$2,300 for rent for analyst?
What do you guys think of an apartment for an analyst that costs $2,300 / month? I don't know anyone in the city, so I can't have a roommate - and the idea of a random roommate sounds horrible to me. So, I have to live alone. And, its really hard to fine anything for less than 2k that is also near work for me. However, I found a really nice, no fee, luxury building from which I can work to work for 2,300. For the standard analyst base salary of 70k, I think it will come to about 4k / month after tax. Therefore, more than half of that after tax amount is going to the rent. Is this livable or crazy?
its crazy.
If you look hard enough you can find a decent two bedroom in Santa Monica for ~1950-2000.
Rent expense for analysts - regional (Originally Posted: 07/06/2013)
What do you guys/analysts in regional offices like Houston, SF, LA pay for rent. Where in these cities does everyone live?
Sure you can afford it, but if you are in banking and are never home, is it worth it?
Can a First Year Analyst really afford $1,500-$1,600 for rent? (Originally Posted: 10/13/2012)
Is this on the upper end of a First Year's budget or just about what one should expect?
Unless you have other income/significant savings it's not worth it. Living near work as a 1st year banking analyst is overrated. Find a place for $1500 in Brooklyn, Queens or downtown.
You can find a huge range in Chicago: I'm paying 1k for a shit-tastic studio in the Gold Coast. You can pay 1800+ for a nicer one with a gym, full bedroom, etc. Or you can move a bit further out (Lincoln Park, Wrigley) and pay even less than what I am.
NYC is just plain expensive. Assuming you want to live by yourself in Manhattan, get ready for $1800 - 2k rent.
thats true but do they really have a choice? Most places near IBs in NYC are in this price range. You go below 1500 or low 1000s and you're all the way uptown in Harlem or Washington Heights
I'd go for location first, then figure out price. I mean some people spend over 50% of their GROSS income on rent (study from Chicago I think). That would be absurdly high for you, but if you look at it, making around $55k my friend lives in a nice apartment for $1250 and lives fairly well. You will make more, but also spend less time at home. I'd look for location then grab a studio or get roommates. Just remember, $60 for a background check for a dude you don't know is cheaper than having a kidney stolen.
Crazy.
You answered the question yourself there
I used to pay $1350 a month and still saved over 50% of my after tax income.
Get a roommate in the City, even if it is a stranger; you won't be home 75% of the time, so who really cares?
Very possible. I'm throwing 1600 for rent and managing well (lower-end consulting salary). Although per the poster above, is it really worth it? I'm trying to move out of my current apartment because while it's got a killer view and is in prime real estate, how often are you really home?
That's a lot to spend on rent, for sure. It is better than doing something in the $2,000 range and paying an enormous broker fee though. I've seen analysts spending more than $2,300 before, though I would never advise it. I would go with the suggestion of others here and look for something cheaper in the Financial District / Brooklyn / Queens, the commute is a lot shorter than you think, as long as you live near a subway.
If you do end up spending that much on rent, make sure that you save all of your bonus.
no its not really worth it, but do you have a choice?
Don't settle for 2300. Like one of the posters above said, look in Brooklyn or possibly Hoboken for a smaller, cheaper place.
I pay $1300 as a 1st year. $1500 - $1550 was my ceiling while looking. At $1,300 / month I'm looking at ~35% of after-tax earnings on my salary.
get random roommates... you need to get over your irrational fear of people... talk to ppl and vet them beforehand but it is stupid to spend that much on rent and stupid to live in the boroughs unless you are right next to the subway line... even then, it isn't worth the lifestyle tradeoff.
Get (a) roommate/roommates. There are neighborhoods where you can find cheaper options (FiDi comes to mind).
I completely agree on living with other people. Simply make sure they're responsible, and wham: instant roommate + potential bro. In my experience, living with people significantly lowers the amount of stress in your life; imagine having help with accepting UPS deliveries, paying rent/bills while you travel, help with house maintenance, and not to mention the insane benefits to your social network?
$2300 is absolutely insane. Go find some randoms and pay those $1500/mo for a nice spot in Brooklyn. Here's the tip to make sure they won't screw you over: make sure they scrutinize you as much as you do them.
FiDI is so boring..ha
Why not rent an apartment in the financial district, murray hill, battery park or somewhere cheap like that? The city is very easy to get around on, given the use of subways. You can take a subway from Brooklyn to the financial district in 7-10 minutes. Why not just do this? People don't understand that living in Midtown (as this seems where you are) is not smart to do at a young age, and isn't worth it just "because its close." God damnit, Manhattan is an island. It is easy and fast to get around from anywhere
What are other "cheaper" areas? Besides all the way uptown..
You are scared of strangers? Post on craigslist you are looking for an attractive female roommate. Things can only get weird.
Murray Hill.
What, what, what ?
duffmt6 is right. Who cares if it's "boring" if you're never there anyways.
Not that crazy, but what you can do is rent a 2 bedroom, and rent out your room to someone for a short period of time and see if you can adjust to living with a rando. I've done it several times with no issues.
Get some fucking roommates. > 50% of your take home to rent? Before utilities? Come on man.
Is FiDi really that bad? You can get a nice place on a high floor for less than other places. For your two years as an analyst would it not be worth it?
2300 is tough if your parents can't help you out. But it's certainly doable...
.
My studio is currently for rent dono what the landlord upped it to but I was paying 1500, 70th and 1st PM me if your interested... Unfortunately you will have to use the broker who is currently showing it.
And 2300 is nuts. rent my apt so ppl stop coming to see it.
When considering your rent, factor in the $ you will be saving by having expensed dinners 5+ nights/week.
Go with Murray Hill. I'm leasing an apartment there. Nice neighborhood, albeit boring.
My first year I had a place in Midtown for about ~$1700/mo. I recently moved to Gramercy, sharing a bigger place but now paying ~$1500/mo. I'm in ER at an MM. It was certainly do-able but the real question is how much do you want to save your first year? My philosophy is that as long as I am enjoying myself, I don't mind being broke for 1-2 years post-undergrad.
I also have unnecessarily excessive spending habits, which further proves the point that it's definitely do-able. The reason why I'm even paying this much is because I'm lazy as fuck and I hate commuting. However, I moved this year because I spend 75% of my day out of my apt, whether it's in the office or elsewhere in Manhattan.
Imagine this. You have $1275 in your hands. Think about the gratifying sensation of rubbing freshly-minted, crisp bills against your thumb and index finger as you cynically justify your diligent, hard work. And when you're done, when you get to the last bill, crush it up into a ball and throw it down the toilet. This is the reason why I moved.
I'm only saving $200/mo. Yes it's not that much but I really hate commuting.
any way to get a place in midtown for sub-$1500? I hear commuting from Fidi or uptown is horrible for a first year in banking on a team that is known to work you significantly harder
Not to hijack, but how are you guys going about getting these random roommates? How do you vet them (even creeps can present themselves well in a social setting)?
Commuting from FiDi is generally pretty easy. Every major subway line is within walking distance. It really depends on where your office is.
I lived with randoms in 2-8 month sublets that I met on Craigslist for like two years; all but one person were completely normal.
There's nothing better (and, to be honest, sometimes nothing worse) than living with three 24-year-old girls. The biggest downside was that taking shits was sometimes awkward.
A couple people have recommended FiDi as a place to get cheaper apartments. I am actually looking in that area, but am not finding anything lower than about 2k/ month (which doesn't make sense because with a broker fee that comes out to more or less $2.3k).
You guys spend way too much. You should be spending no more than 30 dollars a month on rent. What you do is use 10 dollars to buy a sleeping bag and hopefully buy used pillows from flea markets. then you use the rest of the 20 dollars to buy additional bags from all the robbings/beatings you'll take from sleeping outdoors.
Finally, you pick a nice spot outside your office and start sleeping on the street.
Anyone who doesn't do this is a complete idiot and spendthrift. Not like me, awesome illinoisprogrammer guy who is saving an extra misery amount per month, i'm way better than you all! oh and harvard sucks illionois state skools rule.
You shouldn't have to pay a broker fee in FiDi if you reach out directly to the high rises.
2300 is ridiculous and unwarranted. Try to shoot for 1500 max
I might be really horrible at this, but I also have searched the high rises in FiDi and I haven't found anything under 2k
Yes, and you probably won't if you are dead set on a studio or 1 BR. Don't know what to tell you except to get a roommate or look outside Manhattan. It's not going to get cheaper than FiDi unless you want to head up to Harlem.
You can get a much cheaper spot.
Consider me weird but I am not too fond of subletting with random ppl from Craigslist. Even for this summer, I am having a hard time finding a place in NY, i brought subletting up to my mom and she was so against it.
Good thing you are an adult. Either have your mom help you pay for an apartment or find someone to live with.
Edit: Just realize you aren't OP. Oh well.
Welcome to living in a major city like NYC. Just find someone who lives in a nice(r) neighborhood who seems like they have their shit together.
Have you guys reached out to your analyst classmates? That's a good place to find a roommate if you don't have friends in the city...
Harlem's actually cool. I stayed there (well, Washington Heights) for about 2 months at some point and it's definitely better than most people think. I was on the A/B/C/D line though. Paid $800 a month + utilities and had a huge room in a 2BR with a great living room.
No, it's not farther than bk if you work in midtown
spend the cash brah. No one needs a $100mm funeral, or a $50mm ex-wife.
Crazy and way too much money.
Live close and get a roomate (ideally someone who works far far away from Wall Street).
Your life is going to be in excel so it's not like you'll be having much fun your first 3 years or so on the street.
If you really can't stand a roomate, the pain of the commute may crush you if it's too far, anything over 10-15 minutes for a commute seems nuts. You're going to kill yourself on those 120+ hour weeks for not having an extra 30 minutes to sleep.
Paying that much is idiotic. There's Queens, Harlem or BK where you could easily find a 600+sqft studio and pay $1,200 to $1,800 in reno or new building...
get a roommate dude
Roommates are overrated, trust me, spend a few hundred more for your sanity. I know you don't live there most of the time, but those few PRECIOUS hours alone in your own apartment after a brief walk home after two all-nighters you just pull, it's PRICELESS. You will make the money back down the road easy, avoiding burn-out is paramount in your first year.
General rule of Thumb is that you do not want to pay more than about 1/3 of your take home pay in rent. With yours, that means somewhere around $1500 which several posters have hit with their recommendations.
Though I agree that you should try to economize with rent, that rule of thumb doesn't as readily apply to NY. Also, FWIW, you're ignoring >30% of take-home pay for analysts by not considering bonus pay (admittedly, everyone at the junior levels of this industry takes saving the entire bonus for granted).
Don't you need to earn 40 times your rent? I don't think you qualify for it unless you get a guarantor that earns 40 times. Either way, this kind of rule is to prevent people to rent places that they can't logically afford.
Just go on Craigslist and find a roommate. I've found 2 roommates on CL and know countless other people who have done the same with no problems. It's not a big deal. There are lots of finance types in the city, you shouldn't have much of a problem finding someone with a background (good college + job) similar to yours.
Crazy.
Trending... its crazy. I'm with you on the room mate horror. Suck it up for a year or two and thank us later. Good luck mate.
Tons of people in the city get random roommates. Look on craigslist and try to meet them before hand. Also make sure it is a professional who thinks similarly. You'll be fine for now as you don't spend much time home anyways.
That's what I used to pay in the city, could not deal with a random roommate either. Seems about average for a nice 1BR. I would NOT recommend you live in BK, unless you are fine with the demographics of that area.....
As others said, try FiDi, UES/UWS or near Penn Station. Having a comfortable unit to go back and relax at after stress at work I believe is worth a premium, but to each their own.
Still think it's crazy with a $100k bonus?
Boutique pay > bulge
I'd say high end of normal, assuming you are at a firm where you can expect a street or higher bonus that is paid on time go for it. Analysts either go 2-4 roommates and pay $1600-1700 or live alone and pay ~$2k. Rents went up 7-12% this year in the parts of Manhattan you would consider. Not paying a fee saves you at least $150/month over the year now, and more in fees/move costs/pain if you don't move again next year.
I haven't seen a liveable studio in Midtown for
This is really the only response so far that I agree with.
I'd also like to add that if you're doing 1800/mth with some roommates, sure you save $500x12mth = 6K/yr, but if you then take that 6K and buy a watch or do a couple wild nights of bottle service you really aren't saving anything at all and instead sacrificing living conditions for things that are truly unnecessary.
And while it's probably better starting out to get a roommate (simply because you can get a nicer apartment and pay less per person), 2300 is not "crazy" if you really want a studio, though you would probably need a guarantor to get approved and not make a lot of large unusual expenditures throughout the year. 2000 is probably a better price to aim for in your scenario.
This. This is the most accurate description of bankers paying $1,500 / month on rent.
i think living close to work as an analyst is absolutely crucial. i lived a ~15 min walk away and wouldn't have done it any other way. $2300/month seems high though - I did a walk-up studio for ~$1500/month, though a few years ago. if you aren't going to live with roommates, the quality of your apartment probably will be the trade-off. still, living in a makeshift bedroom carved out of the living room in a luxury building, with random roommates, isn't really much better in my opinion.
Way too many naysayers. It will be tough, but living alone and having your own space is worth a thousand imo. Just invite people to your place bro. Why go out spend money when you got a nice place to chill at?
I would suggest finding a roommate and living in a cheap walk-up somewhere interesting near the subway . Let me explain in a rational way:
Midtown is not a place for 22-year-old males to live. Better to live a 15-minute walk from a series of bars filled with young ladies than to live a 15-minute walk from your office. Note that in the morning, you will take the subway to work. Depending on where you live, this will be 20-30 minutes, max. You could probably do better. At 1, 2, 3, or 4am, you will be taking a taxi home that your employer will pay for. At that hour, almost any taxi ride from Midtown to another part of Manhattan will be 15 minutes or less.
There is no need to live in a "luxury building". Do you need a doorman? No, you don't - have packages delivered to your office. Do you need a gym in your building? No, you don't - if you are actually going to work out, you will do it near the office where you have a corporate discount and can also shower during the 48-hour workfest alluded to earlier. Do you need an elevator? If you are on a high floor, OK, I hear you. But I'm used to 4-story walk-ups.
As someone noted earlier, your take-home pay will be closer to $3,700/mo once you factor in federal, state, and city income tax, plus whatever else gets taken out for 401(k) contributions, etc. Spending $2,300/mo on rent puts you at $1,400 to spend on everything else, in a city that is wildly expensive to do pretty much anything. That $1,400 will be eaten up quicker than you think.
You think the OP is crazy for thinking about spending $2,300/mo on rent, I think you're crazy for spending $1,400/mo on everything else after getting free food basically everyday and paying ~$150 total on transportation.
If you're blowing $1,400/mo on non-rent expenses as an IB analyst, you're treating yourself to some serious luxuries outside of the normal course of expenses. In which case I'd say is at least fairly hypocritical to slam the OP for wanting to spend more on rent than you do. Life is a game of priorities. Some people have nice cars, some people have nice apartments, some people have nice watches, some people take nice trips, some people have nice wardrobes, some people have nice parties. In FO finance roles, you're usually fortunate enough to have multiple of those things, but it's still a matter of choice. Personally, I'd rather have a nicer apartment than a Rolex; but I know a ton of people living in junky apartments with $5k+ watches. That said, I don't spend $2,300/mo on rent either; but I can assure you that it's totally within reason, and someone who is more frugal with nights on the town can easily make it work.
And all of this is post- having 10% of your paycheck contributed to your 401k (assuming 5% matched) and saving ~35% of your all-in comp by not spending anything from your bonus. If you're 22 years old and saving ~45% of your take-home on a $120k+ income, I'd say you're doing more than well.
This. People are idiots for spending over a month's salary on a Rolex; just goes to show that people are always trying to live outside their means.
Nobody says you have to be tasked with finding an apartment and roommates either - go on craigs list, there are probably a bunch of people in your same exact position already looking for somebody to fill a room. You will avoid any broker fee because the person already lives there, and you can easily meet the person and see the place before deciding. The city is extremely expensive - but i would try and pay no more than 1800, you will be surprised how quick the money goes on other things, and i don't mean bottle service or other stupid expenses, i mean expenses that are unavoidable, food/beer/air conditioning your apartment in the summer/traveling/dates ...good luck with the job/finding a place to live.
the point above about taxis late at night is a great one as well
Given 70k, you REALLY shouldn't go over 2k
Watches are reasonably liquid assets. I would argue the expenditure is just the depreciation + insurance costs. After your first bonus you aren't really liquidity constrained. Its still a dumb prestige expenditure.
It's hard to spend $1.5k a month on non-rent unless 1) You have a long distance GF (international makes it worse, but potentially also more worth it) 2) You are going out every free night, and going bottles at least once a month
The same could be said for virtually any durable good - that's not an argument to spend unreasonable amounts of money on them.
I paid $2250 my first year out, same situation as you. Never noticed having any budget problems, but then again I never had much else I needed to spend money on. If the people who are saying it's retarded are arguing that you're leaving yourself very little room for teh modelz & teh bottlz then I'd say they are greater than or equal to that level of retardation. Then again I'm also not sure what bankers are making these days
You can argue that the $500 to $800 monthly difference in the analyst years which equates to $18K to $28.8K over three years is marginal in the long run. However, that's like spending almost an analyst after-tax bonus on rent.
That's assuming that you don't find other ways to spend that $500 to $800 living in a cheaper place. In my experience, analysts living in cheap apartments tend to spend a lot more on other things to bridge the gap.
Check your pms
I just quickly skimmed most of these posts and didn't notice anyone mention the 40x rent rule that applies throughout most of NYC. In order to get a 2300/month apartment by yourself with no gauruntor, you would need to make an annual salary of 92000 a year pre tax. At 70k, the numbers to you sound like they are going to work, but the management company wants to get paid. That's their main goal.
Also, where is your job? I can make it to midtown in 15 minutes from sunnyside in a decent size one bedroom for 1450 a month.
Most apartment complexes are fairly flexible on the 40x rent, especially in buildings where lots of people work in finance. But you're absolutely right on living the boroughs, it can be a lot cheaper living alone.
No pain, no gain.
It's doable, but you just won't really have much excess cash for fun. But then you can just focus solely on work...
Plenty of analysts pay this high for rent in New York. Especially if you don't want to bother hunting for better deals or want to live alone and close to work.
I paid 2050 my first year with no supplementary income. It's not crazy if you don't go out or drink that frequently. That was a bit more than half my monthly aftertax salary, excluding bonus.
wouldnt do it
I don't get how people see $2,000 or more to be crazy. It isn't optimal and I agree, get a roommate, but sometimes living alone is simply easier. I've had roommates and it gets old fast, especially if they fuck you over. NYC is a ripoff, plain and simple. I think it is best to just accept that now and pay for the peace of mind.
Of course all of this changes if you have a lot of student debt, etc. Save a little, but live your life. Put a chunk of your bonus away or prepay your rent. Get your wardrobe up to snuff and enjoy yourself.
Pass. That's 2/3's of your take home before bonus is applied. Unless you're independently wealthy... not worth it.
Check your math...
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