Do you consider this ‘wealthy’?

[haleeeee]

Two kids in private school since primary. Two buy to let’s of around 250k value each. One holiday home value 280k. Own home mortgage free. Income allows for a few holidays a year circa 3k each time.

Wealthy? Well off? Or just better than average?

They might be asset rich but cash poor, depending what their actual income is. Does the income from the rental properties just cover the mortgages so their paid jobs are the only income? If they're not high earners they might not have a huge budget after paying private school fees.

If they were genuinely struggling they could presumably free up cash by selling a property, taking kids out of school etc, so they're obviously not on the breadline. I would say they're well off but there is a difference between owning assets and having ready cash available

So are they struggling then with 3 mortgages and school fees? Sounds possible. Maybe they’ve over stretched themselves? Did the family home come with strings attached? Where did the free family home come from?

Wank

Yes. Not rich/super rich, but wealthy

Not wealthy

They're doing alright

Wealthy is something else

It’s all relative. What’s their net worth? Assets - liabilities. What do they own in liquid assets? What do they owe on the rental properties? Are they struggling because they’re house rich/ cash poor? How much debt outside of mortgages do they carry?

Good for them for building wealth though, if they are at the start of their wealth building, it doesn’t come without struggle and sacrifice.

Are you asking if they’re millionaires or not sure how they’re struggling because they’re rich? Having money in property is very different to money in the bank

Why do you go out with them? Of course they're wealthy, and tone deaf.

People can be asset-rich but not have huge amounts of disposable income. Maybe they do need to keep track of spending 🤷‍♀️

Oh, people can be strange about money. This couple may have high outgoings for various reasons and/or credit card debts. The mortgages on their rental properties may use up most of the rental income, along with all the other costs. They may want to save every month and find that their disposable income gets used up. Or they might not manage money very well. The obviously don't feel wealthy, but it would be hard to argue that they are in any sense poor!

Though to be fair you can be asset rich yet cash not so rich. Depending on their income it could be they prioritise holidays then private school fees are eating the lions share of their remaining disposable income. I will happily skip desserts (which are at best average in all but the best restaurants) in favour of holidays etc.

Very wealthy to me.

Well off.

Wealthy might be a couple of million on top of that.

I suspect interest rates have caused issues too meaning the btl properties aren't making money or loosing

They may have more than you but they may have a lot more outgoings than you. It’s unfair to say you genuinely struggle implying that they can’t possibly struggle because of their assets. Why let it make you feel shit it’s not a competition

Very comfortable. The wealthy wouldn’t have mortgages on the buy to let

Yes they are wealthy in terms of their capital assets but they can still have cash flow issues. You haven't said their incomes and they have school fees, leased cars and the expenses of buy to let especially tax can cause issues if they are mortgaged nowadays.

So whilst they have assets their income vs outgoings ratio may not allow much disposable money at the end of each month.

Didn’t say they were not tight fisted 😂

@IhateSPSS exactly. People on UC are berated for their "lifestyle choices" and told to cut their coat according to the cloth all the time. No reason why insanely well off people can't do the same. They have more scope to downsize too.

If they have to work then I’d say affluent or comfortably off, not wealthy. To me wealthy is having sufficient assets that generate enough income to provide a lifestyle that allows you to do everything you’d like to do without working.

I'd say well off but it would t take much to destroy that. So not "wealthy" imo.

I wouldn't say top 10%

@haleeeee

id say well off, not wealthy.

but I'd also tell him to STFU 'struggling' it would be more interesting to know what their take home pay is.

I'd say well off but not wealthy.

Genuinely, where do you get your ideas from? Do you ever consider looking at the ONS or similar data?

Yes, rich.