Prime home county properties follwoing the downturn

The more money you have tucked away in investments, the harder you'll have been hit over the last 12 months. If your wealth goes from 500 million to 250 million you probably feel a lot worse off than if your investments go from 1000 to 500.

Ok, not everyone with money will have been hammered so hard, but unless you've had your family wealth tucked away in gold or oil futures it's been a pretty rough year. So caution may be sensible, especially as such people aren't going to be living in one bed flats, desperate for a better standard of living.

Andrew McP

Though a better investment next year?

"Andrew MacPherson" wrote

I think if I had anything over 50 million (eg 250m or 500m), then I'd feel "very wealthy". It doesn't matter what the exact number is, I'd feel pretty-much the same (there's probably not anything I'd like to do, that would require more than 250m!).

On the other hand, if all I had was 1000, and someone took half of it, then I'd probably be quite upset!

Yes, but 500 is fairly easy to replace (for anyone who really wants to) with a bit of cutting back or a second job. 250 million certainly isn't; it requires serious time, effort, and skill (or maybe luck if it's a BTL empire) to build up again.

I suspect this is a bigger factor in the current slow-down than many people suspect. We were, after all, told that housing markets like London were being dragged up by the influence of pretty wealthy individuals... including thousands in the City. And how many of those are 100% confident about keeping their jobs at the moment?

Andrew McP

"Andrew MacPherson" wrote

If it was so easy, they'd probably have had

"Andrew MacPherson" wrote

But as I explained in the bit you snipped, that doesn't matter. 250 million will do just as well as 500 million would -- it'll still let me do anything I might want to.

So why do you think I'd need to build it back up to 500m ?