Property Research Framework
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A research framework used to understand how people afford expensive properties in NYC, particularly focusing on $5M+ brownstones.
Research Method Used
- Used Melissa database to look up property records
- Googled names of property owners
- Investigated family records through online sleuthing
- Analyzed 5M+ brownstone owners' employment and backgrounds
Key Findings
- 7 out of 10 owners had modest-income professions:
- Teachers
- Artists
- Professors
- Journalists ($120k/year type jobs)
Cost Breakdown of NYC Luxury Living
- Example $5M Brownstone:
- $1.1M down payment required
- $20k monthly mortgage/interest
- $2-3k additional monthly maintenance
- $50-150k for furnishing
- $40-50k/year for nanny
- $30k/year for food
- Total: $600-700k annual expenses
Income Requirements
- Need $1.2M annual income to break even due to:
- 50% tax rate in NYC/Manhattan
- $600k annual expenses
- Takes 15 years earning $1.5M annually to save $10M (with $25k monthly expenses)
Three Main Ways People Afford These Properties
-
Family wealth/inheritance
- Significant down payment assistance
- Complete property purchase support
-
Early buyers
- Purchased when values were 30-35% of current prices
- Lower monthly payments and property taxes
-
High-income earners
- Finance/Banking
- Law
- Medicine
- Consulting
- Business owners/entrepreneurs
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.