How much to spend on rent?
Wondering how much everyone here spends on rent relative to income? I'm moving to NYC from a relatively cheap city (think Cleveland, San Antonio) and want an apartment with a decent amount of space like I had before. Is spending ~$4,375 on rent when I'll be making $350K guaranteed (50% bonus, 50% base), excessive? Curious to hear what other folks think here.
It's not excessive, but do you know about the different neighborhoods and your preferences?
go check out the artistic hobbies/side hustles thread, it wouldn't let me tag you in it for some reason. in off topic
ok
Yeah I've settled on living in midtown south/chelsea. The area is solidly safe, but not the trendiest. I'd rather have a nice apartment in a nice bilding than paying for a pre-war walk up with little light in a trendy neighborhood.
It would be for me, but you do you. If you're going to spend that much, make sure the neighborhood has the things you want. I did find this 2 bed/1 bath unit in the West Village for about 3k a month https://streeteasy.com/building/228-west-4-street-new_york/21
5 floor walk up tho
Great daily exercise.
Make it $10k chief.
It is about half of your monthly take home (after taxes but before bonus). Only you can answer if that’s ok for you (do you have loans? How much CC spend per month? Going out? Travel?). When I was at that income level I was spending closer to $3k a month, but again, if you want a nice place, like spending time in your apt, etc and don’t have many other obligations you can afford it. NYC is expensive so that isn’t really a crazy amount to spend, but things will feel a bit tight until bonus time.
After rent, health insurance, 10% 401k contribution, student loan payments - it leaves me with about ~$3K each month. I think that's a fine amount considering I'll be working 70-100 hours each week with work covering many of my day to day expenses (e.g. meals). Probably won't have much in terms of savings during the year though.
This advice aged well. Definitely a pain whenever I have a big expense pop up, but I do appreciate living in a solid place.
I'd say it's on the higher end. Keep in mind that NY has state and city taxes and everything in general is a lot more expensive. So your 350k salary in Texas would mean you live like a king, whereas in NY, yeah you're making a ton of money, but a lot of it is going to be spent and it won't go as far. I'm an analyst making half of that and what most of us do is spend our base salary, maybe save a little here and there, and save our bonus. I'd recommend doing the same. Spend like you're only making your base. And then when your bonus hits save some of it, blow some of it, do what you want. And given that, ask yourself is 4400 too much on a 175k salary.
With current rent discounts, you can get a nice place for at least $1k less. Don't spend money just for the sake of spending money. Try to get a great deal for the $3,300 - $3,500 range and I promise you'll end up happy.
There are deals to be found in the multifamily market. When I tell people how much I pay in rent, how new the building is and and where I live, they are shocked. I just found a really good deal for my area
Discounts are donezo in NYC, there's a lot of demand from people moving back to the city and little supply coming in because nobody signed a lease in June 2020
Interesting, haven’t kept up with the market
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