Frugal neighbours, 7 houses no intention of selling ever

[Mrspitt3]

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??

sorry my neighbour and his wife

Well really rhey are both your neighbours, not just the Male. You know like “ my neighbours live in a modest three bed semi*

To be serious though, you don’t know how much equity they have in the properties, what the redemption cost of any mortgages are and they could have another forty years left to live. I don’t think I’d be selling them either in my fifties, but living off the rental income.

The bigger question for me is if they are getting rent in from seven properties why have they not replaced the flooring in their kitchen...🤔

Some people enjoy living miserably OP! Why have a confortable life when you could have a lousy time? If they sold the houses and had a decent standard of living, what would they do with their time? I bet they get a kick out of your bafflement and pity.

Why do you care?

Perhaps they will start a thread on 'AIBU? Spendthrift neighbours, obsessed with having latest tat'...

I've had ton..... my thoughts were the same as yours, I lucky enough to own my own home, but if others didn't own second homes or buy to let, more housing would be more affordable and would in turn have less an impact on housing benefit in years to come.

Why do I care.......I see how much these properties stress them, they tell me, the wife gets really depressed and has sleepless nights. I want to shout ". Being frugal is a good thing and not living beyond means, I see friends struggling financially and have seen a lot of stress due to finances. I think my patience isn't great and listening to their moans just grates me when their stresses can be removed easily by just selling up. But like some others on here have said, they would probably stress if they didn't have their houses. They both have jobs too but both retiring soon.

*I want to shout "sell them"

My cousin (nearly 50) was made redundant from the company that he worked for for 25+ yrs. No final salary pension but fortunately for him, he was a part time landlord of 7 houses (mortgages) which he had accumulated over the last decade. He now does it full time and owns 10 (mortgaged) and manages another 10 for others. His monthly income is still less than what he earned as an accountant before his redundancy. He just about creeps into the higher tax band so he’s not doing badly but he’s pretty far from a comfortable retirement! His wife works part time in a newsagent - I’m sure that he’s not rolling in it!

You need to stop turn Moaning to you, just ask what you said on here.
Tell them how you feel, in a nice way of course... I don't understand why you hang onto them etc.

So if all they do is moan about them then don't engage.

"Oh dear, sorry to hear that. Anyway, must dash! Bye!!!"

Problem solved.

Yes I will have to tactfully say something to them the next time they moan.

Thanks for your replies....

The carpet tiles may well become priceless antiques one day.... either that or a health hazard 😎

I'm not sure it's a crime not to be materialistic and be content with 20 year old flooring. As for the houses, they are only in their 50s so probably don't have plans to get rid. They may feel differently in 20 or 30 years time.

I don't really understand why anyone saves and saves until they die, regardless of whether it is money or property.
I don't mean an emergency nest egg which is sensible. I mean every penny they can, they squirrel away and go without in other areas.

Y'know if they wanted to live with poo smeared over the kitchen floor it is none of your business.

You just sound like a busybody.

Wow OP you sound so jealous.

And why the hell are you so invested in these people?

There is a lot more to this isn't there?

Come on, spill. Who are they really?

Selling them won't help the housing market. If they are let they are providing a home for their tenants and providing property for people who want to rent. Empty houses are the problem for the housing market not occupied ones.
Perhaps they are not particularly materialistic. New kitchens and carpets etc simply don't matter one jot to some people. It may be nothing to do with affordability.
With 7 properties they've obviously managed their money well and know what they are doing.

Its interesting to hear how others live but thats prob because im a nosey old bag. Maybe they are nervous to sell for some reason

Maybe they want their investments to become more fruitful before selling

I'm not sure it's a crime not to be materialistic and be content with 20 year old flooring. As for the houses, they are only in their 50s so probably don't have plans to get rid. They may feel differently in 20 or 30 years time.
My parents have the same tiles in the kitchen that were on the floor when they moved in nearly 40 years ago. Although they didn't have dogs to peg on the washing line I suppose.
But worse, we used to stay on a farm that had the original tiles on the kitchen floor, built in 1886 and they always had dogs, although to my knowledge they never pegged them to the washing line, even after they'd run the sheep through the dip and hosed them down outside. They were lovely tiles, worn beautifully.

Surely people don't standardly change floor tiles?

Because that’s a very successful long term strategy to create financial security - buy and hold for a long time. I imagine you would have said the same thing after they bought there first or second house and it went up in value. Property (indeed most) investment is a long term process. They clearly want to create long term security and recognise that selling the houses now will compromise that. You may indeed take the view that it would be more valuable to spend the money now - which is fine - but that can compromise longer term goals.

A lot of people with larger portfolios have the plan to sell half (or whatever) when they retire and pay off the mortgages and then live off the rent.

They may be servicing large mortgages on all the homes..... Have they said they own them outright?

First of all you say they're retired then they're late 50s and they retire next year.

If they haven't retired perhaps they're waiting for that or if they have retired perhaps the renting out of properties gives them something to do.

Perhaps they don't want to sell now with interest rates low so they won't get much return by having the money in the bank so they're thinking keep it in property.

Perhaps they can't go off and live the high life as they have commitments here that you don't know anything about (elderly parents for example, a cousin with mental health problems).

They are helping the property market by having housing for people to rent so not sure why you bring that up. And to call it immoral and greedy is stretching it a bit.

More than anything they probably don't want to tell you their plans. Not everyone likes the world to know its business. They might indeed be laughing to themselves at how incredulous you are about their lives and how much you try and pump them for information to make sense of it.

I'm sure if I came into a substantial sum of money people might think it's wasted on me as I have no interest in designer clothes or handbags, flash cars or big houses. I would be travelling a lot first class though and might have a top floor flat over looking the Thames or a houseboat rather than a big house.

Maybe the wife has a gambling problem and the husband doesn't want cash easily accessed. Could be anything.

It's not often you read a thread on MN where most people are in support of buy to let landlords. They normally get a roasting for being selfish and immoral.

I've got no strong feeling either way tbh but I do think they're too young to be enjoying all their money now with no thought for the fact that they could have decades left.

Why do you care so much about what they do with their own hard earned money are you jealous or something it's none of your business and why should they sell their homes because you said so get your judgy pants out of your ass before they end up in your lungs. Their money their life not yours there is nothing greedy or immoral about what they are doing.

If I had been very frugal and bought 7 houses round my way, I'd now be looking at an income of £8,400 - £14,000 month, before expenses.

I'd retire now, instead of labouring on for another 4 years, and put the whole lot with an agent who could deal with the hassle, and live very comfortably on the rest.

How I wish I'd been like your neighbours ...