Russell,

Nice to see you thinking it out before buying. I wish I'd been that smart 10 years ago, when I was your age.

Put me down as another in the 'buy property' camp. Even if you are still living with your parents now, it would be a smart investment to buy a rental property.

My father pulled most of his money out of the stock market when he retired, and bought a bunch of cheap terraced homes in Middlesborough, somewhat north of where you are. Fully renovated and ready for student housing, he has maybe ₤20k in each one. He has a contract with the local University which essentially makes them available as University housing. He gets slightly lower rents than the going rate, but is guaranteed occupancy, and the tenants are accountable not just to him, but also to the university. So far, he's averaging 20-23% return on each property, annually.

In addition, he bought when the market in that part of the country was at rock bottom. Now, the Teesside area is seeing a nice little urban renaissance, and the properties have certainly doubled in value, if not more.

Do this sort of thing for a few years with your nest egg, and you will be absolutely amazed at how fast it grows.