Private school but rent?

[Anonymous]

I’m curious, I recently learned a friend’s kid is attending a private that costs around 50k for kindergarten and they rent. Not likely to qualify for aid, but no family money. Is this common? We currently rent and have been putting off buying a place because it’s SO expensive right now vs. renting.

[Anonymous]

We have two kids in private and rent.

150k a year. That would be a nice mortgage payment.

[Anonymous]

Anonymous wrote:I’m curious, I recently learned a friend’s kid is attending a private that costs around 50k for kindergarten and they rent. Not likely to qualify for aid, but no family money. Is this common? We currently rent and have been putting off buying a place because it’s SO expensive right now vs. renting.

Yes, it's common.

[Anonymous]

There are many people over leveraged and trying to
keep up appearances. For some it might be a calculated bet for career advancement and networking with the right crowd. One signal of if someone comes from money is they bought a place in their 20’s.

[Anonymous]

What’s considered a “respectable” purchase price for an apartment in this crowd

[Anonymous]

Anonymous wrote:What’s considered a “respectable” purchase price for an apartment in this crowd

Most people seem to start with ~$1mm studio and upgrade as they get married ($2-5mm). Some people buy in the Hampton for $2-5mm and rent in the city.

[Anonymous]

It’s common in NYC. Big spenders who can’t manage their finances and can’t afford to buy. They will try to rationalize it by rent is so much less expensive or whatnot, but really it’s because they don’t have the down payment. M

Once you have kids in the city and haven’t saved a DP you’re screwed unless you earn millions a year. I don’t mean $1-2 million but $5 plus.

I know a renter who had a baby horse for both her kids for 16 weeks and TWO nannies, and the husband told my husband they still don’t have enough saved for a down payment.

Be careful assuming private school and renting makes any sense financially. You’re just renting a lifestyle.

[Anonymous]

Yes it’s people who haven’t accepted that they should make the respectable move to Westchester or CT and put down 20% on a $2 million house like the rest of us.

They rent because they don’t have the money to purchase in the city and they won’t ever have it because now they are paying for private school and the lifestyle associated with it.

But they will still think they are better than you and your commute on metro north.

[Anonymous]

Can only speak for myself but we moved here from the suburbs - where we owned a house - 2 years ago, can easily afford an apartment that would fit our family, but decided to rent for a few years before deciding on a neighborhood (possibly influenced by where it looks like they might be attending high school).

[Anonymous]

Anonymous wrote:It’s common in NYC. Big spenders who can’t manage their finances and can’t afford to buy. They will try to rationalize it by rent is so much less expensive or whatnot, but really it’s because they don’t have the down payment. M

Once you have kids in the city and haven’t saved a DP you’re screwed unless you earn millions a year. I don’t mean $1-2 million but $5 plus.

I know a renter who had a baby horse for both her kids for 16 weeks and TWO nannies, and the husband told my husband they still don’t have enough saved for a down payment.

Be careful assuming private school and renting makes any sense financially. You’re just renting a lifestyle.

Pretty silly assumptions. Renting gives us flexibility to move when we want. It’s cheaper as well. And can easily earn more $$ investing the down payment.

It’s better in our opinion to buy a second home. Which is what we did.

How am I screwed per your comment?

[Anonymous]

Anonymous wrote:Yes it’s people who haven’t accepted that they should make the respectable move to Westchester or CT and put down 20% on a $2 million house like the rest of us.

They rent because they don’t have the money to purchase in the city and they won’t ever have it because now they are paying for private school and the lifestyle associated with it.

But they will still think they are better than you and your commute on metro north.

The suburban keeping up with the jones and endless baseball tournaments. Boring!

[Anonymous]

Anonymous wrote:It’s common in NYC. Big spenders who can’t manage their finances and can’t afford to buy. They will try to rationalize it by rent is so much less expensive or whatnot, but really it’s because they don’t have the down payment. M

Once you have kids in the city and haven’t saved a DP you’re screwed unless you earn millions a year. I don’t mean $1-2 million but $5 plus.

I know a renter who had a baby horse for both her kids for 16 weeks and TWO nannies, and the husband told my husband they still don’t have enough saved for a down payment.

Be careful assuming private school and renting makes any sense financially. You’re just renting a lifestyle.

We have over $10mm in invested assets and rent. I guess we are the outliers.

[Anonymous]

Anonymous wrote:What’s considered a “respectable” purchase price for an apartment in this crowd

2mm for a 3 bedroom is respectable

[Anonymous]

Tons of people rent in nyc this isn’t weird at all. I know someone who pays close to $300k in tuition in DC and they rent. Not everyone wants to be a homeowner.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s common in NYC. Big spenders who can’t manage their finances and can’t afford to buy. They will try to rationalize it by rent is so much less expensive or whatnot, but really it’s because they don’t have the down payment. M

Once you have kids in the city and haven’t saved a DP you’re screwed unless you earn millions a year. I don’t mean $1-2 million but $5 plus.

I know a renter who had a baby horse for both her kids for 16 weeks and TWO nannies, and the husband told my husband they still don’t have enough saved for a down payment.

Be careful assuming private school and renting makes any sense financially. You’re just renting a lifestyle.

Pretty silly assumptions. Renting gives us flexibility to move when we want. It’s cheaper as well. And can easily earn more $$ investing the down payment.

It’s better in our opinion to buy a second home. Which is what we did.

How am I screwed per your comment?

Wouldn’t it be your first home if you rent your primary residence?