Is the opportunity cost of living in a “luxury” apartment worth it? Say $1500/month. For context, 100k salary living in Chicago and really not sure what my budget should be. No debt or other major expenses.

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Gym and pool in the building are totally worth it. Saves tons of time and also motivates to workout more

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Yes but check if these things are even open right now. Many building gyms are closed because of covid.

I am living in a 2200 sq ft one. Married no kids. Love it. We pay 4k

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1500 is not a luxury apartment lol

likefunnysmart

No, it is not.

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none of us are sure either bc you didn’t provide any numbers or other information (e.g. amenities)...

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Great building if you’re looking for great amenities. If you’re planning on just staying in your tiny studio unit then no

120k salary - $1533 no utilities, 785sq ft, Arlington, VA, gym and pool, washer dryer in unit, balcony - not luxury at all.

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Crystal city

likehelpful

Sounds reasonable to me but I live in NYC so take my data point for what it’s worth.

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Outline the amenities and 1., likelihood that you’ll use/benefit, and 2., what you would do if you didn’t have that at another building (eg, paying for gym membership). Some benefits to consider that are not always top of mind as amenities are doorperson and building security, package receiving, and round the clock maintenance. I’ve had those at every building I’ve been in and have always been glad to pay for them. In particular, the package receiving is great since we (normally) travel a lot.

From a pure numbers perspective, $1.5k/month on a $100k salary sounds fine but that’s highly dependent on your other expenses and general spend each month.

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That studio is small, but if you think the amenities are worth it then go for it. Nice that you can cancel the gym membership! Just make sure it fits into your overall budget inclusive of 401k and insurance contribution, food, etc.

Also, I would ask about availability of amenities during COVID. Is everything still open? Do they have to limit capacity and resort to first come first served? How do they ensure safety and cleanliness right now?

Dude don’t live in a stupidly expensive high rise apartment in the city that has cheap floors and cheap counter tops and will charge you up the wazoo for every ding. Also those places are utility black holes for electricity and heating costs. Giant windows in the summer heat your unit and leak the heat out. I know- I’ve lived it. Find somewhere with easy airport access, lots of space, good insulation and in a quiet neighborhood. There are way better places that are actually luxury and not BS luxury.

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We went from a $3k a month before utilities 2bed 2 bath that was 800sqft in wrigleyville to a $2k a month 1600 sqft place in Edgewater. Waaaaay quieter, bigger everything, better utility costs and options (most high rises have agreements and provider requirements for internet). Just don’t do it. Find a good walk up apartment and you’ll be much happier. Plus- elevators in a pandemic don’t sound great.

Are you renting or owning?

Personally it doesn’t make sense to live in a luxury building when you’re on the road most days if the year.

Amenities don’t mean much these days you’re paying for them but you can’t use them.

Amenities are important on the day you buy and ten day you sell. In between who knows? You n most buildings the on S who really use the amenities are the older residents who have the time etc.

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Renting. That same reasoning about being on the road is why I went with a very modest two bedroom apartment. But then WFH came and I share a dining room table with my roommate every day. I am at the point where I really just want to have a nicer space

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Other people seemed to miss location as a factor. An expensive place in a location not conducive to what you want/need is a waste of money.

OP, it is really a case of what you value. You are tired of seeing your roommate every day. How much are you willing to pay per day for that? You have a modest place instead of a nice one. How much would you pay for that? Add up the value of each figure. Gym in bldg worth 100/mo. Freedom to be have company, be nude, make noise without considering others is worth 200/mo. Nicer place in general worth 150/mo. 150 for a nicer place may seem fluffy, but think about it like this: would you pay $5/night to upgrade from a Sheraton to a Westin? $10 per night?

Adjust your rent by the above values. What do you get?

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I would also add how long do you think you’ll be WFH. If the answer is “dunno” then it’s easier to justify a nicer place because you might be spending a very long Chicago winter inside...

Depends what you consider luxury. I would never spend more $$ on rent that I would spend on mortgage that's for sure.

I knew a guy who paid $4k/month for a studio. Shit apartment, but good hood for singles to party hop in NYC. So, depends.

OP what is HOA fees? The killer in luxury Apts with amenities is usually not rent but hoa on top of rent. For example, it is $600 per month on top of $2000 rent where I live. That’s why I am thinking to buy instead, imagine $600 more towards mortgage gets me way ahead of paying it off sooner

Nothing like that thankfully. It would be $1500 plus $120 for utilities give or take. That’s what drives me crazy - the fact that I know I can be saving so much more living somewhere else

Try it for 6mon/year and see how you feel. YOLO you want to experience it, why not? You can always figure out whether to renew or go somewhere else

It would have to be at least a 12 mo lease

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