1st Year Analyst - Buy vs Rent Decision?!?!?!IB
Since I have landed (thankfully) a FT analyst position with a BB, I am now looking into what my options are for housing starting this summer. Obviously, I can be like the majority and rent as close as possible to my building in Mid-town, however I was thinking about purchasing a place instead. Call me crazy if you may - but I have been looking into possibly purchasing a place in HOBO, Jersey City, or Murray Hill just to avoid having to rent and waste all that money.
Here's what I'm thinking: Based upon a 70k salary, 15k savings, and 40k bonus I will have approximately 125k (Pre Tax).
Buy a 2BR condo for 250k and have a roommate pay monthly rent of $950.
With a 6% - 30 year mortgage my payments including maintenance fees would be around $2,200. So, Instead of renting in Mid-town or Murray Hill for around $1250 a month, I bite the bullet and buy a place where I have some equity at stake. Also, assume I will live frugally and only purchase necessary expenses (food, utilities, clothes, and the occasional social events)
Please let me know your thoughts and possibly any experiences you guys out there might have had/or knew someone in a similar boat. I know it may be a bit over my limit, but I'd much rather take this opportunity to purchase a small place while prices are at relative discounts, instead of pissing it away on rent every month then having nothing to show for it.
PM if you want more details or to talk personally.
Thanks for all your thoughts and insights