[USER]

Seeking advice… I have decided to move to New York City after spending five years in a lower cost of living area after I bought a house there five years ago as a new Covid was hitting and was going to be lasting for at least a couple years.

I need to move for my career and the goals. I want to accomplish that includes sitting on boards and becoming an advisor to companies.

I do not want to go back to San Francisco as I spent my 20s there. I’m 32 and this is a ten year long goal.

The “problem” is that I own my house in the current city, and I have about $200k in equity.

My parents retired down near me even though I told them not to retire in the area for me because we have never been close.

They are throwing a fit over me leaving. Toddler tantrums. Emotionally unsupportive.

To the point where I want to cut them out of my life as I am so incredibly frustrated by their immature behavior (we’ve always had a a tumultuous relationship due to their immature and sometimes abusive behavior).

I’ve always been responsible person working since I was 16 years old having two jobs since I was 18 going to college on multiple academic scholarships, etc.. But I’ve never had to cut things this close to be able to make it work because my compensation is incorrect according to market.

Can I realistically buy a decent 1 bedroom in NYC with or without selling my first house?

Income: $8400 take home after deductions
Potential rental net income: $500 a month
Other random income: $300 a month
Total: $9k a month after taxes

*note I have an annual $60k bonus I’m not relying on in these calcs

Job level: senior director, was a VP exec reporting to the CEO in my last job and was making way more. Had to change jobs due to illegal harassment, retaliation, discrimination.

Expenses-
Mortgage/housing: $2000 a month for house/utilities, etc. would be paid off when I’m 28. 3% interest rate

Non-housing: $4k a month (yes I can cut back, paying off some interest free debt I planned on rn and have some extra pet expenses)

Investment: $2k a month
HYSA: $1k a month
Assets-
House: $450k-$525k ($200k ish in equity)
Car: $11k
HYSA: $55k

Mutual funds: $90k
401k: $200k
I-bonds: $11k

[Jaime]

It depends where you are planning to live in NYC. You could likely afford a 1BR apartment in nice, safe areas of the Bronx, like Riverdale or Woodlawn.

Most parts of Manhattan would be too expensive except maybe Washington Heights or Inwood.

Maybe you vould afford something in Jackson Heights or Flushing, Queens but before you buy, rent for a year and get to know the city well so you can discover the neighborhoods you’d be happy to live in within your price range.

Also, NYC, while amazing, isn’t always easy to live in – you might love it or you might decide you prefer living in a nearby suburb.

[Leah]

I lived in New York for almost 20 years of my adult working life on way less income and came out unscathed with investments and assets intact.

I own a house (not in New York City), and I understand the cringe factor associated with renting and feeling like it’s wasting money, but DO NOT buy for the first year.

It takes a year to “get your subway legs” and truly become a New Yorker, getting a feel for different neighborhoods to know which is your favorite (and which you dislike… and why).

I wish I had bought there 20 years ago: but NOT before knowing the various neighborhoods by feel. Regarding your parents, they sound unsupportive, I would suck up the pain of their dissaporval and move forward.

My parents dissaproved of me moving to New York, and I agnoized over the decision, but my years in New York were some of the best years of my life, and I do not regret the potential loss of future investing income that I suffered while living there for a second, it was worth every dollar and every minute, I stand by this, even if I wind up dying in poverty.

I grew stronger to the point where I gave zero fucks about my parents opinion and became highly self actualized, well worth any financial risk or loss.

I envy this exciting start of your new journey, I have 3 toddlers and cannot go back to New York atm… wish you much joy and success, your parents will have to get over it.

[Melissa]

Rent first. NYC has many neighborhoods and you may like one and hate another. Also, cooperatives (apartments) here have a monthly maintenance fee aside from a mortgage.

Renting while expensive may help you decide if buying is worth it.

Good luck!

[Jill]

I’m a little confused about your employment… you’re moving- is your job not changing or will you be looking for new employment?

I would say if you know your income in your new location with certainty, start house hunting to see what you can find and create a budget based on that. Re-run the numbers and see what your new budget would be.

As for your parents, I would say be kind. Treat them with respect, even if they don’t do the same.

In the sense that you can only control your behavior. But make decisions you can live with when it comes to your career and future.

They will not be caring for you in the future.

[Christine]

Look also outside of NYC proper
There are plenty of nice townships nearby with affordable housing

[Annie]

Check rentometer to see how much your house would rent for plus property management and see if that would make sense with payments. I’d try to keep my house as a backup plan.

Maybe you can rent per room? Are you interested in real estate?

Start attending real estate investing meetups in NY and connecting to investors there.

You’ll learn a few things and get to know the people who can help you get a good deal when/if you decide to invest in a property.

[Shelley]

NYC can be expensive, even for one-bedroom apartments. You’ll likely need at least 500k-600k for a decent apartment in many neighborhoods. However, prices can vary significantly based on location.

It’s worth considering neighborhoods further from Manhattan or in boroughs like Brooklyn or Queens, where prices might be lower.

[Author]

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