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Original poster

Is this wealth or comfortable?

91 replies

Tuue · 07/07/2022 18:07

Absolutely not me, sadly, as I’m neither wealthy nor comfortable!! I’d like to be…

is this simply comfortable or wealthy? Where is the line?

three buy to let’s, circa 500k equity across them
mortgagr free home of 600k
yearly income from investments of 25k post tax (out of a 500k fund, at present)

interested as this came up recently and I was very surprised at the different views in my close friend group! I feel even poorer these days !

OP posts:
ThirtyThreeTrees · 07/07/2022 18:47

Doing very well and better than most but to me wealthy is having no debt and more money than you would ever spend in your lifetime.

TheThreadisMildlyAmusing · 07/07/2022 18:50

Wealthy.

ShahRukhKhan · 07/07/2022 18:53

A child-free couple living on 54K is comfortable IMO. As in we can buy all of what we need and a lot of what we want, without really noticing the expenditure including bi-annual longhaul trips. So I suppose it depends on your definition of comfortable.

Happyhappyday · 07/07/2022 18:54

Good assets but I wouldn’t say wealthy. Middling income. We have similar equity in our home but another £100k in liquid assets + pensions and an income of £200k. In our area we are very comfortable but absolutely not wealthy.

TedMullins · 07/07/2022 18:55

Incredibly wealthy if they own all that even if the income they draw from it isn't masses.

BoJoGoGo · 07/07/2022 18:59

Do they have a pension pot as well?

VioletInsolence · 07/07/2022 19:00

It’s very comfortable because although they don’t have a huge income, they don’t have a mortgage and they’ve got complete peace of mind and don’t have to work.

RoseGardenSummer · 07/07/2022 19:04

I'd call them comfortable, certainly not wealthy.

Jmaho · 07/07/2022 19:05

This place is bonkers. £3500 monthly net income with no mortgage to pay. £1.1 million in equity across 4 properties and another £500k in cash investments.
Not comfortable? Mind blown

Zeus44 · 07/07/2022 19:13

Not sure I’d call that comfortable or wealthy. The assets deliver a return but it’s not leaving much for a life for two people once you take away bills and food.

I know people with a lot more BTLs and mortgage free and they still work because they have to as they have children!

Bunnycat101 · 07/07/2022 19:14

Presumably though they could get an actual job. I’d say they’re wealthy if they have that much equity and don’t need to work. The actual take home isn’t particularly wealthy but the fact that they don’t need to work tips it into a different category for me.

User48751490 · 07/07/2022 19:15

Wealthy.

StarWarsisthebest · 07/07/2022 19:16

Of course it’s bl**y wealth, please get real! Heaven forbid if they have to sell their 600k home and move to social housing in Thamesmead.

User48751490 · 07/07/2022 19:17

To be mortgage free many aspire to. It's rare to be in this position. Definitely wealthy.

Wombat27A · 07/07/2022 19:21

Thing is with wealth is that if it's tied up, then you can be short of actual cash. I am a landlord, last year I had to upgrade various places & so had a very negative cashflow. As in none, minus 5 figures as you can't expect people to pay good money for poor accommodation...so family muttering about "rich relations" was unhelpful.

I'd say your example is wealthy but you never know the ins & outs unless you get to see all of their financial affairs.

ChipsRoastOrBoiled · 07/07/2022 19:22

To me, on my disability benefits, that is fabulously wealthy, no matter if it is in cash or bricks & mortar.

easyday · 07/07/2022 19:25

Comfortable in day to day living. A material wealth of £1.1m isn't huge.
£42k/year is fine for two without a mortgage, but are you sure about the rental income? I get £9,600 a year for one of mine but have to pay £2,400 service charge plus any repairs (and tax on top) . Another I get £2000/month but pay £2000 service plus 10% fee to agents. Then repairs probably another £1000. So for the latter what looks like £24,000 is actually less than £15k in my bank.
It's relative anyway. Plenty on here will say wealthy. I say comfortable. Wealthy to me would be over £100k after tax annually, no mortgage, no school fees, and at least £5m in assets.

Moonchair1 · 07/07/2022 19:27

£3500 per month is not 25k a year
£3500 pm is about 42k a year

LeoOliver · 07/07/2022 19:33

Comfortable.

BarbaraofSeville · 07/07/2022 19:40

Moonchair1 · 07/07/2022 19:27

£3500 per month is not 25k a year
£3500 pm is about 42k a year

£3500 pm is quite a lot more than £42k pa. I earn only slightly less than that and my take home is under £2500.

The people in the example sound quite wealthy. They have a lot of assets and a passive income

friendlycat · 07/07/2022 19:43

They certainly aren't getting a taxed income of £25k from investments of £500k at the moment. That's one thing for sure!

Replacethis · 07/07/2022 19:44

4 houses! Only an embarrassing fool would say this wasn't wealth.

TooManyPJs · 07/07/2022 19:46

I'm not sure that's either, £25k income isn't much to live on.

TooManyPJs · 07/07/2022 19:47

Tuue · 07/07/2022 18:39

There’s other income streams such but per month after tax around 3500

Oh well that's a bit different. I'd say comfortable.

SavingsThreads · 07/07/2022 19:54

Zeus44 · 07/07/2022 19:13

Not sure I’d call that comfortable or wealthy. The assets deliver a return but it’s not leaving much for a life for two people once you take away bills and food.

I know people with a lot more BTLs and mortgage free and they still work because they have to as they have children!

They're millionaires!