What should I do?

Unless you are paying all cash, you might have trouble getting approved by a co-op while not employed I am assuming, right?

I think you are smart to look for a studio. Make sure that the coop allows you
to sublet it. You can always cash it out.

$1.5 million will dissappear into thin air with its purchased power eroded by inflation. Do you have espectations of ever working again? I would spend as little as possible; prices will dip over the next years, but also there is a price to pay for being uprooted and wandering from crappy rental to another, that may interfere with your looking for a new job/bussines. you can always upgrade when you get more business.

1.5 million? buy a small strip mall

You won't be approved for a co-op with only 1.5M if you aren't working. You could look for a condo, but you will have a very hard time finding a DM studio at that price point.

1 million will get you a nice three family in Astoria........ You could live in the basement and wont have to work. Your rental income should pay for food, clothing, a cheap car, etc.

Astoria, Strip-Malls, gee thanks for the help, i think. Why wouldn't a co-op board approve me if I have good credit, etc.

What is wrong with Astoria?

You could live rent free, have a 1000 square foot basement, a front yard, and 500k left over

1.5 will not disappear into thin air....its still a lot of money.....how old are you...also do you have high monthly costs and people to support? if not, you can do really well by purchasing a studio and still have lots of savings left over........but i think you will have trouble getting approved....coops like to see people receiving income.....but im not sure if you have such high assets..

Dont like Astoria? Staten Island is nice. Ferry ride in the morning has nice views.

Oh my god, there are borough people hanging out on this message board.

my wife can go through 1.5 in 6 months lol

Co-ops want to see a certain income to housing cost ratio. In general, with no income, they will require that have assets that can produce income that satisfies a much more conservative income-to-housing cost ratio.

After putting 25% down on a $335K apartment, you would have about $1.4MM in assets. A board would probably assume a 5% yield, giving you a income from your assets of 70K. I don't think that would satisfy any board's income to housing cost ratio for a non-working applicant.

Buy a house in the bronx, brooklyn or queens and all you need is six months payments as reserve.

The right strip mall could get you a 7% (if you are really savvy buyer 8%) return + appreciation.

So I'm in big trouble...I was going to put down 50% on a $350k co-op. It seems everyone is saying I won't be approved. I have no dependents and am 36 years old. I intend to go back to work in the next year or so.

Are you working with a broker? A good buyers broker should be able to steer you towards a board that will be friendlier towards someone without income.

I don't mean to be crass, but $1.5MM is not a tremendous savings in NYC. Boards see it all the time. A seller would hesitate to sell to someone with $1.5MM and no job if there is a bid from someone with the same assets and a job.

1.5 mm is not tremendous savings? sure goes a long way in brooklyn. If you dont like the boroughs, ever been to Weschester?

$1.5 is not a lot of money but i'm buying a studio not a one-two bedroom apart. But thanks everyone.. #19 is giving the best advise by having the broker make sure the bldg. is friendlier.

#19 is gving the best advice? whats wrong with buying a three family in Astoria?

or a strip mall

There are a lot of high net worth individuals in NY. $1.5MM is just not a jaw dropping amount. Many applicants and co-applicants to co-ops have that or a lot more.

FWIW, I work in banking. We call someone with $1.5MM a "mass affluent". We don't consider someone high net worth until they have at least $5MM in investable assets.

These "mass affluents". What is the average they spend on living....... yearly or monthly, not including housing? 1000000 invested in a decent rental property (with a super) could net you 65,000 a year and still leave money left over to buy an apartment (assuming we start with a paltry 1.5 million)

My first thought was to stay put & find work & then get into the market. 4 or 5 or 6 months from now we may all have a better idea as to what the market is doing. Also nobody can see around corners & your next job may want to send you to Atlanta.

Atlanta is even cheaper than brooklyn or queens. 350k can get you a nice new 2500 to 3000 sq ft home.

and you still have money left over for the strip mall....... better cap rates in the south too.

350k and no board approval...... 50% down and you may only need 2 to 3 months reserves.

Mass Affluents have between 50K and 5MM in investable assets. They spend, on average, only $3,500 per month for all expenses. But that is meaningless. You have to look at stratifications by age, geography, etc.

There you go, if you are use to 3500 a month, you can make that off a three family in Astoria and still live in the basement rent free with 500 to 600k left over. Remember a 1000 sqft basement, not a 500 sq ft studio...... you can say goodbye to the futon and have a real bed.

i agree. we just bought and we too are in a weird situation. keep renting , get a job then buy when you are settled

ps but dont spend your million in the meantime

spend the million on a strip mall

OP is talking about buying an apartment FOR HIMSELF. Not everyone wants to be a landlord. Maybe he doesn't want the tasks of screening tenants, maintaing apartments for tenants, dealing with tenants who don't pay, housing court, the risk of not being able to find tenants, etc.

Being a landlord is not for everyone.

50K to 50MM is a huge range.. what percentage of people in Manhattan have 1.5M in assets outside RE? I would guess only 3%. Anyone have real stats?

"Being a landlord is not for everyone."

That's why you have supers and management companies (and strip mall tenants with NNN leases)

In New York you can always find tenants.

I still want to know what is wrong with Astoria?

Yeah, NY doesn't even HAVE housing court. Landlords never have a problem with tenants who don't pay and won't leave.

The range is 50K to 5MM, not 50MM.

There's nothing wrong with Astoria, dear, it's lovely.

Staten Island is even lovelier.

I heard that only 2.9% of the population have > than $1 million in savings.....so, it is a lot of money BUT its important what your expenses are......i just hit the 7 figures and only have expenditures of approx $15k per year(i have a cheap rent in manhattan).....im 46 and not married and no children....i hope to stop working fulltime at 50 and do something part-time....what can my life expectancy be....75 - 80......so, last thing i want to do is die with a ton of money......but if that happens, its all going to Doctors without Borders....

Timing renting vs a "real estate slowdown" is a lot easier if its just you. If you have a family, its not as easy to pick up and move around every year or two so you need to plan farther in advance.

#36 - Are you for real? We're talking about NYC here, where bonuses for jr folks on wall st are 100-250K per year. There is MORE so much floating around Manhattan, it's crazy. 'Normal' income are considered bonus dust to wall streeters.

To number #43 - and of that 2.9%, 2,8% live in NYC and the rest in LA. Also, you ares single and have no children. Children are VERY expensive.

I agree #46.....for me, its more than enough money and for others its not...my point is that it is mostly relative....