Private school but rent?

[Anonymous]

Does every TT family post here? Doing the math and if every poster who claims to have a kid at a TT really does, that would be a lot of them. One would think they have better things to do.

[Anonymous]

Anonymous wrote:We live in 20k a month rental and send DS to TT SS school. We are not worried that we don’t own a home in the city lol. We used to own in a prestigious coop in the UES and we had no problems but neighbors ended up suing each other and some board members were really difficult with potential buyers and applicants. It was exhausting so we sold and found a nice rental that leaves us a lot of flexibility. We have a house out east that we do own though.

Completely different situation if you own a home in the Hamptons. OP doesn’t own anything.

[Anonymous]

Anonymous wrote:Does every TT family post here? Doing the math and if every poster who claims to have a kid at a TT really does, that would be a lot of them. One would think they have better things to do.

Hah the very definition of TT is flexible only when it's where you send your own child and aren't ranting on a message board.

[Anonymous]

Anonymous wrote:Renting has been more beneficial for so many years now. We sold three properties to become renters. Should have never bought them.

Owning can be beneficial. The outer borough and suburbs have appreciated over time. It forces people with bad spending habits to save.


In addition, the math isn’t straightforward. If are wealthy enough to own a place that can host and impress guest with the view (increase networking opportunity), privacy / security of knowing everyone in the building, etc…

[Anonymous]

Anonymous wrote:Does every TT family post here? Doing the math and if every poster who claims to have a kid at a TT really does, that would be a lot of them. One would think they have better things to do.

what is surprising is if you think about how few graduates of some of these schools have yet they are over-represented here and in various NYC circles.

Chapin probably has 4-5k graduates who are still alive. It's tiny number.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We own but it pains my husband (finance guy) since the money could be doing better in the market. We think the renters are pretty smart!

We wanted a prewar place in a co-op west of Lex and you can’t really rent those. You also tend to need several times the purchase price of those apartments in cash to make it through the board process which may also make some people gun shy on buying. We were only able to make that work with help from family. Lots of people are getting help with down payments (not to mention private school tuition, hence the dog and pony show for “Grandparents Day”) so no shame in the renting game…. You do what works for your family.

They don’t have it. That’s why they rent.

not having 2x the purchase price in cash isn't a knock you make it out to be.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Also, anecdotally, I know a family bringing in $800K but they rent, sent their kids to public schools and Regis. Lots of people in different situations but renting is common here.

$800k isn’t enough to own a nice property and send kids to privates in NY. Of course they rent.

We make it work pretty easily.

[Anonymous]

Anonymous wrote:

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?

Second home meaning a weekend home

[Anonymous]

Anonymous wrote:

Anonymous wrote:Renting has been more beneficial for so many years now. We sold three properties to become renters. Should have never bought them.

Owning can be beneficial. The outer borough and suburbs have appreciated over time. It forces people with bad spending habits to save.


In addition, the math isn’t straightforward. If are wealthy enough to own a place that can host and impress guest with the view (increase networking opportunity), privacy / security of knowing everyone in the building, etc…

We rent in a family friendly building on UES. Lots of people know each other, people have been here 10 plus years.

[Anonymous]

Anonymous wrote:

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.

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

You are. Definitely.

feels like at least a couple of others here are in a similar boat.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The rent v buy calculus is so skewed towards renting that you shouldn’t buy unless it’s a niche housing type you can’t rent (e.g. prewar park avenue coop). Don’t let a perception of negative stigma push you into buying a condo or coop that won’t appreciate at the rate of inflation and with monthlies that will eat you alive should your circumstances change.

Except then you have to rent in retirement and rent goes up every year. You also have to live in a rental building.

If you’re using a rent/buy calculator you’re not wealthy enough to send kids to privates in Manhattan. A nanny is also more expensive than daycare, and NY private school parents aren’t using daycare.

do you own your home in manhattan? send kids to private/public?

A nanny is cheaper if you have 2 kids i think.

[Anonymous]

Anonymous wrote:Does every TT family post here? Doing the math and if every poster who claims to have a kid at a TT really does, that would be a lot of them. One would think they have better things to do.

I think it's the demographics of this board. Many of us came from the OG UrbanBaby, myself included.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Renting has been more beneficial for so many years now. We sold three properties to become renters. Should have never bought them.

Owning can be beneficial. The outer borough and suburbs have appreciated over time. It forces people with bad spending habits to save.


In addition, the math isn’t straightforward. If are wealthy enough to own a place that can host and impress guest with the view (increase networking opportunity), privacy / security of knowing everyone in the building, etc…

We rent in a family friendly building on UES. Lots of people know each other, people have been here 10 plus years.

While that might be true, I know plenty of people who regret not buying (especially outside of Manhattan). Since the 90’s the wealth gap continues to grow due to the inflationary environment we live in. Real estate is one of the few investment vehicles you are allowed to be over leverage and have the debt depreciate over time due to inflation and tax deductions in mortgage interest payments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The rent v buy calculus is so skewed towards renting that you shouldn’t buy unless it’s a niche housing type you can’t rent (e.g. prewar park avenue coop). Don’t let a perception of negative stigma push you into buying a condo or coop that won’t appreciate at the rate of inflation and with monthlies that will eat you alive should your circumstances change.

Except then you have to rent in retirement and rent goes up every year. You also have to live in a rental building.

If you’re using a rent/buy calculator you’re not wealthy enough to send kids to privates in Manhattan. A nanny is also more expensive than daycare, and NY private school parents aren’t using daycare.

Many UHNW individuals use rent buy calculators. You don’t become a centimillionaire by being reckless financially. Even without the calculator, they intuit the cost benefit.

And you know what else goes up in retirement in NYC? Coop monthlies. And insurance. And repair costs. And that equity you have tied up isn’t beating the S&P or a multifamily property long term. There are plenty of neighborhood and property types in NY where buying never beats renting, even on an infinity timescale

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Also, anecdotally, I know a family bringing in $800K but they rent, sent their kids to public schools and Regis. Lots of people in different situations but renting is common here.

$800k isn’t enough to own a nice property and send kids to privates in NY. Of course they rent.

We make it work pretty easily.

You can live in a nice coop on Sutton Place or UN Plaza on this income easily. Also Yorkville. 3BR. With views.