Is a millionaire rich nowadays?

[Canfordhacker]

You still hear it all the time "He's a millionaire". And in years gone by it was something people aspired to, and one felt that millionaires could have whatever they wanted, not a care in the world.

But I'm guessing that nowadays we all know lots of people whose net worth is north of £1m (and so are millionaires by that definition). But I wouldn't think of them in today's world as being filthy rich.

So what is the 2024 equivalent of a 1980's millionaire?

 

[Neilds]

Is he a cash millionaire or a person who just happens to have a fairly nice house in a nice area? We have a house worth 1/3 million but that is just because of where we live, we still have to work to pay the bills and have decent holidays

 

[PJ87]

If you have a million in the bank then I'd class you as a millionaire

If it's in pensions and your house I wouldn't class

When I retire my pension should be worth just over 1 million, my house should be paid off worth prob 600k , so asset wise I'd be a paper millionaire but I won't have it in the bank

 

[road2ruin]

Is he a cash millionaire or a person who just happens to have a fairly nice house in a nice area? We have a house worth 1/3 million but that is just because of where we live, we still have to work to pay the bills and have decent holidays

Yeah, agree, due to the area I live in then I guess I would be close to a millionaire in terms of assets....essentially the house however in terms of cash in the bank I won't be retiring any time soon.....

 

[Pin-seeker]

£1m in the 80s would be £3-4m now?
House & car prices have got to have at least tripled.
Cost of living more than tripled.

 

[Lord Tyrion]

I think to be an 80's millionaire you probably need to have £5m now. Scary how that has happened, it feels like it has crept up on us.

 

[Lord Tyrion]

£1m in the 80s would be £3-4m now?
House & car prices have got to have at least tripled.
Cost of living more than tripled.

Pah, my £5m person would see your £3m person as a peasant .

It's somewhere between those figures isn't it? A millionaire back then had a big house, flash car (RR), maybe a boat, maybe even a Villa abroad. Convert that to today.........

 

[PJ87]

Pah, my £5m person would see your £3m person as a peasant .

It's somewhere between those figures isn't it? A millionaire back then had a big house, flash car (RR), maybe a boat, maybe even a Villa abroad. Convert that to today.........

Yeah he doesn't have a 4 bed semi with a Kia niro

Altho my golf bag is looking fantastic

 

[Backache]

12% of property prices in London are over £1M apparently. So there must be a lot of millionaires there largely through property inflation if they own their own house or have a large stake in it.

 

[Pin-seeker]

Pah, my £5m person would see your £3m person as a peasant .

It's somewhere between those figures isn't it? A millionaire back then had a big house, flash car (RR), maybe a boat, maybe even a Villa abroad. Convert that to today.........

Tbf it probably is more £5m

House prices in my area are on the lower end compared to the rest of the country.
My parents 3 bedroom detached bungalow was recently valued at £390k.
It’s nice,but nothing special.
That’s a big lump of your £1m gone.

£1m in other parts of the country would get you nothing.

Super cars can be £500k now.
Some £2m

 

[Pin-seeker]

12% of property prices in London are over £1M apparently. So there must be a lot of millionaires there largely through property inflation if they own their own house or have a large stake in it.

Surely a lot of people in London sell up & move when retiring.

 

[PJ87]

12% of property prices in London are over £1M apparently. So there must be a lot of millionaires there largely through property inflation if they own their own house or have a large stake in it.

My parents are technically millionaire , their house is worth roughly £800k , they paid £120k for it in 1996

Insane lol

Add their pensions to that and they thrifty savings over the years they are defo paper ones

 

[PJ87]

Surely a lot of people in London sell up & move when retiring.

Depends what you want. My parents won't ever move out the area. They would be too far away from their family

For context my mum lives half a mile from the house she was born in which is 1 mile from our old house. She only has lived out of the area for 1 year of her life

Also we have amazing bus and tube connections. As they get older they appreciate using them instead of driving sometimes

If anything happened they would be fine

Plus friends are around here

 

[Pin-seeker]

Depends what you want. My parents won't ever move out the area. They would be too far away from their family

For context my mum lives half a mile from the house she was born in which is 1 mile from our old house. She only has lived out of the area for 1 year of her life

Also we have amazing bus and tube connections. As they get older they appreciate using them instead of driving sometimes

If anything happened they would be fine

Plus friends are around here

I live less than 1m from the house I grew up in.
Live 1/2m from my parents.
Probably a 5iron from the mother in law

Us Barnsley folk don’t tend to venture far

 

[Lord Tyrion]

Surely a lot of people in London sell up & move when retiring.

My FiL lives in a very pretty Northumberland village on the coast. There are quite a number of SE retirees who have moved there in the last 10 years or more. They can live very well with what their London house gives them.

 

[jim8flog]

I remember about 20 years ago Michael Winner saying you need to have £4m to live the millionaire life style.

Personally I have said a few times I have had the money to buy a Porsche but I have never had the income to run one which is a good analogy.

 

[Bunkermagnet]

To be classed as a millionaire, I consider you need at least a million sitting in a bank somewhere, not assets or the like just cash sitting there untouched and not needed.

 

[jim8flog]

When it comes to house values when my son and DIL were due to have their first child it was suggested I move close to them South Hertfordshire what I could afford would only buy a 1 bed apartment 50 miles from them.
My view on house as an asset is that in the main it means a substantial change in life style to realise that asset unless you live in a very affluent house and are prepared to move 100+ miles away

 

[PJ87]

When it comes to house values when my son and DIL were due to have their first child it was suggested I move close to them South Hertfordshire what I could afford would only buy a 1 bed apartment 50 miles from them.
My view on house as an asset is that in the main it means a substantial change in life style to realise that asset unless you live in a very affluent house and are prepared to move 100+ miles away

Unless my kids move very far away and we moved closer to them in retirement I can't see us ever moving . This house is perfect size IE can raise a family but when they move out we can move down the middle floor if we want and just have a manageable size house for 2 people

 

[jim8flog]

Unless my kids move very far away and we moved closer to them in retirement I can't see us ever moving . This house is perfect size IE can raise a family but when they move out we can move down the middle floor if we want and just have a manageable size house for 2 people

My big problem is that I live in a converted 5 bed house. 3 of the bedrooms are just storage areas but I live in the only flat village in the area with every shop I ever need within walking distance.

The things I would hate having to give up with downsizing is a decent size lounge - mine is part TV viewing area, part dining area and part office/computer area and a downstairs bedroom (the bungalows round here have the same value as the house and come on to the market only when someone dies).