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?

The fact u need to ask shoes u know u r wealthy.

well off

How can you be renting out a property & still be in receipt of benefits (must be otherwise they wouldn't be able to access food banks etc.)?

Look at me, look at me, look at me.

Look at me, look at me, look at me.

Look at me, look at me, look at me.

Any fool can spend all their money and then complain about having none left.

Well it’s clearly not your average worker! Of course it’s wealthy!

Depends on Debt Vs Equity balance. Eg the debt of the Buy to Lets

Some people in the rental business like to make out they do it as an act of charity.

IMO with rare exceptions, people go into business to make money.

In answer to your question OP, I would maybe say "better than average".

Yes, 'wealthy' is a matter of perspective, but it is a matter of long term income vs expenditure really, not assets. Owning a home of £700k doesn't help improve your ability to live month to month. It would only help if they sold it and bought a house for half the amount and banked £350,000. Then, I may consider them wealthy.

I know 2 sets of friends in a similar situation, but they often struggle financially as their income is up and down and doesn't always cover their monthly costs. They also have multiple properties, but they are mortgaged. They do have rental income, but it maybe brings in a few hundred per month profit on each property.

Maintenance issues and costs of being landlords sometimes catches them out and they have a 'bad month'. We can all struggle but have vastly different levels of assets.

I have another friend who had £80,000 saved. 2 properties owned at about 50% LTV. Many would consider them wealthy, however, they had a bad year with their business last year and most of the £80,000 was used to simply cover living expense as their income dropped dramatically by more than three quarters.

I can see how your in-laws may struggle some months, but they are simply living outside their means. 1 income and 2 x 2022 cars, plus 2 kids in private school probably takes up £6,000+ per month. So, even a £10,000 per month income could 'struggle' with all of the other bills life throws at us.

I think it is best if people who let a property keep quiet about it.

I let a two bed, two bath very nice flat, unfurnished, parking, private entry phone, quite modern and centrally heated, for £700 a month which pays for mortgage, repairs and any fixtures and fittings that go wrong. It's a fair price, lovely flat.

It was not my choice to have another property, I inherited. I tried to sell and it didn't go (probably would now the market ahs picked up), I was paying the bills there. Estate agents advised me to let which I did to a couple, who hardly paid any rent! That went on for ages. Then I found a good tenant who left for a residential job and recommended my current tenant who has been in the flat for a year. I have told him if he wants to buy I will give him mate's rate but for the time being, all is well and I don't have to worry.

It's not all wonderful to have a rental property.

LBF, I agree. My son lets out a house his brother owned as I wanted to help my sons buy somewhere before I was too old to be in a position to help so that is let out whilst they still live at home. Had their brother not moved from it then I would have waited a bit longer. One of my other children who moved house this year had been letting out a first flat and like a lot of professional couples in London people marry, had 2 properties, move into one etc etc or are buying a 2nd property but have to rush to get it so keep the first just to secure the second and then keep the first and let out. It is the usual accidental landlord thing.

I certainly agree that showing off about it is not wise and also the state chose for those with mortgages to mean you are taxed on profit you don't make so landlords are leaving the market in droves and there is not much available to rent here in the SE. Labour is about to make it much worse with compulsory registration systems where I think the fees might be £800 although the rates are not yet clear.

I think almost everyone, apart from the insanely rich, tends to live to the full extent of their means. Your relatives are clearly very well off but describe themselves as “struggling” because they spend all their money so an unexpected expense could present them with a problem. But in reality they’re choosing to struggle - they could live comfortably, but less extravagantly, within their means and have lots of spare cash.
Whereas the demonised single parent on UC doesn’t have that luxury - every penny is spent on providing a roof, food and clothing for them and their children.
So people with expensive lifestyles who claim to be struggling make me very cross!

Top 1% is very wealthy.

@grumpymacgrumpface Im not insanely rich but we have private banking and wealth management. It means we have a lot of savings!!! We have never spent what we have available.

So you’re among the sensible minority.

@grumpymacgrumpface I don’t believe it’s a minority with the level of income we had or the ability to have a very good house, holiday homes, cars, holidays etc and still have substantial investments. We would have to be rather mad to spend every penny!