1 in 65 of us is a millionaire according to Barclays.

[Janus]

According to Barclays, 1 in 65 people in the UK is a millionaire. The figures seem a bit high.

 

But on further reading, they are including the value of a person’s home. Has that always been the method of assessing whether someone is a millionaire, or is it the new way? Are you one of them?

http://www.theguardian.com/commentisfree/2015/aug/28/recently-became-millionaire-quantitative-easing-inflated-value-homes

[WageSlave]

Isn't that's about 1.5% of the adult population. So another 98.5% of adults are not millionaires. That figure doesn't seem unusually high to me.

 

I would assume counting the value of someone's property isn't something new when working out their net worth.

Edited November 21, 2015 by WageSlave

[ukdobby]

Its probally due to house prices down south.

[Anna B]

I'm not one of them....

[Funky_Gibbon]

According to Barclays, 1 in 65 people in the UK is a millionaire. The figures seem a bit high.

 

But on further reading, they are including the value of a person’s home. Has that always been the method of assessing whether someone is a millionaire, or is it the new way? Are you one of them?

http://www.theguardian.com/commentisfree/2015/aug/28/recently-became-millionaire-quantitative-easing-inflated-value-homes

 

I don't see why it shouldn't be used. If you own something worth a million then you have an asset you can sell. You might have to move to another part of the country with lower house prices to really benefit from selling but you've got that option to turn yourself into a cash millionaire that most others don't.

[carosio]

[quote=WageSlave;11217409

 

"I would assume counting the value of someone's property isn't something new when working out their net worth"

 

I presume they've factored in any mortgage and other debts.

Edited November 21, 2015 by carosio

[Anna B]

Extortionate London house prices are skewing up a lot of statistics.

[I1L2T3]

I don't see why it shouldn't be used. If you own something worth a million then you have an asset you can sell. You might have to move to another part of the country with lower house prices to really benefit from selling but you've got that option to turn yourself into a cash millionaire that most others don't.

 

Be interesting to know what proportion were asset rich but cash poor. For example there must be plenty of pensioners in high value property but with very little cash income. I guess there are plenty of non-pensioners in that situation too with outgoings matching or exceeding income, maybe no savings or other assets but holding ownership of a £1m+ property.

 

On paper they may have the option to convert their assets to cash but then like you say they need to live somewhere. If they downsize they become more cash rich and more like true millionaires.

[tzijlstra]

I know several 'millionaires' who are rich because of the property they own, the problem all of them have is that they have very high expenses, either to maintain the property or because they live in very expensive areas.

 

"Feeling rich" is a combination of having a sensation that you don't have to work for money as well as having money to spend on the things you want to spend it on. Therefore having a high non-salary income is preferable to owning a large property.

 

In other words: if you're smart, you let your big home out and go live in a nice but cheaper home (elsewhere) - with the goal of maximising your monthly/yearly income.

 

(PS: Unfortunately the latter is impossible in the Netherlands, due to taxation rules it is highly recommended to plough as much debt as you can into a house, not a very healthy construction!)

[Didi_sh]

Unfortunately I'm not one of them