Single VPs / Directors how much do you pay in rent
/ what kind of place do you have? Probably on the cusp of buying but maybe 1-2 years away. So debating what kind of place to get now. I can spend 4-5k on a shitty 1 bed and save some extra but I have the right amount socked away that in another 2 I’ll be ready to buy no matter what with cushion left (saving maybe speeds it up 3 months).
So debating basically just sending it and getting like a loft penthouse in soho with a terrace and spending 10-11k. Curious what the market is doing.
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The whole consideration set isn’t comparable when married or taken. Like I have no costs he may be paying for her life etc. I’m debt free have saved a decent amount. And comp now is in the high 6 figures with good line of sight
I don't want to get too detailed for privacy reasons, but his fiance is not in a high paying job. He essentially pays for all of it. My apologies if this isn't what you're seeking.
You may as well just buy an apartment and then pay off your monthly mortgage at that point.
Then resell and make a return on your equity.
No point of spending $6-7k in rent / month
Not sure why you're getting downvoted but I'm paying 5.5k a month and I will be buying a place because there's no way I'm stomaching paying someone else the equivalent of a 100k of my pre-tax income a year for zero equity. I already own a place in another city so will just sell that and use the equity for my downpayment. Once you factor in property tax and common charges though, that's an extra 2k on top so basically on an apples to apples basis, it's 5.5k a month in rent with zero equity contribution or $7.5k a month for the same place with a portion of that going towards equity. Importantly, for the first couple years, you're paying significantly more interest than equity but based on my calcs, you're breaking even with renting around year 3 (assuming minimal capital appreciation of your equity) and then it pulls away.
You think you can get the same place paying equivalent rent to mortgage with rates rising outpacing rental yields?
renting vs buying in nyc is roughly a break even proposition depending on alternative investment returns and appreciation assumption on the house.
Are you in nyc - nyc you will have to pay condo/co-op fees and property taxes, which can add a ~20-30% to your monthly cash outflow. These does not go to building equity.
Getting downvoted because this shows a lack of understanding on how money works. How much you pay in rent vs. buying a place, in a vacuum, doesn't tell the story. Paying $6k-$7k in rent does make sense if the alternative is buying a $2.5m apartment. Sure if the alternative is buying a $1m apartment, then do that. All else being equal, if you're living in a generally equal place, the buy vs. rent argument generally comes down to how long you'll stay there or non-economic points.
Also, buying in NYC is generally seen as a worse financial decision - values don't always go up and you have to pay high maintenance fees in addition to actual maintenance in the apartment. And any work you want to do in your apartment generally costs 2x as much and takes 2x as long
wife is caring for our child this yr and not working so i'm on the hook for $7k a month in rent. It sucks and ignoring my bonus, cash flow feels tight versus splitting rent. Try stay at 5k for nice 1-bed and sock away money for 2 yrs to buy IMO
$4k for a 1 bedroom building with a doorman on UES. I will likely buy in the next 12-18 months
Close to $7k. White glove co-op building in a top-tier area though.
As much as people will say stay around $5k, a lot of the places in that price range are extremely dumpy (talking 5th+ floor walkup, no laundry in building, extremely old appliances), and still spark massive bidding wars.
Buying can be worth it, but it doesn't make financial sense to buy a ~$1.5m 1 bedroom if you're planning to have kids or leave the city in 3-5 years. It's not a breakeven once you consider closing costs, mansion tax, lawyer fees, agents, etc - if you're buying a 2 bedroom you'll have for 10 years, sure. Otherwise the math doesn't work.
Basically I’m not buying in NYC area until my wife makes me
My director spends $12k a month for his apartment in Brooklyn for him and his family. Wife makes way less than him
Would suggest using the NYT calculator (below) that factors in a bunch of other factors (HOA, maintenance, broker fees, inflation, opportunity cost on invested capital on down payment, etc.). Math evens out much more than you'd think for an urban 2BR rental.
https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
lol i'm paying 1.1k / mo for rent as an intern we should apartment swap
How many roommates?
Also is it a flex?
Not exactly what you asked, but I wanted to provide another data point. I’m a VP1 living with my girlfriend in Williamsburg and splitting a $2,750 per month 1BR ($1,500 / $1,250 split). It’s just a basic apartment, nothing fancy, but it serves its primary purpose. There is definitely some middle ground between what I’m renting and what you’re considering at the high end, but in the long-term I think living below your means is a better approach if you are renting and ever want to get ahead in NYC. I’ve had MDs whose primarily residence is a ~2k sq ft raised ranch on Long Island. It gets a lot harder to save once you are supporting a family and that’s just not the type of house I aspire to have if I’m grinding away in banking for 2-3 decades.
For what it’s worth, I’d consider spending $5-$6k in Manhattan if I were still single. The issue is even within that price point it doesn’t get you anything “exciting” and probably just ends up feeling like a money pit - which leads me back to spending less and renting something more basic and / or outside of Manhattan.
That's a lot of $$$.. I've moved to the suburbs and pay a mortgage. There is a lot of middle ground between the two options you've presented here but if you can plan to stick around for at least 3-4 years my vote would be to buy.
These numbers are crazy. Not sure how you guys do it.Sharing my stats for context:
I'm an Assoc 2 in a T3 city and pay $3,500 on mortgages for two properties. Married as well and wife makes $50k.
Primary - $2,000/m. 2,200 sq ft 4 bed 3
bath
Rental - $1,500/m. 1,300 sq ft 2 bed 2 bath
Rental kicks off $1,600 a month too so out of pocket only paying $1,900 a month and building about $2k each month across both properties
What is considered a tier 3 city?
Atlanta, Houston, Charlotte etc
Sometimes I forget I live in a low COL tier 3 city.
Pay 3k for a 4bed 2.5 bath house 15 mins from the office downtown.
Thanks for reaffirming my choice to avoid NYC lol
Makes sense if you’re married but I’d shoot my self single outside miami nyc la and maybe Chicago. It’s like indescribable the difference
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