Definition of Net Worth for Manhattan Residents

The primary residence isn't included.

Believe it or not, U.S. dollars are the same whether they're in Houston, San Francisco, Wichita, or Manhattan.

no.. and it's liquid NW. As FP indicates, it does not include your residence(s).

I wonder why TOP is curious on this.

But the answer is no, per my actual DB private bank rep (I am NOT anywhere rich enough to have one, we just have to use one for stock sales because we are public and because of my role at the firm...)

"Believe it or not, U.S. dollars are the same whether they're in Houston, San Francisco, Wichita, or Manhattan."

Ha! Can you imagine a currency exchange, much like if you're planning a trip to, say, China? "Yes dear, before we leave, don't forget to exchange our local dollars with Manhattan currency. And before I forget, have you gotten all your shots?"

OP, not a slam on you whatsoever. I'm just finding the concept funny, because it's really not so far-fetched, when you think about it.

HNW and UHNW are marketing terms that essentially mean nothing. There are only two standards (in SEC terms)that matter - accredited investor and qualified purchaser. For the original poster, QP is above $5,000,000 (relatively) liquid net worth excluding primary residence and AI is above $1,000,000 exluding primary residence. These terms are most commonly used around hedge funds. Most hedge funds (there are exceptions) cannot accept a client that is not considered a qualified purchaser as a client.

It does not matter what state you live in, same rules apply...

http://taft.law.uc.edu/CCL/InvCoAct/sec2.html
http://www.sec.gov/answers/accred.htm

Uhmm, no Cpalms. I GURENTEE you that at JP Mogan Chase, Morgan Stanley, Northern Trust, Citi, DB, or anywhere else, the $25MM+ (and really, $50MM+) liquid net worth people get PRIVATE BANKERS and family office style service. HNW people in the $5MM-$25MM do NOT get this level of service, and get PCs brokers who may have gone to Wharton or Stanford for their MBAs. The mass affluents ($500k-$5mm) get less sparkly brokers.

There is overalap for sure, but the banks and trust banks DEFITELY do not treat mere accedited investors the same as someone who makes $20MM a year.

Definition is the same for Manhattan, except the concentrations vary(along with the associated expenses). As far as primary residence being included, not sure where this comes from but it should at the very least exclude debt on the property.

THanks for the insight- the reason I say that is I keep hearing the residential brokers keep saying that they have all-cash buyers for 3-5 million dollar apartments. To me, these brokers seem out-of-touch with the realities of today.

To me, putting that much CASH into a primary resident seems foolish because $3m cash is a LOT of cash. Are there REALLY that many residents in Manhattan that can put $3m cash at closing?

"THanks for the insight- the reason I say that is I keep hearing the residential brokers keep saying that they have all-cash buyers for 3-5 million dollar apartments. To me, these brokers seem out-of-touch with the realities of today.

To me, putting that much CASH into a primary resident seems foolish because $3m cash is a LOT of cash. Are there REALLY that many residents in Manhattan that can put $3m cash at closing?"

Lots of foreign buyers come in with lots of cash from Asia, Middle East, some Europe and South America. For foreigners it's more difficult to get mortgages so they buy for cash. Don't worry most "normal" Manhattanites can't afford to buy for cash.

3m is a lot of cash for some, but meaningless to others

and in NYC coops, at the high end, many bldgs require mostly if not all cash anyway

perhaps your real folly is to listen at all to any RE broker

"Lots of foreign buyers come in with lots of cash from Asia, Middle East, some Europe and South America. For foreigners it's more difficult to get mortgages so they buy for cash. Don't worry most "normal" Manhattanites can't afford to buy for cash. "

This. And not even super-wealthy ones. They may have ONLY $5MM in TOTAL savings, and put $3MM in NYC real estate (often buying three units in one building for $1MM each, for example.)

If there currency has appreciated versus the dollar a lot (the Euro is still up like 50% over ten years versus the dollar) it might seem like a good investment to many.

Add to that the truly rich Princes and such...

Also, a lot of "cash buyers" are bidding cash to accelerate close and get coop board, seller, etc. comfortable with bid, but then taking a mortgage and taking money off the table post close. Locking up 70% of your savings for a couple weeks / months vs. permanently is much less scary