Manhattan Apartment for 1st Year Associates
Hey gang,
A friend of mine is going to work for a BB as 1st year IBD associate this summer. She asked me about how much to spend on rental apartment would be appropriate. She is paid street, something like 100K base + 40k sign-on bonus. You guys have always been my source of wisdom, so would you care to share how much $$ or % of annual income would you spend on your apartment?
Also the bankerella wants to live a safe neighborhood within walking distance from her midtown office, so probably Midtown East and Murray Hills. Is this doable?
Thanks for shedding some lights on this in advance!
She could probably go as high as 3 a month. It's doable in those neighborhoods, is she ok with a studio? The less you spend the happier you'll be, the closer to the office, the happier you'll be, she needs to balance those two factors.
Also needs to balance student loan factor, although you are bumped to 125K by 6 month grace end.
You should just try to find a roommate. You can get a solid 2 bed at 2k/mo. I think walking distance is overrated. I'd much rather be a 15 min subway ride away than a 10 min walk away. The walk is miserable in the snow/rain. You'll want to cab it those days and cabs will be harder to find. Additionally you cab it back at night anyways.
Just an assumption here, but let's say she's a post MBA grad. She'll probably be 28-31 years old, on average. At that age, unless you have some great friends/roommates, wouldn't you want to have your own space? (Of course, I'd like to stay with roommates as long as possible to save some dough, but just saying).
At 100k base, I feel like she could get lucky and snag a 1 bedroom for about 2500 if its somewhere un-fun like midtown east.
I'm an apartment hunter too but from what I've read, tenant should not pay more than 30% take-home pay, that is minus taxes and maybe other financial obligations like loans.
@Oxon She can safely spend annual salary divided by fourty not including utilities. Most luxury buildings in NYC will require a salary that is fourty times the monthly rent, and some buildings even require fifty times the monthly rent. With a gaurantor this requirement is usually dropped. So in this case, $2500 would be fine. She could find a studio for ~$2.2k in FiDi, E. Village, W. Village and other downtown areas but a roommate would be a much better option because you can find a great 2 BR for $5000 compared to a mediocre studio/1 bedroom for $2500.
FYI, I live in a sizable 1 bedroom in greenwich/west village for only $2200/month. It's all about timing and luck when looking for apartments. You don't have to live in an unfun place like Midtown East to have a nice 1 bedroom.
Thanks guys! Points well taken. I will forward this thread to her. You guys are awesome!
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