Smaller property and retire early or dream house?

[Ni9ht0wl]

Total first world problems but I'm in the really fortunate position of having enough money following the sale of my property to potentially retire early. I'm 45.

My husband and I have 2 options. 1 buy a fully finished large house similar in size to the one we sold (had to sell due to relocation) to live mortgage free with our 2 kids but still work to pay for bills, holidays etc

Or buy a much smaller albeit still 4 bed detached doer upper to renovate and be able to retire early and spend more time with our kids.

I'm inclined currently to do the latter but wonder if anyone who has downsized in this position has regretted it?

Our kids are 14 and 11 so will still be at home for a while.

How you use your house also dictates what would make you happy or miserable. I couldn’t downsize yet (a couple of years older than you) as I like to entertain and I have a library that I am not emotionally ready to give up.

I’ve chosen to carry on working when I could retire but downsized my job a bit and income is going to ensure DD is debt free after Uni. I will review again once she is out the other side of studies. We only have the one DD but thinking is she moves into our house and we move to something smaller.

Would having time to volunteer help you integrate into your new location etc?

If you bought the large house could it have an annex that could be rented out for the moment (but then flexible if you had young adults who wanted semi independent or carers living in, or even as a friend did, they moved to Annexe as got older and gave up house to child). Or or a separate buy-to-let.

good luck with the move wherever you decide

Being mortgage free at 45 is great. Do you have a million+pension now? Do you have sufficient savings/investments outside of any private pension which you can't access until at least 57 if you really want to completely retire now?

You are still tied to school holidays for another 7 yrs so I would choose to continue to work/pump more money into pensions/investments for at least another 7/8 yrs. So..either house. Renovations will cost more than you think - just double your budget.

I don't dream of houses and like work so I would downsize (if I could be bothered) and keep the job.
Not helpful!

Depends on location. Buy the one that gives the most independent movement for the kids?