affording real estate in manhattan

Facebook Roxie
Sep 10 16 Comments

i see many families living in 2-3 bedroom apartments in the best parts of manhhatan. whether they rent or own, the cost is insane. how do the even average people in tech/finance/etc. can afford these?

parents of kids that go to school with my kids rent for 10K-15K 3br or own units worth 3M-4M without being at the exec team of goldman sachs. what am i doing wrong?

comments

Want to comment? LOG IN or SIGN UP
TOP 16 Comments
  • Amazon nkfdhk
    How long have they been working? What's their investments? They're not college grads. They've been investing for years.
    Sep 10 6
    • Amazon fjfkfjgh
      Yea, that means they've worked at least 15 years each. 15 years is a long time and they could have easily invested very well.
      7d
    • Facebook Roxie
      OP
      What I’m surprised about is how common these families are. This is not one or two couples, but most parents with kids in our school, just an example.
      7d
    • Google vkg38472
      You forget about the family money factor
      7d
    • Amazon fjfkfjgh
      That (family money) too. But look if they have saved 1M in their first 10 years (which is very practical) and invested it in the last 5 years, it could have easily tripled by the stock market or real estate market. To me it seems very realistic with the economic conditions of the last 15 years.
      7d
    • Facebook Roxie
      OP
      Yes that’s reasonable.
      7d
  • New dwyl21
    The simple and probable answer is debt, lots of debt. I’m sure not for all, but certainly for the large majority. The question is not what you are doing wrong, but whether or not your values align.
    Sep 10 1
    • Facebook Roxie
      OP
      Can’t see how this is true. The most debt you can take is to finance 80% of the apartment. For a 3M unit that’s more than 20K in monthly payment if you include common charges and taxes which easily cross the 5K for such units. You need to have a quite insane income to afford this. I can’t see how parents in our school can afford that.
      7d
  • Goldman Sachs fake engineer
    3-4M is not that much money, in the sense that millions of people in the world can afford it. That's how much all the family size houses in nice bay area suburbs cost too.

    If you have a stable job earning high 6 digits that's enough. Most of the 40+ year old people at big tech/finance companies are also at a high enough level where they easily bring that much money in.

    At every big bank, there's several thousand managing directors who make over 1M a year.
    Sep 10 6
    • Cisco Atin lay
      There is only a handful of directors but the supply of apartments ranging 3-4 mil is quite a lot. Recently built tall skyscrapers also very expensive
      Sep 10
    • The fact that that you think the amount of people who make 450k+ is as much as 1% makes me laugh
      Sep 10
    • Facebook Roxie
      OP
      No so accurate about the Bay Area. You can find 3000sqft houses with a pool for 2M in places like Sunnyvale.
      Sep 10
    • Goldman Sachs fake engineer
      The top 1% is an arbitrary benchmark... The question was who can afford these houses? The answer is there are enough people in the world who can afford and choose to buy them. You could hypothetically fill all of Manhattan with millionaires. There's rich people who have apartments in Manhattan as an investment, or as a vacation home, or for their kids to stay in. There's tens of thousands of people in finance making millions a year. There's yuppies splitting them with friends between 3-4 paychecks.
      Sep 10
    • Tableau / Eng
      WorkingIt

      Tableau Eng

      PRE
      Microsoft
      WorkingItmore
      It just means we are heading into another housing downturn/bust. Those that have the most to lose will claim that's BS but that's always the case at these points in time.
      Sep 10