Is this wealth or comfortable?

[Tuue]

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 !

Asset rich and cash poor. Not a huge income for a couple with a family but certainly manageable with suitable financial management and budgeting.
I suppose if they don't work then commuting/transport costs would be minimal.

Neither. Far from wealthy! 2 adults living off 25k PA is far from comfortable.

Wouldn't be enough income for us to be comfortable on. Other people live differently though.

That is a long long way from wealthy.

They may regard themselves as comfortable depending on their chosen lifestyles, but plenty of people would find that income level wouldn't cover what they perceived to be a comfortable lifestyle.

Obviously wealthy. Just a £600k mortgage free home means wealthy, IMO, without even considering the rest. They have a £600k asset.

They’re receiving £25k per annum without having to do anything for it at all. That’s not the same as working for £25k which would not be wealthy. In that situation I could get a job to pay the bills (which doesn’t even include housing costs because of mortgage free house) and still have £25k completely disposable income.

They do but it’s not liquid, they are living on what is below min wage. The fact they own property doesn’t change that. If they liquidised their assets, kept the house and lived off the interest they’d still not be much better off.

it’s not wealthy. On a day to day basis they live no better than a min wage person in their mums house.

Yes because they don’t work. One or both could get jobs and have this as extra. They’re choosing this level of income.

25k is the amount their personal allowance would bring without any tax involved.

How did they become mortgage free with so many properties but dont work.

If that is retirement income I think they are wealthy, although asset rich, cash poor. If they are young I need more info to decide.

Not really even comfortable. Asset rich but cash poor.

The ons puts people with 1.4m on the 90th centile (they measure wealth as including houses, pensions, savings and stuff like cars and goods but minus debts) so i feel they have hit the top 10% on this measure. Even just their liquid assets stick them over the 60 (which includes everyone elses house)

But their income puts them in the bottom third.

The assets are rhe assets, they are not liquid. So right now it’s one hundred percent the same as saying I earn 12k a year and live with my parents, that’s their life. Earning 12k a year each and living rent free.but paying all bills from that.

it is not wealthy.

This

Moderately wealthy assets anyways

But income isnt wealth. Wealth is wealth.

Neither is non liquid assets and living below min wage.

Its quite a lot for two people if you don’t have to pay rent/mortgage out of it.

No wealth isnt based on only on liquid assets. That might affect your lifestyle but wealth includes liquid and non liquid assets.

Noones wealth is all sat in cash under the matress. Its all tied up in monets, diamonds, cars and houses. They still have 500k that isnt tied up in houses so is pretty liquid.

This. Equity isn't cash even if it is an asset, and equity can vanish based on the market. It generally recovers but can take years. The asset is only worth the liquidation value.

Whether £3500 pcm clear is comfortable or not depends on expenses -- would any of that have to be spent in upkeep of the BTL business, for example, if one needed a major repair not covered under the LL insurance?

Someone will be along soon to say they have all that plus & feel poor

I wouldn’t even call that comfortable.

didn't take long!

Wealthy, mortgage free home worth 600k and 3 buy to lets with equity of 500k that's 1.1m.
In time equity will increase. If all you are living off is 25k a year to support 2 people then that's not huge but depends on outgoings and I wonder if they have other income streams? Anyway they definitely have valuable assets which in my book makes you wealthy

Their net worth is wealthy but their income isn't quite comfortable.
Even if they were mortgage free and retired I would think a comfortable income for a couple to be £35/40k. Unless they have lots of savings that they can dip into for the expensive stuff like holidays, a new car, new roof etc.

Its quite a lot for two people if you don’t have to pay rent/mortgage out of it

see I just don’t get these comments. On what planet 12k a year each for two people “quite a lot” becayse they don’t have rent or a mortgage. They still have all their bills to pay, food, cars etc.

if this was two kids living in their parents house earning about twelve grand a year each no one would be saying gosh that’s quite a lot, how wealthy are they!

these people are a low income family, the fact they have assets and no mortgage doesn’t change that.

OK so equiv income of around £57k pa, plus a portfolio of three properties and a mortgage free house.
On that basis I'd say comfortable - over 2k pm to spend on what they like.
But you hint at other income streams so potentially asset wealthy, lifestyle comfy.

Would they be seen as wealthy if they depleted their resources quicker and had 6k per month to live off and splash around? Probably but that's the difficulty with trying to put narrow fairly meaningless labels on rich people!