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 !

Wait a minute. Does the £3,500/month include the £25,000/annum income or is it £3,500/month plus £25K/annum?

That's either £42K or £67K a year. I wouldn't say either are wealthy but £67 a year is pretty comfortable

A household income of around £57 k is not low income. They're bring in around £3?5k per month after tax. That might not compete with your six figure salary but it doesn't make them low income!

Also depends on their outgoings. Do they each have a car? Large house on a high council tax band and more expensive to keep warm? Children at uni?

57k with no mortgage isn't bad at all

Of course they’re wealthy. They have £1.1m in equity.

particularly as that income isn't from work

It’s not wealthy, it’s greedy. No one needs more than one property.

£3500 per month, plus mortgage free, plus owning properties makes them on the better side of comfortably well off. They have enough disposable income to live their lives, and have some treats, nice holidays but not enough to put a couple of kids through private school.,

It depends on how much their BTLs are bringing in per month. 25k between a couple is not comfortable even if there is no mortgage to pay. I would not consider them wealthy.

I’d call that fairly comfortable. Certainly not a great income, but bearing in mind that there’s no rent or mortgage to pay and assets that could be realised.

Because I’m nosy, though, I’d like to know the net average annual income from the BTLs, taking into a/c all the expenses/maintenance/void periods/tax - assuming that they declare the income.

Comfortable.

Annual income is low, properties are mortgaged, value of family home isn't particularly high.

1.1m worth of property and £500K investments yielding 5% per year. The £500K of property equity will yield maximum 5% also, so income £25K + £25K, although much of that will be subject to income tax / wear and tear / maintenance. It's possible all their other investments (the 500k) will be in stocks and shares ISAs and therefore be exempt from income tax.

So, as previously commented total house hold wealth puts them in the top 10% of UK population. Income prob round top 20% depending on their tax arrangements.

So wealthier than most, but not in the private-jet/own football club league.

However, it's their life-style which is more enviable as they don't have to work, they just live on their £50-odd K per year passive income.

How much money do they have in the bank? Do they have kids? How old are they? This info would help me to place them better in the wealth-league. The more dependant children you have, the less wealthy you are. 2 kids at private school would use up every penny of the money they gain from income and they'd be having to raid rubbish bins for potato-peelings.

I’m presuming they’re retired.

Wealthy. Might not have sufficient income for a particularly comfortable lifestyle, but in terms of wealth/assets I’d say over £1m of equity in property means you are wealthy.

@AhAgain how are they doing now?