Why are you looking at $1.2 million houses? I make half what you’re making and have a house that’s a good deal more expensive than that. A $10,000 a month payment would be nothing for you if you’re saving $150k a year and currently paying rent.
This is not surprising. Sellers and agents can be picky because it's still seller's market in some areas. I would wait until next year. i think the market will tank real bad. They gonna keep jacking the rates and prices can go up dramatically but also go down as fast.
Targeting homes in the 1.2 million range in areas with nice school districts (daughter starting school). NYC suburbs. I have a down payment saved up and other savings. No debt.
I haven't had this salary for that long so im not super cash rich (but currently saving like 150k+ a year after tax).
Every house I have put a bid on goes like this:
1. Selling agent tells me 5 other bids on house. I up my bid 50 to 100k
2. Selling agent calls to tell me unfortunately someone placed an all cash bid and unless I am all cash I'm out.
This has happened to me 5 times in the past year. Every time an all cash buyer steps in. I cannot buy a home right now unless I'm all cash (ridiculous!).
Anything below 1.2 in my area is either totally tiny/cramped / needs a TON of work, has a failing school district, or requires over an hour commute. I decided to settle, found a home far away that I wasn't crazy about but seemed fine and again an ALL CASH BUYER appeared.
I honestly don't think I will be able to buy a home until I'm all cash. (in 5-7 years I think).
Are mortgages things of the past? Honestly never thought I would have such a hard time buying a home when my income was this high. I even tried renting a nice home and someone outbid my lease and offered 2 years upfront rental payments (not exaggerating!).
Bidding wars and all cash buyers have been a feature of the housing market for a number of years. But people still do find homes and still get mortgages. So you are being overly dramatic or you haven't tried hard enough.
If you make the salary you claim, that means you earn probably 30k/month after tax which is just a guess off the top of my head.
If you had 2 months of your annual salary you could easily put a down payment on a home and find a mortgage. You know you could buy a home but you don't want to for whatever reasons.
Making 450K in NYC area is pretty much nothing these days. He is only taking home half that after taxes here. Buying house/condo/co-op in NYC area is not like most places in US.
The OP is a chucklehead liar. In the very first post of this thread he states this:
“I haven't had this salary for that long so im not super cash rich (but currently saving like 150k+ a year after tax).
So which is it? He hasn’t had the job “that long” or he saves 150k a year? What, exactly, does “that long” mean?
Also, OP, if you’re only making 450k a year in NYC as an investment banker perhaps you should be looking for a new occupation.
Uh, its my third year of investment banking, 450k is the average for my year group (bonus could be higher or lower).
last year my comp was 375, year before 250. my base has gone up increments of 25k a year each year. 150k is about my average savings more or less a year
Strange forum to ask this in but I think the feeling is a lot more common that most would think.
To put it simply, you're just finding out that you aren't yet as rich as you expected to be when you hit that income level. There are a lot of people in the area who make that kind of money in various industries, plus dual income families and some who get help from parents.
So you have to be patient in house shopping. We chose to stay in NYC but waited a few extra years to save up before purchasing. It won't be long before you can be one of the people outbidding you today.
Or you can find plenty of nice towns with lower prices. In NJ I know people who have moved to Montclair and the Princeton and Red Bank areas.
Don't know why you got downvoted so much. Your numbers make sense and your story is common. Sellers will take a cash offer even if it's slightly lower, so you either have to over-pay like a chump or wait for the market to cool off some more.
The OP is a chucklehead liar. In the very first post of this thread he states this:
“I haven't had this salary for that long so im not super cash rich (but currently saving like 150k+ a year after tax).
So which is it? He hasn’t had the job “that long” or he saves 150k a year? What, exactly, does “that long” mean?
Also, OP, if you’re only making 450k a year in NYC as an investment banker perhaps you should be looking for a new occupation.
Uh, its my third year of investment banking, 450k is the average for my year group (bonus could be higher or lower).
last year my comp was 375, year before 250. my base has gone up increments of 25k a year each year. 150k is about my average savings more or less a year
What's your philanthropy looking like these days? I'm kinda hurting and could use 2-3k. Wanna hook a brother up?
Sounds like you should move to a different state. You'd have a ridiculous house in the Midwest for $1.2M. You say you are saving $150k per year, and can do a down payment already. Just work one more year, take your $300k+ and move to the Midwest. Buy a $700k house (which would be really really really nice house) and only have a $400k loan. Don't act like you can't make money anywhere else, I'm probably a lot younger than you, I'm in my 20's, an I know plenty of people making $100k+ with useful college bachelors degrees, myself included. Whatever your job is I'm sure you could find something around $200k which is more than enough to pay for your $400k loan. People need to start moving to cheaper areas if it's too expensive for them to live where they are. You'll also find out that the income difference from someone making $400k to $200k is not half, there is less total tax percentage paid for the 200k person.
nice home. my base salary is 225k, which is a little under 14k a month after health care and taxes. buying that would leave me with only 4k a month AFTER paying the mortgage, interest, and property taxes. Not for me to extend that far. Yes, I get a big bonus year end buts I need monthly cash flow.
my base jumps up to 275 shortly, but even then 10k is too rich for my blood
$4k a month is like 70% of median household income for NYC. "Only" is a pretty interesting modifier to that figure when you're talking about take-home cashflow AFTER covering all your housing costs.
I honestly dont know why everyone thinks this is fake
-Is me making 450k fake? thats pretty normal post MBA IB comp in NYC. It's also not THAT much relative to the area considering the competition and packed open houses I'm seeing for million dollar homes
-Is me getting outbid by all cash buyers fake? Has anyone here tried to buy a decent home in Seattle, NY, SF, LA over the past 2 years? I'm not the only only one experiencing this.
-Yes, I could theoretically go way down market, and overbid like crazy on a 750k home to beat an all cash buyer. I don't want to do that as that seems pretty foolish.
-I am looking all around the region and not being desperate. Anytime I see a home that seems not insanely overpriced/risky to purchase the open houses are packed and all cash buyers place bids (even in the current environment). To all cash buyers rising rates mean nothing.
I honestly dont know why everyone thinks this is fake
-Is me making 450k fake? thats pretty normal post MBA IB comp in NYC. It's also not THAT much relative to the area considering the competition and packed open houses I'm seeing for million dollar homes
-Is me getting outbid by all cash buyers fake? Has anyone here tried to buy a decent home in Seattle, NY, SF, LA over the past 2 years? I'm not the only only one experiencing this.
-Yes, I could theoretically go way down market, and overbid like crazy on a 750k home to beat an all cash buyer. I don't want to do that as that seems pretty foolish.
-I am looking all around the region and not being desperate. Anytime I see a home that seems not insanely overpriced/risky to purchase the open houses are packed and all cash buyers place bids (even in the current environment). To all cash buyers rising rates mean nothing.
Continue to be patient and learn more about the suburban communities.
I honestly dont know why everyone thinks this is fake
-Is me making 450k fake? thats pretty normal post MBA IB comp in NYC. It's also not THAT much relative to the area considering the competition and packed open houses I'm seeing for million dollar homes
-Is me getting outbid by all cash buyers fake? Has anyone here tried to buy a decent home in Seattle, NY, SF, LA over the past 2 years? I'm not the only only one experiencing this.
-Yes, I could theoretically go way down market, and overbid like crazy on a 750k home to beat an all cash buyer. I don't want to do that as that seems pretty foolish.
-I am looking all around the region and not being desperate. Anytime I see a home that seems not insanely overpriced/risky to purchase the open houses are packed and all cash buyers place bids (even in the current environment). To all cash buyers rising rates mean nothing.
Nobody thinks this wasn’t happening a year ago…like in your year old link, it started to die off about 6 months ago…the other link in 7 months old. Your post is a fake because it isn’t happening now. Show us a house or two that you looked at in the last 60 days that’s closed. If you can find 3 houses that sold above asking and/or closed so quickly at/near asking that a cash offer is believable I will take back everything I said about you being a troll.
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