Hi All,
I am starting full time in the Summer and was hoping to live alone. However, despite using all the income and housing affordability calculators online I am just not sure if it is affordable on a BB salary. I don't feel the need to live in a trendy area - I just want to be in Manhattan within a 25 min subway ride of Times Square area.
Generally speaking I live pretty frugaly so my discretionary spending is going to be on the lower side.
Can anyone with experience share their thoughts?
Thanks!
**OP UPDATE:** Got a no fee studio in the low 70s on the UWS for ~2200. That's close to the 123 and B train to run to times square. Thanks for the advice WSO!
https://www.rentcafe.com/average-rent-market-trends/us/ny/manhattan/
www.nyhabitat.com/new-york-price.html
You should be able to make it happen at 2k on the low end and ~2.5k for something a little nicer. UWS (maybe certain UES spots near subways to get you to Times Square in 25m) probably the best bet. That should be affordable given your comp imo.
Great - yeah I was thinking UWS or UES might work well from the research i've done thus far. If you have any other neighboorhood suggestions to look at, that would def be appreciated.
What do you want to do with your money and what other spending do you have (loans, savings, retirement contribution)? I'm a first-year analyst earning street and I pay just under $2200 for rent, plus over $1000 for student loans. I live close to work and switch between cooking and eating out, so my discretionary spending is pretty low. Can I afford to go out every week? No, but since I'm in the office most weekends anyway, it's not a big deal. I know not everyone agrees with this kind of lifestyle, but I've come to terms with not having much money left over. I figure the analyst years are going to be a grind anyway, so might as well pay a bit more to get an extra hour of sleep every night and get rid of my college debt early on.
Well said.
I think i'm pretty in line with your lifestyle. My loan payments are going to be around 400 without paying down extra principal... (which I figure i'll probably try to do). And I'm perfectly happy with living pretty frugally. I figure even when I have free time there are plenty of free / low cost things to do in the city. Out of curiosity, how much do you have to allocate to utilities?
Thanks for sharing your experience!
If your loans are only $400, you should be able to afford a place for $2500. For utilities I'm budgeting about $80 a month but it's usually less than that. Heating and hot water are included, and electricity/gas are negligible since I'm not home much. The biggest expense is internet, so if you can share with someone, you'll save a lot. Keep in mind that there will be a large up-front payment when you move in (landlords will charge 3-4x monthly rent for first/last month, security deposit, and broker fee). If you got a signing bonus, you'll be fine, but if not, you might need to borrow from someone.
Should definitely be possible to pay for a studio on a 1st year analyst salary. General rule of thumb is the 40x rule (annual income / monthly rent > 40x), but there are definitely ways around this (get a parent to cosign or somehow prove your bonus is certain, but this may be difficult for a 1st year). If you're going into IB though, I would not go overboard as you'll barely ever be in your apartment given your hours and general NYC lifestyle.
I'd shoot for low 2s for a studio in UWS, UES, hell's kitchen for easy access to time square. I personally pay ~$1600 for 3 bedroom 2 bath in hell's kitchen area and I have easy access to time square.
Thanks for sharing. Yeah I don't think I will have a cosignor (parents don't make the crazy amount that I read that cosignors need - my 1st analyst pay is more than their income) and they also don't live in state so I figure I'm probs on my own so I imagine that I will need to stay pretty firm at $2k or I probs won't be approved... since i am a first time renter who can't really prove potential bonus. Would you say that's accurate?
Yeah. $85k base / 40 = ~2100.
However, not all apartments care about 40x, you can talk to the landlord and try to convince them that your bonus (and signing bonus) will certainly push you over $2100.
In my experience, living close to the office makes your life a lot easier as an analyst. A 25-30 minute commute doesn't sound that bad in theory but can feel a lot longer when you're sleep-deprived or rushing to get to the office to work on a fire drill.
If your office is in Times Square I would suggest looking in Hell's Kitchen or Midtown East (both pretty affordable neighborhoods and would be easy commutes). UES has good deals on studios but the commute is much less direct and would require multiple subway lines. UWS is more affordable the further uptown you go (Manhattan Valley and Morningside Heights) but you're trading off a longer commute.
With the new Q line, getting to times sq from UES is way easier.
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