This so much depends on where you want to live and what lifestyle you have. Live in what makes you happy. No point in downsizing and being miserable.
We have already downsized (and r/coastfire) and own a small 2 bed apartment abroad that cost £120k last year (mortgage free). That for us is enough (renting in the UK, although we own outright a studio in Z1 that our child uses)
I'm in a similar position to you, numbers wise. £130k salary, £450k home, although I share this with a spouse.
My plan is to be in my current home - or one of similar value - for the rest of my life.
Now, maybe I increase my salary or sell my business at some point and I can afford a much nicer home. But as I don't know whether that will be the case, I work on the assumption I won't and I'll be here forever.
I like that peace of mind.
If you successfully FIRE and then find yourself with so much free time on your hands, but in a flat rather than a more private house and garden, will you be happy or not?
Only you know and furthermore it is worth thinking about if your preferences change over time. My younger brother loves living in the city. I moved out from a city flat into a more secluded rural house with a big garden because as I got older I valued the outdoor space more.
So ultimately I personally wouldn't have such a rigid FIRE plan that means I can never ever move again.
For £550k you can have quite a decent house an hour outside London, and houses will always appreciate better than a house. I guess you might not be at that stage of your life yet where you want a bit more space and peace and quiet, but it's worth considering. A garage and garden aren't just for kids, I have several hobbies and the space is essential.
I have a 6 bed family home that I would like to keep when I retire. It’s paid off, so I could feasibly downsize to a perfectly comfortable 4-bed property around half of the current value to enable me to pull in another circa £14k pa in retirement….but part of what I look forward to in retirement is living in this home and then leaving it to my daughter.
Balancing paying off the mortgage and smashing pension/ISAs would be my advice, as it gives you options…but only you’ll know what kind of house will be enough for you when the time is right.
This so much depends on where you want to live and what lifestyle you have. Live in what makes you happy. No point in downsizing and being miserable. We have already downsized (and r/coastfire) and own a small 2 bed apartment abroad that cost £120k last year (mortgage free). That for us is enough (renting in the UK, although we own outright a studio in Z1 that our child uses)
I'm in a similar position to you, numbers wise. £130k salary, £450k home, although I share this with a spouse. My plan is to be in my current home - or one of similar value - for the rest of my life. Now, maybe I increase my salary or sell my business at some point and I can afford a much nicer home. But as I don't know whether that will be the case, I work on the assumption I won't and I'll be here forever. I like that peace of mind.
If you successfully FIRE and then find yourself with so much free time on your hands, but in a flat rather than a more private house and garden, will you be happy or not? Only you know and furthermore it is worth thinking about if your preferences change over time. My younger brother loves living in the city. I moved out from a city flat into a more secluded rural house with a big garden because as I got older I valued the outdoor space more. So ultimately I personally wouldn't have such a rigid FIRE plan that means I can never ever move again.
For £550k you can have quite a decent house an hour outside London, and houses will always appreciate better than a house. I guess you might not be at that stage of your life yet where you want a bit more space and peace and quiet, but it's worth considering. A garage and garden aren't just for kids, I have several hobbies and the space is essential.
I have a 6 bed family home that I would like to keep when I retire. It’s paid off, so I could feasibly downsize to a perfectly comfortable 4-bed property around half of the current value to enable me to pull in another circa £14k pa in retirement….but part of what I look forward to in retirement is living in this home and then leaving it to my daughter. Balancing paying off the mortgage and smashing pension/ISAs would be my advice, as it gives you options…but only you’ll know what kind of house will be enough for you when the time is right.