What is the downside (if any) of Chicago IB?
Recently i have started to get urge of wanting to buy a home.
I dont see myself being able to afford that in NYC where i am based rn. Same story in SF
I have worked in Houston IB before and asides from being pigeonholed into O&G, the city's charms wear off after a year. There isnt a whole lot happening or places to go to on a weekly basis asides from great food and bar scene which tbf any major city would offer. Some people love the city and while its not a place i would hate to live i dont see myself willingly moving back. Kinda sucks because it fits the bill of being a top tier IB city (energy) and one where i can buy a property.
Having looked at this it seems that Chicago is the only city which might fit the bill of i) a place where i could potentially afford a house and ii) is a happening city while also offering a IB experience. But is the IB experience top tier? Houston is as far as energy is concerned and SF is for example in tech. Is Chicago not leading in any aspect?
What are the downsides?
.
If OP were to buy a condo in the city, he'd save money compared to New York as Illinois has lower income tax, and luxury condos have significantly lower HOA fees in Chicago than in Manhattan.
Compared to Manhattan?
Pros: 64th and 65th
Cons: 63rd
We not from 63rd
I was a banker in NYC and Chicago and know many who did the same.
New York bankers move to Chicago all the time, but it literally never goes the other way. My life is about 100% better with the same salary and bonus but cheaper, larger (space-wise) and much cleaner everything else.
Chicago winters are 50 below zero with high winds and multiple feet of snow
Chicago finances are horrible, and so they will be raising taxes to the moon
High likelihood you might get shot driving thru certain neighborhoods
but otherwise....why would you leave NYC to goto chicago?
Everything you mentioned is worse in NYC.
While I love Chicago, there is no denying that crime is worse there than in New York
You think NYC winters are worse than Chicago winters?
What are you, a penguin?
People don’t understand how much cheaper Chi is vs other big cities (NY/SF but also places like Boston). At NY office of a Chi bank (you can probably guess which one…) but analysts make street in Chicago and live like kings. I know analysts that live in the nicest buildings in 1 bedrooms for 2k a month, while I’m in NY paying 2k for a shoe box with 3 other roommates. I’m planning on moving to Chi eventually just for that reason
Cheaper? Maybe. Cheap? No sir.
Deadass. Analysts can legit live in the absolute top buildings in the city. It's crazy.
MM PE
MM PE sounds pretty good when I hear all the negative things about MFs. Plus, even if you're in NYC, how many analysts actually land at MFs?
Lori Lightfoot
Obviously biased but I love Chicago. Random thoughts below, good and bad
Can get to any nice lake/beach town in Michigan/Indiana in less than 2 hours. Vacationed there a few times and it's pretty nice.
If you're an outdoors-type, Wisconsin is also popular and nice with easy access from Chicago.
Bingo. Tons of lake/beach towns to keep you busy all summer, plus Wisconsin and Michigan are two of the best states in the country for high end affordable public golf courses.
Chicago has a pretty solid industrials IB scene - it's not like Houston where they run it exclusively, but many banks have industrials teams out there. Automotives in particular are mostly covered out of Chicago.
If you otherwise like NYC, have you ruled out living towards NJ/CT? There are more affordable areas which are commutable if you're only in office 3 days a week.
lived in fairfield county until i was 17. if your only goal is to save money and buy a place, don’t do it. the only affordable towns with 1hr commute are stamford and norwalk. my parents made that move from nyc, but it only makes sense if you’re about to start a family. dating scene will be rough. forget about buying a place in one of the nicer towns unless you want to live in apartments/condos where your neighbors are retirees and families with school-age kids. those would still run you close to $1m. not to mention you still pay ny state tax, not sure about nyc tax.
Lol definitely agree not Fairfield County, thinking like NW Jersey, the Jersey Shore area that's commutable by ferry, Westchester, Stamford. Those aren't city living but you could stay in NYC and own a small house if that's your perogative
Chicago is just about the last city I would want to be in long term, particularly as a place to buy a house/condo. The tax/pension situation is FUCKED, and in all likelihood they will have to declare bankruptcy at some point, which isn't a great situation to be in for someone who's planted a lot of money into an immovable/illiquid asset there. You can already see this situation begin to manifest in the pseudo-taxation schemes they've begun to implement like tons of traffic cams who's sole purpose is to generate revenue for the city. This of course, is not nearly enough for their problems, and they'll likely have to dig deeper in the impending future. As a young person with lots of disposable income working in an already disliked industry, you are the one who's gonna be dug deeper.
Edit: This comment from reddit sums up the city's fuckedness fairly well:
Yeah this is all true. My old director used to rant about this all the time. We would joke and tell him to run for office and he adamantly said No because it was such a mess and pretty much unfixable.
The state might implode—however, there is a decent bet to be made that there is federal intervention or some sort of bailout rather than continuous tax raises and the whole state getting screwed up then a bailout. The problem is too great to be resolved through tax payers, so the question more is will reform happen after people leave and how long will it get worse before it gets better? Also, I would argue as wealthy people leave it’s going to tank property values and begin to give really affordable housing in good areas.
There’s a bet to be made I feel like, might be that the state sucks for the next 5-10 years but 10-20 it isn’t bad.
Oh wow. Here’s a guy whos giving actual on the ground specific response to the themes in the Original post
Move to Northern Queens (North Flushing, Bayside, College Point, Whitestone) or Southwest Brooklyn (Dyker Heights) if you want to stay in NYC and really want to buy a home. I know plenty of people who live in these areas and commute in (including my parents who both work in Midtown). You can live in NJ/CT but really is not the same as living in the Boroughs. The properties will be more expensive but they also appreciate significantly more e.g my parents bought a 4 bed home in Whitestone for 1.25 mil 10 years ago and could sell it today for 2.2. Great schools particularly in the Northern Queens area.
I work for a BB and really enjoy it here. I don’t get the whole IB experience. Our team is incredibly lean and it’s just one coverage team and no product teams. We cover industrials, automotive, etc. We don’t have the resources like NYC and generally have to jump through some more hoops. I work NYC hours which is good and bad. I’d say it’s more laidback in Chicago too. Not as intense as NYC. One of the biggest perks is definitely cost of living. I live in 2,000 square foot apartment with 2 roommates in a great neighborhood close to downtown. We have 2 parking spots, free street parking, a front yard, and back yard and only pay $950 each. My pledge brothers live in closets in Manhattan for much more. Taxes are high, but so are NYC’s. Bars are cheaper generally. Lake Michigan is cool for the summer and there’s a ton of cool places in like Wisconsin. A quick 2 hour flight to the Rockies for less than $100 to go skiing. Tons of cheap and affordable golf courses. As for the city itself, there’s a BUNCH of kids who grew up here. They make up most of the population imo. Crime isn’t that bad. Just don’t go too far south or go too far on the trains or pass out on one. It’s definitely cleaner than NYC. You don’t get the big city vibes as much as NYC.
Overall, I like and have been here two years. I don’t really have any plans to move for a quite some time. Happy to answer any questions.
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