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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Frugal neighbours, 7 houses no intention of selling ever

206 replies

Mrspitt3 · 15/10/2017 09:58

My neighbour and wife live in a 3 bed modest semi, is in late 50s, has been really frugal (still has 20 year old carpet tiles in kitchen etc) all their life which I do respect actually, they have always invested in property (totally understand), what I don't get is that they are now retired they have no intention on selling any of the houses and having a really nice retirement even though the rented houses cause them a lot of stress with their tenants, I said to my neighbour a few weeks ago about one particular troublesome property, why don't you just sell it? His reply was "well what would I do with the money?" ...... if they had no intention of selling them/enjoying a nice retirement then I don't understand why you would buy property. I understand they get a monthly income but they still live frugal lives. It feels immoral to me and greedy when they could help the housing market by selling the houses. AIBU?? Have I missed something??

OP posts:
Saracen · 15/10/2017 10:43

Would you say the same about someone who worked in some other stressful job and chose not to take early retirement despite being able to afford to do so?

Maybe they don't hate the stress as much as you would. A certain amount of stress is necessary to stop people feeling bored and useless. Some people need a higher level of stress than others. Maybe there are aspects of the job which they do enjoy, or they just like feeling useful.

Perhaps they are trying to salt away even more money because they think they may need it when they are old. If they will want private medical treatment and a care home where they might stay for over a decade, there's really no limit to the amount of money which might be needed.

I have no idea what you mean about "helping the housing market". They are providing homes for six/seven lots of tenants. It isn't as if the houses were sitting empty. Do you think they have a moral imperative to sell so that estate agents, solicitors and the government can profit from the transaction?

Original poster
Mrspitt3 · 15/10/2017 10:48

Some good points about the housing market I hadn't thought about, thankyou and old folks home too.

OP posts:
Winebottle · 15/10/2017 10:49

There are some tight people about who don't understand that the joy of money is in spending it.

I do get it to an extent, there is nothing much I want to buy either. Objects don't give me pleasure and I don't want to go travelling or spend big on experiences. If you have been living frugally your entire life, it must be difficult to reverse those habits.

But his money, his choice. I'm glad we live in a free society, with free property rights and we can spend our money on whatever we like. They are not to blame for the housing crisis, successive governments are. If people are living in the houses then, they are not being wasted.

Whocansay · 15/10/2017 10:50

Letting out the houses will give them a steady income that will increase with inflation over time. Why is this difficult to understand? And what's wrong with them being frugal?

thecatneuterer · 15/10/2017 10:51

As people have said - 60 is still young. They may need an income for the next 40 years. If they sell the houses they won't have the income and the money will just disappear.

Also may be they are very keen to leave an inheritance to someone. I'm a LL and want to keep my properties until I die as I my main aim in life is to give money to a particular charity I'm associated with. If I were to sell the houses and spend the money, not only would I risk running out of income before I die, but also the charity would only receive a fraction of what they will if I manage to keep the houses (care home costs of course being a worry here).

So there could be any number of reasons why they wouldn't want to sell - but maintaining an income for life is the most obvious one.

ILoveMillhousesDad · 15/10/2017 10:53

And what the actual fuck does it have to do with you?

innagazing · 15/10/2017 10:53

Maybe thy still have mortgages on the 7 properties? Unless you know all their financial details in depth, it's hard to know how much profit they are actually making. It may be no where near as much as you think it is, especially if they have a tenant that isn't paying their rent.

If they sell, any profit will be subject to capital gains income so getting a regular income from rent can be much more preferable, especially as they're still only in their 50's.

Original poster
Mrspitt3 · 15/10/2017 10:55

Yes people are living longer maybe it's their sense of security

OP posts:
Chewbecca · 15/10/2017 10:55

I'm guessing they are quite risk averse and therefore they prefer the idea of an income from the houses forever after rather than selling and having the spend the capital with no knowledge of how long it needs to last.

Nothing wrong with speculating and inventing stories about other people!

thecatneuterer · 15/10/2017 10:56

Very good points from innagazing. Yes the houses could well be mortgaged and they would lose probably 40% of the money from any house they sold in capital gains - so another very good reason not to do it.

Bluntness100 · 15/10/2017 10:57

My neighbour and wife live in a 3 bed modest semi

I think it’s everything to do with you. Your wife lives with the dude. I think you should divorce her.

sukitea · 15/10/2017 10:59

I think it is much more immoral to take loans and live beyond your means.

YABU OP. We are very frugal on the outside. Everything second hand, not all of it is in good condition either. We had a tough few years health wise with one of the dc and it really showed me that material things are not important or of great worth to me. My dh is not white British and has a very different cultural outlook on money; he wants to invest most of our money for the dc, which is normal in his background. We always bought second hand clothes when the dc were younger and dh and myself rarely buy new clothes. We do travel quite a bit though (frugally, though!)

abilockhart · 15/10/2017 11:00

Why does your wife live with your neighbour?

Maybe the multi-millionaire neighbour has some hidden attraction?

SleepingStandingUp · 15/10/2017 11:01

they could help the housing market by selling the houses
Yes how morally corrupt of them to rent out housing to people who cannot afford to buy. They need to evict their tenants forthwith! I say make people live rough until they save enough to buy.

I've seen a LOT of stress the ""remnants"" cause them thou you need to watch Wyonna Earp and then you'd understand why they don't want to evict their tenants.Grin

Original poster
Mrspitt3 · 15/10/2017 11:02

Bluntness.... sorry my neighbour and his wife. 🤓

OP posts:
Original poster
Mrspitt3 · 15/10/2017 11:07

Some very interesting points of view I hadn't thought about thankyou for enlighting me folk.... they are looking slightly less odd now. I will no longer have these questions ticking in my head when they stress and flap about their tennants not looking after their properties or paying up on time.

OP posts:
QuiteUnfitBit · 15/10/2017 11:07

Eh? They're not retired. They are only in their 50s. This is their job. If they sell, there're no high interest rates on savings. And they'll lose some of the capital on capital gains tax. They'll then have to live of their (reduced from tax) capital. And they may have a mortgage on some of the houses.

KickAssAngel · 15/10/2017 11:09

I've often heard on investment programmes that 7 houses = 1 income. So, they are living very wisely, using their investment to provide an income. I would expect someone in their 50s to be looking at working another 20 years or so. If they're planning to leave full time employment in a year, then they are living off their money and enjoying the benefit.

In the UK, housing is generally the best investment over a 10 year period. So, they get to enjoy the income from rent, and have savings for their 'proper' retirement in 20 years from now.

If they are half way decent landlords, they're providing a service as well. What makes renting so expensive isn't individuals who own a few houses, but big investment companies who deliberately drive prices up to get the best return. Your neighbours are being sensible with their money and providing homes for people. It's none of your business, but perhaps you could try seeing things a bit differently.

HeyRoly · 15/10/2017 11:11

Some people like to hoard money. They don't like to spend it (hence neglecting the upkeep of their house) they just like to collect it. They'd rather die with piles of money to their name than use the money to make their lives easier.

Jacana · 15/10/2017 11:11

Back to these puppies, then. Quite take the point of the shitty problems associated with tail pegging, so, op.tell us...are they pegged out on a rotary line (by the ears, natch)? Imagine that on a nice blowy day, all whizzing round,little legs pedalling...awwww
I now want a puppy. And a rotary clothesline Wink

Puzzledandpissedoff · 15/10/2017 11:22

I don't think they should sell them cheap just sell them

Come off it ... you may be an exception of course, but most who peddle the tired old trope about depriving first time buyers of a house are the first to shout if a BTL is offered at market value: "they've had all that rent; why shouldn't they help someone else for a change?"

A classic MYOB situation, I'd say

Mintychoc1 · 15/10/2017 11:24

They're late 50s, they could have another 30-40 years left. Some of that could be spent in care homes costing £500 per week. Hanging on to their property seems very sensible. In 20 years time it might seem strange for them to not sell up, but right now it's entirely logical.

I also understand frugality. I live well within my means. I could have far more in the way of treats than I do, but I'm fearful of what the future may bring so I keep things in check.

I think discussing and speculating about other people's lives is fine - everyone does it! But I think you're wrong to imply that what they're doing is immoral. If anything, it could be considered more immoral to sell their houses, spend the money on champagne and yachts, and then expect the state to pick up the tab when they need care in old age.

Ivehadtonamechangeforthis · 15/10/2017 11:26

Haven't read any other posters...

I'm with you actually OP. It's supply and demand that is pushing the house prices to ridiculous, unaffordable levels. If you live in the South East, as I do, owning a home is almost impossible if you're single, single parent, or even a couple on a moderate salary. Managing to save for the sizeable deposit and then actually get the mortgage approved is so hard unless you're on a very good income.

My opinion may not be a popular one with other posters who own more than one home but I really do believe you should only be able to own one property, the one you live in. I also believe there should be some kind of rent regulation/restrictions. I live in an area where a 2 bed flat is now £1,400 per month! Ridiculous.

My neighbour owns six houses in the area and often the houses near me are bought as buy to lets.

thecatfromjapan · 15/10/2017 11:26

Well, I guess you asked them and they didn't tell you.

You've tried MN - and I guess it must be unsatisfactory because we don't really know, either.

Have you thought of approaching a fortune teller and asking them?

specialsubject · 15/10/2017 11:29

Ah, the ' hoarding property' argument only heard on mn. Which happily uses amazon, uber and Starbucks ( and blubbers at the very idea of one being withdrawn) and doesn't mind buy to leave because that's the holy city of London.