New to NYC, Can I afford this??? (car rental, apartments)

[mhgebo]

I'm moving to NYC because I am starting a job with Ernst & Young making a starting salary of 60000 a year. I'm trying to figure out how much apartment I can afford because I don't really have any idea of the living expenses of the city.

I found a 1 BR apartment in LES for 1750
And 1 BR apartment in East Village for 1950 (I love this one)


Will 60000 a year leave me enough money to pay for a 2000 apartment. What's your guys opinion??

My budget

Food 240
Public transit 89 - Monthly pass
Cable/Internet 110
Utilities 85
Cell phone 80
Night life 400


Does this budget sound reasonable?? What do you guys think.

Thanks for the help,
Mike

[bluedog2]

Sounds like you have allocated too much for rent and not enough for everything else.

I wouldn't spend more than $1,200 on rent with an income like that. You will probably have to get a roommate situation if you want to live in Manhattan or consider another borough if you want your own apartment in a decent neighborhood.

500 Food
150 Transit
130 Cable,internet
100 Utilities
90 Cell
500 Night life
200 incidental expenses
500 savings

Estimated net monthly pay 3,400
....................................-2170 living expenses
.................left for rent...1,230

Obviously,sharing some expenses with a roommate would have a big impact(help)

Most Manhattan landlords insist that income be at least 40X the rent.In your case that's 1,500 so you will find people willing to rent to you for up to 1,500/mo but I wouldn't advise doing it because everything else would be too tight and probably zero savings.

[mhgebo]

Yea a roommate would be a huge help but I don't know many people in NYC yet. Living with a random kinda worries me. Do you have any idea where i should look for a roommate?

[Henna]

$1500 max for rent using the salary / 40 rule.

Where did you come up with $240 for food? That is $8 a day, barely enough for a sandwich at lunchtime.

[Henna]

Originally Posted by mhgebo

Yea a roommate would be a huge help but I don't know many people in NYC yet. Living with a random kinda worries me. Do you have any idea where i should look for a roommate?

I thought Ernst and Young was a big company - isn't there a network of young people already there or about to start at the same time you are starting?

Also, $1200 or $1500 is enough for a studio in many non-Manhattan neighborhoods.

[TurtleCreek80]

You only qualify for $1500 rent based on NYC landlord guideline of 40x monthly rent = salary.

And no, your budget does not look right at all. Here are some tips:
1. $1500 max for rent. Welcome to NYC- if you are single, you'll be living in a studio not a 1Br. If you want a better/bigger place, you need a roomate. Ask the director of your training class if other trainees are looking for a roomate- that's how I found my very first roomate. Or send an email to recent grads from your school to see if anyone has a friend of a friend. 90% of people in their 20's living in Manhattan have roomates.

2. No money budgeted for cabs or car rental. You will not use mass transit 100% of the time. Put at least $100 a month aside for cabs- it will go quickly.

3. No money budgeted for laundry ($30 if you do it yourself, $50 if you send out), dry cleaning ($75-100 if you are business casual, more if business formal), haircuts, toiletries (everything like toothpaste costs 1.5-2x more in Manhattan).....do you need a new work clothes wardrobe? It can cost a ton your first year even if you're shopping JCrew and Banana.

4. No gym membership- will you want one? $80 min.

5. No lunch money- or is that coming from your $60/week for groceries? I'd bump that to $400/mo.

6. $400 for "nightlife" will go fast if you plan on partying it up. Buy a drink for yourself and a cute girl and it's easily pushing $15-25 a round. $15 is two beers. A dinner date is easily $80-100++. Dinner delivery is $15-20. Splitting bottle service with your hard partying work friends-> $100, min.

My point is that NYC is incredibly fun, exciting, and incredibly expensive. $60k is the threshold for being able to enjoy life IF you can keep the fixed living expenses under control. I'd highly recommend finding the smallest/cheapest place you won't feel claustrrphobic in & lease it. You could easily pocket another $5-6k a year for more partying, travel, and life's unexpected expenses.

[mhgebo]

I've been looking at a couple studios in Gramercy and the east village for 1400. Would that be more reasonable and let me live a slightly more exciting life style? For 60,000 a year, what would be ideal for me to be paying for rent.

[Henna]

Originally Posted by mhgebo

I've been looking at a couple studios in Gramercy and the east village for 1400. Would that be more reasonable and let me live a slightly more exciting life style? For 60,000 a year, what would be ideal for me to be paying for rent.

Yes, $1400 is more reasonable, but you don't know what the apartments are really like until you see them in person. Have you seen them in person or are you just looking online?

I imagine a $1400 apartment in a desirable neighborhood like Gramercy either

1. doesn't exist or
2. has some issue with it that you may not be able to live with (i.e. faces a brick wall, or is so small you can barely turn around in it)


Of course looking at listings online is useful to some degree before you arrive in town, but I would advise you to do more research on other areas outside of Manhattan that are cheaper, or think more seriously about a rooommate situation in Manhattan.

[mhgebo]

Where would you recommend outside of Manhattan? Anything in NJ such as Hoboken or JC?

[Chava61]

You might want to consider Astoria in Queens.