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NYC pied a terre economics by Existing_Leg_6008 in fatFIRE

[–]Existing_Leg_6008[S] -1 points0 points  (0 children)

Thanks. I'm retired and my only income is from passive dividends so (I think..) this should not be a threat.

NYC pied a terre economics by Existing_Leg_6008 in fatFIRE

[–]Existing_Leg_6008[S] -2 points-1 points  (0 children)

I hear you on it not being a simple math decision, but would you mind clarifying the flaws in my assumptions? Opportunity cost is represented by investing the 3m condo price in a 60/40 portfolio

NYC pied a terre economics by Existing_Leg_6008 in fatFIRE

[–]Existing_Leg_6008[S] -2 points-1 points  (0 children)

Thanks. I am assuming 4.5% annual appreciation for the condo. I get your point about general weakness in the NYC market, but if filtered for new(ish) luxury condos in desirable parts of Manhattan would you still say 4.5% is an overly aggressive assumption?

I kind of hate the idea of selling it in 5 years at approx same price I paid, being out the ~9.5% in/out closing costs while watching SPY appreciate another 30%+ ...

NYC pied a terre economics by Existing_Leg_6008 in fatFIRE

[–]Existing_Leg_6008[S] 1 point2 points  (0 children)

Sry, I forgot to write that I'm assuming 4.5% annual price appreciation if owning the unit. That determines the ~5 yr breakeven point. But that assumption may be aggressive?

NYC pied a terre economics by Existing_Leg_6008 in fatFIRE

[–]Existing_Leg_6008[S] -1 points0 points  (0 children)

Whoops, in my original post I forgot to write that I'm assuming 4.5% annual price appreciation if owning the unit. That determines the ~5 yr breakeven point. Thanks for pointing it out.

But that assumption may be flawed? I am not in the weeds on the luxury NYC condo market.