say in this version

It is ironic that on this board and on this thread we haven’t even touched on how different the retirements of this generation will be very different compared to ours. We are able to retire and it is my sense that most of my grandchildren will not have a completely non-working retirement as we know it ie without mandatory work. This alongside the more difficult environment to own a home and build up equity will make their longer later life very much harder.

Thorsson

Sorry for making so many posts, but there's another point I'd like to pick up on - BONAG. Someone has already covered this in passing, but I probably have a different take on it! When "Nan & Grandad" can pick up the slack, then maybe it's easier to take early retirement. My wife's best friend and her husband were in very similar circumstances to us, probably similar total income and both having two kids; but they had big gifts from their parents - and so did their kids. We've not had a penny - me because my parents divorced and re-married younger partners and my wife simply because they don't have much money left after the slings and arrows of fortune.

So here's another question. How many of those retiring early have had substantial financial help (I'm not going to attempt to define substantial, because it depends when it happened) from their parents post-education?