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Negotiating with EY for M/SM Tech Consulting. I have 15 years experience, skills are in demand and my interviews went extremely well. 1. What are the salary ranges for M and SM in NYC. 2. I am told it is only going to be a M now, for my own benefit-no EY network means failure at selling. Whats the highest salary I can negotiate at M. Any other tips will be handy. I have "sold" (support on sales & new roles through relationships) plus I have solid delivery experience. I really want SM 😀😀😀 EY
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If you’re buying in a good area with appreciation of 5% or more, go for $1.5M. You will be very comfortable and not be house-poor.
I would wait. If remote work becomes the new normal I believe that real estate valuations are going to change dramatically pre- covid and post covid. People will value space more than location so your $2M property could be worth a lot less or you might prefer to spend the $2M on another type of property
All real estate would fall
Proximity to work locations in cities is a matter of scarcity. That is generally what drives high cost real estate and with WFH, that changes everything.
No
My problem is I’m looking at a super HCOL suburb of NYC so I’m paying all this money for a relatively normal properly (not like what I thought a $2M place would be as a kid 😂)
I moved to Seattle from NJ
I paid much more for a smaller house but the taxes are way lower
NJ is rough overall with housing price snd then the SALT change hits you again on income taxes.
Schools and parks are generally good but its a lot to pay
I wouldn’t do it. Personally I wouldn’t go more than ~2.5x household income.
Are you willing to swing a $6k-$9k after tax monthly expense? Because that's what the mortgage and tax liability will be.
Rising Star
I’ve always used the 25-28% of net income metric. If your housing costs/monthly mortgage exceed this, should reassess
It seems like the mortgage would be 1 check (2/mo) from the higher income. That seems risky. 1 relying on the higher income for the mortgage and 2 having the mortgage take one entire check.
But this also depends on where you live. In Texas 1.5-2M home is a lot of home. In NYC that cost might be par.
Was basing on SC1 comment of “1 check (2/mo)”
OP. Do its! To derisk, instead of putting 500k down, put down 20%, and hold 200k (trade off on interest savings, but probably worth it if you're nervous about economy or commitment). This should cover almost 2yrs of payment, and buy you time to find a solution or even exit might something crazy happen. Its NYC, real estate will always be in demand. Goodluck, and such a nice accompaniment to be able to do something like this for you and yours.
You deserve it brethren, go for it! Especially if it’s your dream home.
Pro
Depends on other costs, priorities, and risk tolerance. Our HHI is 600-700 cash + 100-200 in equity. 1.5M with 3 kids leaves us plenty for travel, remodeling, etc. we don’t drive flashy cars and won’t be buying a lake home anytime soon though.
Pro
Doesn’t sound unreasonable at all. Just make sure you have a good understanding of what the all in costs for that home will be.
Prop taxes, lawn maintenance, renovations, it all adds up pretty quick. The purchase price is a small part of the equation unless you are talking about an urban condo.
So I am in a similar boat and am looking to get lighter on my mortgage by selling and buying further from the city.
Market is up where I live and I’ll make some on sale. My thought is with more WFH, the traffic is reduced, and more distance won’t increase the length of my commute.
As corporate real estate takes a hit, more residential property could also become available and prices come down with increased supply.
Affordable? Yes.
Do you need to is a different question. Location matters. In SF you may get a right size home. In TX that would be a Mc Mansion and lot of maintenance particularly if you don’t use a lot of it.
I bought a $400K brand new 5.5K Sq Ft house (usual size in TX) . Feel that is excess already for 2 of us and 2 kids. Also look at depreciation risk.
Got you M2. I was more focused on the "C" aspect. NYC is not NY suburbs,like Sugarland isn't Houston city (i.e your 400k place will probably cost 3-5x in the Heights, Downtown, Midtown, Montrose, Upper Kirby, West U and maybe 6-10x in riveroaks). So, 1.5M in NYC in any neighborhood is probably modest, and doesn't seem alarming especially with 400k TC, and liquid assets of ~500k.
Out of curiosity, what's your role/specialty OP?
We’re in the same boat (household income will be around $600k next year) so I was also trying to consider what would be reasonable for a family home in LA. I’m thinking the same range which is just nuts but we’re going to save for awhile before we do it.
Chief
My personal rule of thumb is net home cost should be 3x or less of household income. With your $500k down payment, you should be in that ballpark.
Do it
Treat yo self!
You’re asking if you’re crazy for buying a house you’ll pay off in ~2 years? No but you’re crazy for posting this
Lol what?
Weird flex but okay