Price of living in Manhattan (New York, Inwood: apartment, renting, home owners insurance)

[LP640]

I'm planning on moving from Los Angeles.

About how much would it cost to live the "good life" in Manhattan? Assume I am putting two kids through private school, rent/buy a large 3 bedroom apartment, own and garage two cars, eat out, shop and travel, and enjoy the great things that New York has to offer.

Could that be done on $650,000 household income comfortably? Reading this forum makes it seem otherwise.

Thanks.

[AnesthesiaMD]

Originally Posted by LP640

I'm planning on moving from Los Angeles.

About how much would it cost to live the "good life" in Manhattan? Assume I am putting two kids through private school, rent/buy a large 3 bedroom apartment, own and garage two cars, eat out, shop and travel, and enjoy the great things that New York has to offer.

Could that be done on $650,000 household income comfortably? Reading this forum makes it seem otherwise.

Thanks.

You could be comfortable, but you would be far from enjoying everything NYC has to offer or "the good life" on that salary. In Manhattan, you would be squarely in the middle class. All the things you mentioned are very expensive. A large 3 bedroom alone could cost more than you can afford on only $650,000. At between 1K to 1.5K per square foot, your looking at 2 to 4mil plus monthly maintenance in a decent building. You might consider buying a 2 bedroom and adding a wall. Renting will cost a less, but you will probably be renting in an older building as most of the newer buildings are condos and coops. Plus private school for 2 kids will be at least another 40K per year. Eating out and shopping are very expensive there as well. The best restaurants can easily cost $200 per person or more, without much alcohol.

[Viralmd]

Why on God's green earth would you even WANT two cars in Manhattan? I've lived almost my whole life and the best thing I ever did was ditching the car when I moved back to NYC from my 9 month sojurn in Princeton.

Private schools START at 20K/year and go up with the grades. And it's not a simple task to get a child into one. You have to start a year in advance because the ERB test has to be taken.

You'll be able to afford an apartment, but depending on your financials, a condominium might be easier than a co-op.

[AnesthesiaMD]

Originally Posted by Viralmd

Why on God's green earth would you even WANT two cars in Manhattan? I've lived almost my whole life and the best thing I ever did was ditching the car when I moved back to NYC from my 9 month sojurn in Princeton.

Private schools START at 20K/year and go up with the grades. And it's not a simple task to get a child into one. You have to start a year in advance because the ERB test has to be taken.

You'll be able to afford an apartment, but depending on your financials, a condominium might be easier than a co-op.

Yeah, not an exaggeration. I have a nephew that just got accepted into kindergarten to the tune of 20K. He had to interview, take tests, be observed with other kids, etc.

The OP said he/she wanted a large 3 bedroom. A condo with that description may be a little tough to find on 650K per year unless they have a decent down payment saved up.

[Viralmd]

Well, without GOOD NY references, getting a co-op can be tough. And condos are much more liberal with down payments. My parents' co-op doesn't even allow mortgages...

[AnesthesiaMD]

Originally Posted by Viralmd

Well, without GOOD NY references, getting a co-op can be tough. And condos are much more liberal with down payments. My parents' co-op doesn't even allow mortgages...

Point taken. While you get more for your money when you buy a coop, they can be very difficult to be accepted by the board. Most want bank statements, some wont allow children, some are just very picky about the "type" of person they want living there. This is a double edged sword because it makes it equally as hard to sell the place as it is to buy it.

My point was on that salary, it might be hard to afford either coop or condo with the OPs description. He she will have to compromise on size or location. He she could definitely afford a large 3 bedroom in Brooklyn or Queens. On Manhattan, he/she would be relegated to north of 111. Areas like Harlem or Inwood. Or else a fixer upper in a non doorman building downtown, or something like that.

[Viralmd]

No, he could get a large three bedroom - they're usually starting at around $2,000,000.

[newtoli]

You could live comfortably. You would not be living the high life, but you should be able to get what you want. You might have to skimp a bit on apt size.

I bought at 4x my annual income, I'd assume that gets easier the larger of an income you have. Could get something around $2.6M easily. You could get something really great in Brooklyn.

[AnesthesiaMD]

I guess my idea of what home someone can afford is different than what other people feel is appropriate. At 650K, I would not want to pay a bigger mortgage than about 1.5mil. Especially living in Manhattan. You are in the highest state and local tax brackets. You should be maxing out your tax deferred accounts like retirement, 529s for each kid. Then you have to furnish the place, and your not going to buy furniture for your luxury Manhattan apartment at Ikea. Maintenance to the building can easily be another $1500-$2000 a month, not to mention property taxes and home owners insurance. Let's not forget the 40K++ to send the 2 kids to private school. Then there is babysitters, braces/retainers, and all the other things that come along with having kids. All at an inflated price because you live in Manhattan. There is eating out, weekends in the Hamptons, and other vacations where you have to buy 4 plane tickets and meals at restaurants. That 650K will be gone before you know it.

[AnesthesiaMD]

Originally Posted by newtoli

I bought at 4x my annual income, I'd assume that gets easier the larger of an income you have.

It doesn't.

You pay a higher percentage in taxes, and more is expected of you by your peers.