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Old 07-23-2018, 07:02 AM
 
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one of the problems is that the investment world has lots of mantra's for all sorts of things . most are wrong and not good advice but non the less there are plenty of them .

the spending side has very few mantras that really are actionable or mean a darn thing .

live below your means is my favorite meaningless mantra . it means nothing as means changes as do expenses .

if things go badly and you need to cut back , if everything is a need then there is no where to cut back , even though you certainly may be living within your CURRENT MEANS

what is really important when spending is the ratio between discretionary and non discretionary spending .

for the same budget we can live in manhattan vs queens , but in queens that ratio is pretty healthy . we have lots of discretionary spending we can cut back on if need be . living in manhattan that ratio would be terrible for us even though both are below our "means" . but means can change with an extended market down turn so that mantra means little .

i think the fidelity chart i posted is a step in the right direction as it attempts to hold at least 30% in discretionary spending which is comfortable . remember , eventually one of the big three gets most of us , illness-divorce - job loss . all three are means changers .
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Old 07-23-2018, 01:15 PM
 
581 posts, read 547,850 times
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Quote:
Originally Posted by mathjak107 View Post
one of the problems is that the investment world has lots of mantra's for all sorts of things . most are wrong and not good advice but non the less there are plenty of them .

the spending side has very few mantras that really are actionable or mean a darn thing .

live below your means is my favorite meaningless mantra . it means nothing as means changes as do expenses .

if things go badly and you need to cut back , if everything is a need then there is no where to cut back , even though you certainly may be living within your CURRENT MEANS

what is really important when spending is the ratio between discretionary and non discretionary spending .

for the same budget we can live in manhattan vs queens , but in queens that ratio is pretty healthy . we have lots of discretionary spending we can cut back on if need be . living in manhattan that ratio would be terrible for us even though both are below our "means" . but means can change with an extended market down turn so that mantra means little .

i think the fidelity chart i posted is a step in the right direction as it attempts to hold at least 30% in discretionary spending which is comfortable . remember , eventually one of the big three gets most of us , illness-divorce - job loss . all three are means changers .
Thanks, mathjak107! why do you think that living in Manhattan would make that ratio terrible? is it because Manhattan rents are more expensive? or is it because living in Manhattan costs more in general? food, clothes, etc...

I would say that one could live in a pre-war building in Manhattan, paying the same rent as someone who lives in a nice building in a safe area in Queens. Other expenses like food, clothes, etc.. can be cut down with some planning. Queens now has become expensive. I have looked in Ridgewood and other areas that are relatively safe, and the prices are very high.
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Old 07-23-2018, 02:30 PM
 
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the areas i would want to live in up by central park are way more than here in bay terrace . the general cost of living is much higher . we are also retired and use our car daily and keeping a car in manhattan can be a big expense. our rent stabilized tenants who live in apartments we own since the 1980's pay a very very low rent for the area and it is more then what we pay here in queens and there rent should be almost 60- 80% more .

unfortunately we can't get them out and if they did leave i would have to buy out our partners at market and it would no longer be a bargain .
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Old 07-23-2018, 03:34 PM
 
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Originally Posted by mathjak107 View Post
the areas i would want to live in up by central park are way more than here in bay terrace . the general cost of living is much higher . we are also retired and use our car daily and keeping a car in manhattan can be a big expense. our rent stabilized tenants who live in apartments we own since the 1980's pay a very very low rent for the area and it is more then what we pay here in queens and there rent should be almost 60- 80% more .

unfortunately we can't get them out and if they did leave i would have to buy out our partners at market and it would no longer be a bargain .
I know it is hard for rent stabilized apts owners to make profit. Anyway RS is a thing of the past. There are very few left. I have tried to find a RS apt and I couldn't. I am trying to find a long term solution to my housing problem. I rent so every 5 -6 years I have to move out and find another place.

I looked at the fidelity chart that you posted. I don't think that I can cover my rent and necessities with just 50% of my net income if I rent the apt mentioned in this thread.
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Old 07-23-2018, 05:06 PM
 
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that is where you are wrong , there are more than 1 million stabilized apartments . it is rent controlled apartments that are a rare breed . just about half of all nyc rentals are stabilized .

it is not hard for owners to earn a profit . those who buy stabilized apartments buy them factoring rent roll . we have two rent stabilized co-op apartments over looking central park for sale to investors for 50 cents on the dollar .

whoever buys them can wait things out at break even rents and then see a 100% profit at todays prices . if the apartments go up over the years even better profit .

Last edited by mathjak107; 07-23-2018 at 05:15 PM..
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Old 07-23-2018, 05:34 PM
 
581 posts, read 547,850 times
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mathjak107: how do I find those rent stabilized apts? Do you think a broker would help? And would you tell me really quick the difference between those and the rent controlled ones? Also, I heard that RS apts are usually higher in rent because obviously the owners assume that any tenant who is looking for one of those is actually staying long term. Thanks!

I still would like to get your opinion. What do you think of spending 38% of net income on rent? According to the chart you posted, I would have 12% left for other necessities which I doubt would be enough. My job doesn't pay much and I don't have a good retirement plan either. I know I have to save as much as I could but at the same time I am trying to make a balance and enjoy a little in life.
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Old 07-23-2018, 09:05 PM
 
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Why didn't anyone warn me to make some popcorn before I read this thread
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Old 07-23-2018, 10:10 PM
 
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You can do a keyword search on StreetEasy for “rent stabilized” but most of those will come with some kind of broker fee.

I read through this whole thread and the 2009 thread and found the whole thing fascinating enough to make an account to ask...where did you end up in 2009? Bay ridge seemed like the best safest choice (fiscally and otherwise). I’m super curious.
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Old 07-24-2018, 06:24 AM
 
64,577 posts, read 66,100,109 times
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Originally Posted by safina1 View Post
mathjak107: how do I find those rent stabilized apts? Do you think a broker would help? And would you tell me really quick the difference between those and the rent controlled ones? Also, I heard that RS apts are usually higher in rent because obviously the owners assume that any tenant who is looking for one of those is actually staying long term. Thanks!

I still would like to get your opinion. What do you think of spending 38% of net income on rent? According to the chart you posted, I would have 12% left for other necessities which I doubt would be enough. My job doesn't pay much and I don't have a good retirement plan either. I know I have to save as much as I could but at the same time I am trying to make a balance and enjoy a little in life.
rent controlled apartments pay very little rent and are a thing of the past .

rent stabilized are another story .rent stabilized today has lots of different categories. some apartments in desirable areas are new and fall under stabilized but come to market at market rents. a studio can be 3500 , a 1 bedroom 4500 and still be stabilized. they just agree to have future increases regulated .

landlords with existing stabilized apartments are bound by the laws as far as what they can ask so no they can't ask more because they are stabilized and tenents may stay a long time .

that is really not true anymore as far as people staying and through the years rents and capital improvements in buildings have brought rents up close to or at market .

our building we live in is stabilized and the turn over is a lot . couples come and stay for a year then go and buy a house ..
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Old 07-24-2018, 08:11 AM
 
581 posts, read 547,850 times
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Originally Posted by Jessie1451 View Post
You can do a keyword search on StreetEasy for “rent stabilized” but most of those will come with some kind of broker fee.

I read through this whole thread and the 2009 thread and found the whole thing fascinating enough to make an account to ask...where did you end up in 2009? Bay ridge seemed like the best safest choice (fiscally and otherwise). I’m super curious.
Jessie, did you really make an account to ask where I ended up in 2009? well, if that is true, since you asked, I ended up listening to a friend's advice who advised me to apply for a women residence in Manhattan and both of us got approved. It has been a wonderful experience but things have changed dramatically since last year and a new management came to kick all the residents out. It is heart breaking because one of the residents in an 83 year old woman who is being kicked out of her place. She has been living there for 40 years.

I don't really remember much from my other thread of 2009. Heck, I don't even remember what I ate two days ago. Bay Ridge is really far and I had some health issues so commute was a problem at that time. This time, I am really hoping to find a place to stay long term. I am tired of having to look for a place every few years. If you are looking for an affordable place in Manhattan, I can PM you the name of that residence.
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