Currently paying $3.2K for a third-floor walk-up with good light (east + west), in-unit washer/dryer and free electricity.
Just had our first child and am thinking about splashing out on a tower in our neighborhood which would come with nice amenities + elevator. Total cost would be between $6,000-$6,400. The walk-up was fine when we didn't have a kid but now it's getting in the way of my wife leaving the house in the day given we need to lug down stroller. Would also meaningfully increase space from current ~650 sqft to ~1,100 sqft.
Wife is no longer working, will be an ASO3 at a large bank (IB, coverage) with average pay next year when our lease is up. Solid balance sheet as I went A2A.
If you can afford it, it's not crazy. You're a big boy. Make a budget and make a decision.
Based on the most helpful WSO content, your situation aligns with common considerations for professionals in high-demand roles like IB. A $6,000-$6,400 rent isn't necessarily "crazy" given your circumstances, especially in a major city. Here's why:
Life Stage and Priorities:
With a child and a non-working spouse, upgrading to a larger, more convenient space with amenities like an elevator makes sense. The added space (1,100 sqft vs. 650 sqft) and ease of access for strollers can significantly improve your family's quality of life.
Income and Affordability:
As an ASO3 in IB with average pay, you're likely earning in the $275K-$325K range. Many associates in similar roles spend $5,000-$6,000 on rent, especially when prioritizing comfort and convenience. This aligns with the idea that rent/mortgage shouldn't exceed $6K/month for someone in your income bracket.
Mental Health and Lifestyle:
A better living environment can reduce stress and improve mental health, especially with a demanding job and family responsibilities. As noted in WSO threads, having a clean, spacious, and functional living space is often worth the cost.
Balance Sheet Consideration:
Since you mentioned having a solid balance sheet, this upgrade seems manageable. It's important to ensure that the higher rent doesn't compromise your ability to save or invest for the future.
Ultimately, while $6K+ rent is a significant expense, it can be justified if it enhances your family's quality of life and aligns with your financial capacity. Life is about balancing priorities, and this move seems to reflect a thoughtful adjustment to your new family dynamics.
Sources: Life in General Will Cost More Than You Think, How much do you spend on rent as an associate making 275-325?, How Many of You Are Actually Happy?
NYC rents are crazy. If you were paying $3200 on IB salary and presumably splitting with your wife… I’m guessing you have over a million NW at this point?
You have plenty of room for error if 6k is too much - even if you get fired.
Nah not $1M but more like $300K. Unfortunately had some family stuff come up that ate into my early life savings so I missed out on a lot of the market gains over the last few years from spending to cover that + missed a bonus cycle. By end of this year should be closer to $450k. Either way not aware of many IB ASO2 with 1M NW lol
how old are you?
If your net worth is going to increase nearly 150K in 5-6 months, then it seems like you make enough to eat the additional rent. I'm unsure if that 150K estimate is based on a 3.2K or 6.2K rental, but it's a 35-40K difference on an already-high number. Either you add 100K+ to your net worth while having a noticeably better living arrangement for your family, or you add 135K+ to your net worth while staying in crammed quarters and carrying bulky items up and down stairs. If you actually feel like the more expensive apartment will save time and make your family's lives better, then it's a good move.
Have you looked into moving neighbourhoods as an option to save more money? Not somewhere sketchy but could be a bit more quiet with longer commute. ASO3 and VP years you should have a lot of flexibility to help
Honestly, it really depends on your lifestyle and where you are in your career. If that rent is eating up a huge chunk of your take-home pay and leaving you stressed about savings, it's definitely pushing it. But if you're in a high-cost city where that buys you a great location, helps you network, or just makes your day-to-day life way easier, it could be worth the trade-off. Just run the numbers to make sure you aren't sacrificing your long-term financial freedom just to have a fancy place to sleep at night.
I paid 5k as an associate 3 and then 6k as a VP. Your budget is doable, but a little tight imo if you have a kid and your partner is not working. You can afford it but comes down to if its worth it to you
yolo
I'm paying 6.5K in UWS. I was in your shoes before recent L+1 upgrade. It's going to be tight and you'll need to budget, but doable. Get a promotion or two and you'll have breathing room and can build savings.
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