2016 is coming to an end, and I am creating my annual budget for 2017. I am trying to decide whether or not it would be beneficial to move to a less expensive neighborhood. So I thought I would compare a 2 bedroom apartment in Manhattan NY to a 2 bedroom apartment in the Bronx NY.
Most people don’t like to move, unless there it is imperative. By this I mean a lifer altering occasion, marriage, divorce, family death, etc. So I want to use the ten year plan for my study.
I started with a search on Streeteasy.com for a 2 bedroom Bronx NY apartment. I found 9 Bronx NY apartments for rent listed in the neighborhood of Parckchester. Looking at the neighborhood, it appears there is a lot of shopping, and easy access to different types of transportation. The average price for a 2 bedroom, 1 bath apartment is $1666 per month or $19,992 per year. If you multiply that out over 10 years, you will spend $199,920, just on rent.
So I went back to streeteasy.com and did the same search in Midtown Manahattan. I sorted the list of 112 apartments by least expensive, and selected the 1st 9 on the list. The average rent came to $2829 per month or 33,948 annualy. Again, multiply that out over a period of 10 years, and that is $339,480 for rent.
I didn’t choose any of those fancy luxury apartments, because I am just an average working guy with a job. On a monthly basis, I could really use the $1100 towards other expenses, or save if for a down payment on a house. Over the course of a year, I could save almost $14,000. I could buy a decent used car for that. When you look at the 10 year span, we’re talking just over $139,500.
I think it might be a good idea for me to get a bronx rental apartment. With the savings over a period of ten years, I could use that money as a decent down payment on a 3 bedroom house in Brownsville.