1.5mm NY Apartment - How Long to Buy?
Saw this beautiful 1.5mm loft down in Tribeca. I swear it was the size of a small store. 2k square feet. Industrial. Huge windows. The dream. It got me thinking as to what level in IB could a person swing it assuming like 30-40% down? Assuming the down payment came from parents at 40%, at what level could a banker pay that mortgage if no kids and no wife?
You can't do this calculation yourself? What info do you need the comp scaling?
Is this what happens when parents give you $600K toward a house?
(Just kidding man, whatever makes you happy)
Use a mortgage calculator, it is going to depend on a bunch of factors:
1) real estate taxes
2) HOA fees
3) any other debts you have
4) the interest rate you are able to secure
If you get $600k from parents just look at what the monthly costs would be for a $900k mortgage (add in taxes and HOA). Then decide how comfortable you are with that spend at different income levels (taking into account how much is base vs bonus, as you are seeing this year bonus isn't a guarantee).
You are probably looking at $7-8k monthly payments (making a bunch of assumptions on the HOA and taxes) so you probably need $350-400k to be ok with that (that would be my absolute minimum).
600k is a lot of money. Would put it in an index fund and rent the NYC condo. Trust me, they don't appreciate in value....
Most condo owners breakeven on carrying costs when renting.
If you're so keen on buying real estate, buy a fourplex or something.
I don't mean to have the rent v buy debate here but for something as high as 1.5mm wouldn't you be better off buying if this was a place I wanted to be at for the long term? Or is it really just associated/monthly costs in buying something like this doesn't equate to the multiple rise of the past
Costs to hold > greater than appreciation.
Friends from college bought condos in the 2-3 mill range when I graduated. Those condos haven't appreciated since; some have lost value.
Makes sense if your parents are 9 figures or whatever, otherwise it is dead money.
Nyc isn't a place to bet on appreciation, especially with the high costs (HOA, etc). I bought because I don't want to be forced to move and want a home for my family. I don't expect any appreciation (or at least anything all that meaningful).
Have friends in LCOL cities, that bought homes in the 1.5mm-2mm range as VP's. Lot more tax and fees when considering NYC
If you found a 2000sf apartment in tribeca for 1.5m you should buy it. That's a sweet deal. All in you're probably taking 10k per month.
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