Which would you choose?

[IndecisionnCentral]

Dh and I can't agree which is the better option. AIBU #1 YANBU #2

Currently
Income from investments £1500pcm
Savings £600k

Option 1: buy nice house in main town/city for 600k, both get part time jobs as investment income allows flexibility & then have a good work/life balance with plenty of time for hobbies and holidays

Option 2: buy a rural smallholding for 600k, start a business like dog boarding/airbnb for income, definitely more of a change in lifestyle choice

Pros and cons to both and very privileged for this dilemma, genuinely would appreciate others experiences and advice. Am going around in circles.

1

Option 2

Rural

Option 1 as option 2 is a risk and seems a bit pie in the sky. If it’s not successful what would you do for money. Option 1 offers you that important work/life balance.

Option one, but not buying a house to the full 600k value. House circa 450k, savings 150k then income from investments + jobs. Thinking about income from investments being potentially at risk (depending on the investment) and keeping a healthy cash buffer.

Well, does city life or rural living appeal more? The choice would be very clear for me, because I don't want to be in a city. If one of the choices were to be taken off the table, which would would you feel most disappointed about?

Would possible future children feature in the equation?

How old are you?

Definitely option 1. You can spend plenty of time in rural locations with that, without being tied to running a business and everything that comes with it.

Would possible future children feature in the equation?

Sadly not

How old are you?

38 & 45

Two vastly different lifestyles and a very personal choice - no-one else can answer this for you.

You must have a preference between a job that just pays your way and allows you to enjoy city life with its bars, restaurants, culture whenever you want with no/little stress and a whole new life, starting a business and rural living and its very different social activities.

I would say that you should only think of starting a business if it’s something that you’re very passionate about and don’t mind giving up a large proportion of your time for for at least the first two years. It’s very stressful and you’ll only survive if you love what you do.

Lots of research needed for a business venture - would an AirBnB bring in enough money for you to live off? Dog boarding - you’d need to find a dog boarding place that was being sold, what’s the business plan, how much income does it bring in, do you mind the sound of dogs barking constantly?

1 - 100%

2 would be bloody hard work with little flexibility and presumably you've worked plenty hard enough to be in your current position. Go for the part time work + holidays.

I think with a potential long lasting and far-reaching recession looming, option 1.

I’ve said option 2 because there’s potential for your investment income to fluctuate or go down, and it gives you an additional income. It would have to be something I enjoyed though. I’d open a cat hotel.

This is really helpful, having a gut-feeling reaction to replies which is surprisingly revealing! Thank you.

Having been self employed with a business based on premises - I would personally go for option one.

A business can take over your life in ways you don't expect.

Option 2 sounds the preferred option for sure, but I feel like option 1 is more realistic and more "doable" for everyday ease.

I would look for wfh options in a rural setting.

Have then to fall back on if the self employment/passive income doesn't work out.

Dog boarding and airbnb will not give you any work life balance. You’ll be working evenings and weekends and getting up during the night dealing with dogs - and the insurance / risk for liability would be a nightmare.

Equally, airbnb sounds like a can of worms. People in your private space - you’ll be busiest during holidays and weekends.

You don’t need the hassle.

Can you not do option 2 but get a job there? Rural but commutable a couple of times a week into a city?

Option 1.
I know two sets of people who invested everything in their own businesses and ended up losing it all and it cost one set of them their marriage.

Is your investment income index linked ? £1500 per month is a decent amount but doesn't allow for a luxurious lifestyle-particularly as it will go down in value in real terms if not index linked.

I'd go for Option 1 but also try to find something I was passionate about - be that the job I took or doing some volunteering on top.

This. Option 2 sounds a bit bizarre for people who presumably have no experience in it. It all sounds very lovely in theory, but it’s a 24/7 job with never ending responsibility. And a business that goes tits up very easily has the power to drag you down with it.

I really wouldn't do option two. What jobs do you do now? Can you do them part time?

How secure are those investments? Are they likely to go down as well as up? I am assuming so.

1 definitely

Jobs wise - we both work part time now in low skilled industries, DH couldn't retrain but I definitely could; if we didn't do option #2 then I would use the time/freedom to choose a qualification/career.

Investment income is very secure and should only increase slightly year on year.

No 1 is definitely more flexible. You can still do dog walking or Airbnb or all sorts if you are based in a town. But a smallholding is endless work and no summer holidays. You have to be passionate about the land to make it work.

Go for the easy life in a nice town with scope to train ins new role or travel or be part of the community