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That would require a total salary of around $105,000 before tax (married filing jointly.)
1. How easy would it be for me to make up the difference, i.e. get a job paying $25,000? I'm not overly fussy and would do any kind of job. In the UK I work for a law firm, have an honours degree from a top Uni, and like to think I'm capable, but my work would have no relevance to anything in the USA as it's English law only. In a dream world a job in finance or property would come along, but I'd have no qualms working in a bar or retail or anything for a year or so to get the 'New York experience'. I guess because of my experience it would have to be an entry level job.
2. Does this budget look feasible / about right? We're not big party-goers or clubbers or anything, but like to go to a bar occasionally and the occasional meal out. We're obviously going to want to do some stuff though, otherwise what would be the point in moving! I figured 2 unlimited metro cards ($250) would be all the transport we need, and $300 was an estimate for Gas, Electric, Water, Phone, Internet, etc.
3. I've gone with $2300 for rent as it would be a third of partner's gross salary, and have seen a fair few decent options around this price looking online. We would probably look to get a 1 bed in somewhere like Sunnyside, Astoria, or Greenpoint. From my research the commute to midtown is good, and these are reasonably priced, nice enough, safe areas. Currently commute 2-3 hours a day so not fussed about a 20-30 minute commute each way! What do you guys think of these areas? We're 27, married, not big partygoers, (like a drink and to socialise a bit though), probably typical middle-class conservative Brits! Does anyone have any experience of trying to take on an apartment having just moved from abroad? Presumably we will have no credit history in the USA, and with only one of us having a job when we arrive, will this likely be an issue? Partner's company will sort out most of the relocation admin in terms of visas, paying for our stuff to go out there, etc, perhaps they can assist in some way with this sort of thing too?
4. If worst came to worst and I couldn't get any sort of job we would need to wipe off $1250 off the Groceries/Fun part of the budget, would $1250 still be liveable? Appreciate it may not be enjoyable!
5. In my budget, I don't include any provision for either 401k or private healthcare. As we will only be living there for 1-2 years, it does not make sense to me to pay into a new / another pension scheme. As for healthcare, I think there will be some arrangement that partner gets it provided through company, does this sound common? How essential is it to have healthcare insurance as I don't intend to get it (never required a hospital visit, and been to doctors once in the last 5 years.)
6. Are there any taxes, fees, or expenses I'm likely forgetting about? I knocked up a quick excel model which deducts Federal Income Tax, FICA, State Income Tax, and NYC Income Tax to arrive at my net salary figures. An example I mean would be like the UK's council tax. This is quite a hefty tax everyone who lives in a property pays to the council. I suppose that is what State Income Tax is for. In the UK we also have service charges on leasehold property (apartments) - so if you own a flat in London, say a new high rise, you could expect to have to fork out an extra $500 a month on the service charge. In theory it's used to cover communal areas bills, management company fees, electricity and water to run the pool, pay for windows to be cleaned, pay for any maintenance needed, etc, but most people hate it and think it's a scam. Is there anything like that? Perhaps some form of building or contents insurance?
Would love to hear all your thoughts on the above, and sorry for the essay! Thanks in advance!
damn! 80K is a nice paycheck, but spending 2500 dollars a month for groceries and "fun"? do YOU work or just your partner? Most people in this city make less than that a month that they have to spend on everything.
You're not allowed to rent $2300/mo, only $2000/mo based on 40x rule. Also, don't spend $2500 on groceries and fun, that's rediculous. Between eating out and cooking food, my expenses in that realm are $300-$400/mo. Add in another $100-$400 and you have my monthly fun budget. Top it off, I live in Manhattan.
I made $80k once, you're misestimating your monthly cashflow.
Thanks for replies guys! Remember the 2500 is for 2 people so really it's like 1250 each. Groceries must be around $400 a month, 2x gym memberships, Netflix/Prime, and drinks/food out say 10x a month for 2 people - I think it will soon go! Especially as we'll want to take advantage of our short time here.
When we arrive it will just be partner, and 80k would leave us with $5100 - I'm intending to get a job to make up the other $1400. Aquarius that $6500 is assuming I managed to get a job paying $25k. $105k after Federal Income Tax, State Income Tax, NYC Tax, and FICA is $6530 / month according to my calculations! (Standard deductions, married filing jointly, no 401k.)
Thanks Javawood, is that 40x rule followed strictly then? I don't understand how people do it with that rule in place!
Thanks Javawood, is that 40x rule followed strictly then? I don't understand how people do it with that rule in place!
J
It's pretty universally used by landlords to set income requirements. BUT, if you have very good credit and a solid employment history they may bend the limit a little and let, say, 35X the rent slide. On the flip side, if you lack credit or have a short employment history or switch jobs often, they may deny you even though you qualify based on the 40X rule.
Also, minumum wage here is now $13 here. So, to make the $25,000 you're thinking about you would really just need to land the most basic job you can get as long as it is a full time position (40 hours/Week). But don't expect it to be super easy to find something like that given that you are here temporarily. With the new wage laws, employers are very reluctant to give full time hours to anyone. For my company, I frequently hire people who are here temporarily, but would never think to give them full time hours since I know there is no chance of them staying and growing with company.
Do keep in mind that with your budget you should totally exclude the idea of living in Manhattan. If you keep your food/fun budget at $2500 (which I think isn't totally unreasonable if you want to enjoy the city while you're here), you will probably need to shoot for a lower rent limit. You can find a one bedroom apartment for under $2000 if you compromise on living in a less trendy part of Brooklyn or Queens. If I was living in New York for two years...my focus wouldn't be getting the nicest apartment, it would be have the funds to explore and do what I want.
If you will be paying US taxes on that money, expect 26 to 28 0/0 out of that $80k on taxes.
As for neighborhoods, Woodside, Sunnyside, are decent areas to move to , and a very quick ride on the train for so many reasonable restaurants.
So , expect $1700 for a 1 br apartment. Expect $800-$1000 for groceries per month, if you cook. Expect cable,internet,phone to cost $300 per month. As for extracurricular activities , it depends what your tastes are.
It's pretty universally used by landlords to set income requirements. BUT, if you have very good credit and a solid employment history they may bend the limit a little and let, say, 35X the rent slide. On the flip side, if you lack credit or have a short employment history or switch jobs often, they may deny you even though you qualify based on the 40X rule.
Also, minumum wage here is now $13 here. So, to make the $25,000 you're thinking about you would really just need to land the most basic job you can get as long as it is a full time position (40 hours/Week). But don't expect it to be super easy to find something like that given that you are here temporarily. With the new wage laws, employers are very reluctant to give full time hours to anyone. For my company, I frequently hire people who are here temporarily, but would never think to give them full time hours since I know there is no chance of them staying and growing with company.
Do keep in mind that with your budget you should totally exclude the idea of living in Manhattan. If you keep your food/fun budget at $2500 (which I think isn't totally unreasonable if you want to enjoy the city while you're here), you will probably need to shoot for a lower rent limit. You can find a one bedroom apartment for under $2000 if you compromise on living in a less trendy part of Brooklyn or Queens. If I was living in New York for two years...my focus wouldn't be getting the nicest apartment, it would be have the funds to explore and do what I want.
Fair enough - will have to have a think about that then! Perhaps one option would be to sublet a room in a flat share for a few months until I have a job too, then get something around the $2300 mark. Not too worried about trendy-ness so if we can find a nice enough 1 bed in Queens with a reasonable commute, then perhaps we'd shoot for that!
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