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> I would love to purchase a home, but even 10 years of a software engineering salary are not enough for that in NYC. Imagine a 1M USD studio apartment. Is 10
by throwaway2037 2y ago
> I would love to purchase a home, but even 10 years of a software engineering salary are not enough for that in NYC.
Imagine a 1M USD studio apartment. Is 10% (100K USD) down payment feasible?
Usually, banks are happy to lend 90% to people with good jobs and a good credit score.
- Telemakhos 2y agoIf you’re paying a million dollars to own a studio apartment (essentially a hotel room), something has gone horribly wrong. That could be any number of things (inflation, insane property valuations, unreasonable demand for city life), but that same money could be spent very differently and go much further in a different location.
- throwaway2037 2y agoIn Manhattan, in a good building, good neighborhood, 1M USD for a 25sqm studio sounds fine.
- nyc_data_geek1 2y agoNew York City consists of more than Manhattan. There are plenty of other places on subway lines where a million dollars buys a lot more.
- Workaccount2 2y agoYou pay the million dollars, rent it at $3.5k/mo, get a 3.5% return from rent, and then let the market drive up the value of the place 6-7% a year. You now have an investment returning a fairly steady ~10% annually, which matches the returns on some pretty bad junk bonds, however on paper your risk is much less. Or you could live in it and just get the 6-7% annual return, with even lower risk. That's why the apartment costs $1M.
- insane_dreamer 2y agoAnother factor is the apartment maintenance fees can be steep.