What do you consider rich?

[MattTheSkywalker]

My friend just bought a hotel room in south beach for 300k. One thing I don't understand is HOW the system works. How do you know if they are renting your room or do they pool all the money together and divide it somehow?

I am not really sure what you are asking. I don't see why you;d buy one room - South Beach rooms got for $300-$500 a night (and that's right on Ocean Drive - even the Delano wouldn't be more than$500/night for one room) - so that means he'll have to use the room 1000 times to get his money worth.

Sure it wasn't a condo or something? I've never seen someone buy one room - usually it is an apartment or suite within the hotel. Rooms are almost always available - there wouldn't be a lot of prestige in owning one.

Depending on what you buy and where, the suiet is yoursfor the asking. You usually purchase the right to use it a certain number of days per year (30 is a common one) and usually in the agreement, you have to give the hotel a certain number of days notice that you intend to use it.

Buying the suite does not give you rights to any revenue that may be derived from its rentaltoother people. The hotel owns it - you just have exclusive rights to use it whenever you want, in accordance with your agreement with the hotel.

 

[Testosterone boy]

I am amused by the large percentage of EFer's who think they will be rich. The odds are quite low unless you were born into it, marry into it, or very well connected.

 

[Machiavellian Muscle]

I am not really sure what you are asking. I don't see why you;d buy one room - South Beach rooms got for $300-$500 a night (and that's right on Ocean Drive - even the Delano wouldn't be more than$500/night for one room) - so that means he'll have to use the room 1000 times to get his money worth.

Sure it wasn't a condo or something? I've never seen someone buy one room - usually it is an apartment or suite within the hotel. Rooms are almost always available - there wouldn't be a lot of prestige in owning one.

Depending on what you buy and where, the suiet is yoursfor the asking. You usually purchase the right to use it a certain number of days per year (30 is a common one) and usually in the agreement, you have to give the hotel a certain number of days notice that you intend to use it.

Buying the suite does not give you rights to any revenue that may be derived from its rentaltoother people. The hotel owns it - you just have exclusive rights to use it whenever you want, in accordance with your agreement with the hotel.

Yeah he showed me the website that was pre-selling these rooms in the hotel. He said it will be competing w/Delano. 300k was the price including all furnishings. I was confused about how he would track who was renting his room etc, but he didn't answer me. Thought you might know. From what you are telling me from above, having a suite in a hotel would be a poor investment. Pay all that money to get rights to a room and have the hotel rent it out for a profit, I wouldn't do that.

 

[sh4dowf4lcon]

I consider a person rich if they have more than enough money to meet their needs, and still put money aside to accumulate. Whether they make 50K or 750K if they spend less than they make and plan effectively a person could be considered "rich".

 

[MattTheSkywalker]

Yeah he showed me the website that was pre-selling these rooms in the hotel. He said it will be competing w/Delano. 300k was the price including all furnishings. I was confused about how he would track who was renting his room etc, but he didn't answer me. Thought you might know. From what you are telling me from above, having a suite in a hotel would be a poor investment. Pay all that money to get rights to a room and have the hotel rent it out for a profit, I wouldn't do that.

It;s not an investment at all. It's a convenience. You do it when investments don't matter anymore. This is very high end stuff.

 

[grlpwrd]

It depends on a person's debt to income ratio.

As they say the more you make - the more likely you are likely to spend. It really doesn't matter how much $$ you make, it matters how much you actually keep.

 

[Machiavellian Muscle]

It;s not an investment at all. It's a convenience. You do it when investments don't matter anymore. This is very high end stuff.

I see. You learn something every day...

 

[bignate73]

Technically, you are only rich if you have a perpetual source of high income without having to work, like stock dividends for example, money with a capital M. If you have to work for your money, you arent rich you are well off.

bingo!

i think alot of the replies on here have been percieved number type responses. example: if i had X million dollars based on how i think i'd live, i'd be fine (or i'd not see the end of the money). your perception is a finality. my perception is more ongoing. i dont think its valuable to have money just tied up in some liquid account and you chip away at it as you live. its not realistic and not how the rich do things. having cash like that sitting around is foolish because it can be making you more money, and is also available to those who sue you. no one mentioned where they kept their money, so im assuming its sitting in mom&pops credit union, or under the mattress.

now on to my perception of rich:
passive cashflow coming in to exceed my living/lifestyle expenses (whatever i may decide to do within reason). a bit of excess income that i can put into other investments to allow me and others around me to live better. of course this means im not working for someone (jobwise)as well. if i do have a job, its for fun....and a business i own.

 

[sigweed]

haha at my high school, you'd be poor if your family income was $300,000... so coming from there, I'd say you'd have to have an annual disposable income (after every penny of taxes/debt has been paid) of around $10 million before i'd consider you rich.... shit though, i'd be more than happy if i grow up and make $300,000 a year!!

 

[sk*]

maybe i'm rednecking with all this 5M stuff but rich would be about 150k a year. For that amount you could have a mansion (in the sticks) and a couple of luxury automobiles.

Maybe if you live in harlem ...

-sk