Getting Ready to Retire at 47 in NYC

[truenorth418]

Congratulations.

I agree with the general comment on housing.

Just curious... If you sold your 275 sq ft apt in Manhattan... what would it fetch?

If you moved to a lower cost location... would you sell it or rent it out?

In the area of Manhattan where I live, co-op apartments cost about $900 per square foot. That means my 275 sq foot shoebox could sell for as much as $250k under the right circumstances. I recently searched some of the local real estate websites and there are a lot of studio apartments for sale at the moment. Since mine is not in the best condition, maybe I could sell mine for around $225k. So after state and local capital gains taxes, commissions, and other expenses I would probably walk away with a little less than $200k, more than enough to afford a very nice place in most other parts of the country.

The NYC real estate market is very unique. I could rent my place out, but since I own a co-op and not a condo, I am restricted by my co-op board's rules which restrict rentals to 2 years out of every 5. This is pretty standard when it comes to NYC co-ops.

 

[truenorth418]

I'd run out of money though...

No question that NYC is one of the most expensive markets in the U.S. I think this is primarily driven by housing costs. If you can address that expense, then the economics become easier.

One benefit to living in NYC is that one can live quite comfortably without a car, which can save thousands of dollars a year compared with places that require it. While I have needed a car to commute back and forth to my j*b in the suburbs, I now have the option of giving it up. There is a company called "Zipcar" which provides cheap and convenient auto rentals when a car is needed.

 

[truenorth418]

47 yo retiree here as well (no kids) - what do you plan on doing w/ your newly acquired spare time?

I'm not clear on what I want to do with my time over the long term, but in the near term I am planning to catch up on some travel. I have not had more than a week off for vacations in over 20 years! I am REALLY looking forward to being able to come and go as I please and not rushing through vacations because of limited time off..

 

[ER Man]

Most people live over 100 now so it looks like you will spend 50+ years not working.

WOW - NYC is one of the most expensive cities on the planet too. What did you tell your employer though?

 

[ER Man]

Do you have a girl friend?

 

[brewer12345]

My apartment is 500 sq ft. It has one very hard to reach, small closet. The bedroom is small, but I can fit a queeen size bed. It is a real job to turn the mattress, and changing sheets must be done from the bed, as I can't get to the far side or the top except by reaching down from above. The kitchen is plenty big for me to store my pans and a moderate size refrigerator, but I do shop for food almost daily. It is most comfortable for one cook, not group or couples' cooking. The LR is actually spacious.

The neighborhood and building are primo, which is why I am here. However, if I buy a condo I really would like at least another 100-200 sq ft, and a balcony. Also, Io have a big storeroom in the basement.

I think I could do a smaller place right on Venice Beach Boardwalk, but otherwise 500ft is about my limit I think.

Ha

I will refrain from comments on teh privations you must endure with such a small bedroom, given your social life.

When DW and I were young, we had a 775 sq ft 2BR apartment in Queens we shared with two dogs and a cat. It was more than adequate for our lifestyle (both working full time and going to school at night), but I think long term it would have been tough. That said, I have spent over a week at a time in our 16X7 camper with DW, two kids and two dogs and been ecstatically happy, so maybe a small space is OK depending on circumstances. Certainly the folks at tendervittles.net don't seem to be suffering.

 

[MichaelB]

Do you have a girl friend?

??

 

[ER Man]

??

This was for the OP.