Reply to NYC law partner w/ kids: "$850K gross is not enough to live on"

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Reply to "NYC law partner w/ kids: "$850K gross is not enough to live on""

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Weird.  I checked zillow, and there are a TON of 3+ bedroom apartments for rent in NYC for less than 5,000.  There is also plenty of inventory for sale under 1 million.  Maybe adjust their criteria to fit their budget? [/quote]

Most are likely not that nice or are not in a good area for under 5k
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[b]The Redditor could easily afford 8-9k/mo. [/b]Her monthly draw is 21k plus she gets payouts quarterly for taxes and a year end bonus. There is no reason for a family of 5 to squeeze into a 2 bedroom apartment on that income. And does her spouse not work at all? If not, then they must not have high childcare expenses. If he does, that's got to be at least another 2-3k per month. Probably more.

I say this as someone making it work in DC on a joint HHI of 150k. We live in a 2-bedroom condo -- I have nothing against them. But we only have one kid so we fit into the condo well and we don't complain about cost of living. Also we had the forethought to buy this condo before having any kids and we planned in advance for expenses like childcare and college savings so nothing has come as a surprise. Like the Redditor, we are highly educated. But we work in low paying helping professions because we want to, and we have planned accordingly to ensure we can still give our child a good life even though we make less than most people living around us in DC. I have ZERO empathy for the Redditor who makes literally 6x our joint income, had three kids, and is whining that it's impossible to "make it work." She needs to grow the eff up.[/quote]

That’s a recipe for ending up lifelong renters. 
That’s a lot of money to spend on rent and it means that their end of year bonus will have to be saved for a down payment.

The biggest financial mistake among NYC friends is not having the down payment saved for a coop before moving into an expensive rental/having children. A DP for a decent condo is often close to one million. You can’t save for that if you’re spending 9-10k a month on rent.

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As others have pointed out, the Reddit woman made a few long term financial mistakes. The big one is not getting in the home equity ladder earlier, as in a decade ago, when she started her real estate career. Even a studio with some sort of mortgage would have helped her avoid being a middle aged renter. [/quote]

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