Comments (8)

Aug 2, 2010

Why does someone need to be an MD to buy a $4 million apartment?

Aug 2, 2010

what sort of income do you need to buy a 4 million apartment? 1/10 of property cost?

Aug 2, 2010
toiysam:

what sort of income do you need to buy a 4 million apartment? 1/10 of property cost?

a little more than that:

assuming you put 20% down, you have to service a $3.2 mm loan
assuming 6.0% interest and a 30 year schedule, you've got monthly payments of about 20k
that makes 240k per year in payments
assuming that you want to allocate a maximum of 50% of your yearly cash flow to servicing the debt, you need to pull 480k per year after taxes
that means between 900k-1 mm per year in earnings

Aug 2, 2010

Very big dowry.

Aug 2, 2010

dude's father was a democratic congressman and stole around $10mm....I dont doubt tht this dude has some money somehow

Reality hits you hard, bro...

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Aug 2, 2010

mmmm....
maybe he bought it with Chelsea... she is working at a hedge fund too...

i think people with that income dont buy apartments on a 30 years schedule... maybe 4 or 5 year term...

Aug 2, 2010

Yeah, she was at Avenue Capital. Imagine what a joke her interviews must have been, embarrassing to conduct.

And why would someone with "that kind of income" buy an apt on a 4 or 5 year term? That kind of income is $1M a year on a 30 year term and probably $3M+ on a 4-5 year term. Also keep in mind, your above mentioned calculation are not including real estate taxes and maintenance fees on a $4 million apartment.

What usually happens in these cases (wealthy kids buying lavish homes) is that they draw on their trust funds/family wealth to place a large enough down payment so that they can afford their regular expenses with their own personal income.

Aug 2, 2010
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