Base Raises Are Basically Meaningless Now
What the title says. This applies more so to NYC, but with runaway inflation I feel like we are right back to where we started with how much your comp can actually buy you. Rent prices are out of fucking control in Manhattan, food prices up, clothes prices up - it’s all way up. Sort of a depressing thought considering when these base raises happened, I considered it to be a decent amount of extra money, and now I am going to have to move out of my current apartment in Manhattan because I legit cannot afford it after they raised rent - even with the salary bump. Shit sucks boys.
In a similar situation to you. Gonna have to move to Brooklyn/Jersey if I want any shot of finding a reasonably priced studio/1br.
It really makes you think though - if finance kids are having a tough time finding apartments and make far more than the average person, who tf is moving into these places???
Shit is just so out of whack right now in NYC
Even Jersey is $2500 min and nearing $3k. Soon everyone will be commuting from Newark.
Real estate bois are ruining everything lol. Such weasely little scumbags that couldn’t get a real finance job. Sure, keep on jacking up prices and checking Redfin and Zillow or whatever tf you guys do
I went to a concert last night and was randomly talking to the guy behind me in the coat check line. Guy was telling me he buys up properties and then rents them out on AirBNB. I asked him how he learned how to do this and he straight up told me, "I just took a course online, they give you the spreadsheets and you just plug in the numbers to see if it's a good deal". Kept a straight face and just nodded.
Real estate is the newest sidehustle meme after shitcoins and amazon dropshipping. Seems like everyone and their uncle is involved in it in some way or another. A lot of dumb money "entrepreneurs". The rugpull will be interesting.
Shit like this makes me so glad I’m doing IB in a LCOL city
How can you not find an apartment with a $175k base salary or higher?
you take home $8k/month after NYC taxes assuming AS1.
sounds like restructuring associate boi is headed towards his own bankruptcy
Sounds like people want to save? Maybe thinking that just because you make 8k month after tax you should be spending 4k in rent is exactly how you go bankrupt…
No idea how anyone on this website has such shitty financial planning skills lol, I pay $2,600 for my studio UWS and I think I have more than enough money for rent? Do you guys just waste money on going out too much or something?
oh lol i don't contribute to 401k, think it is a waste in opportunity costs.
Median annual income in Manhattan is like $55k and you're crying on $175k base? LOL sounds like you're just fucking retarded, bro.
do you think why they raised the base? to account for inflation. it wasn't supposed to make you richer. just a market adjustment due to inflation. everybody knew inflation will be crazy once Fed started stimulating economy in mid 2020.
Banks gave you a 15-20% salary raise. Thats before your bonus which also went up. I am sorry there is no way inflation went up beyond that.
Instead of saying “man if its tough for me, imagine how the service staff, doorman, etc are surviving in this city and maybe I should give .5% of my salary to more tips/charity.” Nope lets cry for the dude who with highest raise, future prospects and best salary out of school must be struggling.
Think some of you got too used the post COVID rent drop. Rent is slightly higher than pre COVID but not that much more. Market is basically normalizing. Also during rent drop, bunch of people who had no business living in Manhattan moved in (or got places of their own). They need to cycle out of leases. Then we will be back to normal. $2400 for FIDi studio was obviously abnormal
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Lots of misinformation in this thread. First of all, institutional ownership helps rental prices. Look at occupancy rates of properties that are institutional owned. It's in their best interest to rent them out at highly liquid market rates. If anything, the foreign buyer who buys property and leaves them empty are the ones causing the issue. Even so, both of these ownership %'s are TINY compared to the overall market. As someone already stated, it's mostly due to under-building and city zoning laws which keeps supply relatively low versus demand.
Also, like someone else said, you weren't meant to have a $2,600 studio. Lots of people moved to Manhattan during covid and now that trend is reversing. My friend had a studio back in 2008 and it was $2,900. 2020 is not the benchmark. There are lots of people suffering in NYC and the people on WSO are not the ones to feel sorry for. Get roommates or move to LIC.
This isn’t meant to be an “I told you so post” but it is reaffirming what I thought when I was recruiting for post-mba IB a few years ago.
Lot of my friends and peers could not wrap their heads around some of us who recruited for non NYC locations. They also could not believe that we get paid the same nominal amount.
I was leaving school aged 29, not young 20s and saw the writing on the wall. Picked a city where I’m paying 2,200 per month for a 1,600 square feet 2 bedroom loft, 10 minute walk from my office. Food, going out, everything cheaper here.
There is zero doubt that I’m missing out on some aspects of IB but there’s also zero doubt that I’m putting away 30-40% more and for however long I last in this gig that makes a massive difference compounded over even a couple of years.
Totally respect the NY scene but if (particularly post mba) you’re actually looking to “get ahead” and build wealth comfortably it’s not the place to do it right now.
Go somewhere else. The lateral market is hot. Don't waste ur time working at a shit firm that won't pay its people. Also, out them so other people know