I sold company stock for 2M dollars after tax, equity treated as capital gains. I received 1.4M of that already, will receive the remaining 600k in 6 months.
For context this is in NYC, and my salary is 300k/y. (I pay around 120k of that in taxes which leaves me with around 180k/y after tax.) I currently pay 65k/y in rent, have no debt and an ~830credit score and have around 100k in savings and stocks.
I've been thinking of buying an apartment for a long time, but I don't know if it makes sense for me. For starters out of those 2M I need to reinvest 500k-1M right away, the amount depends on whether I buy an apartment or not, when, and the down payment of it. As some of you might know, NYC prices are high. I've been looking at similar apartments in my neighborhood and 1 bedrooms are around 1.5M, 2 bedrooms go for around 2M. (Moving out of Manhattan is out of the question, I'm open to consider a different neighborhood.)
I've done some modeling and I think I can maintain my lifestyle while paying from 7k up to 10k a month for a mortgage. (This is before deduction which can be up to around 20k/y.)
For the breakdown, my monthly expenses are of around 3,500 a month. For a mortgage I'd put at least 20% down, but for a more expensive apartment (2M) I'd mandatorily put more (up to 33% down) to bring the monthly payments down. My bank would also give me an interest rate of around 3.5%-3.75%. While I think my modeling is solid and it shows I can still save up to ~50k a year depending on the mortgage payments, I'm hesitant to get a mortgage on the upper bound.
So I'm interested in knowing what others think of this. Does buying a 1.5-2M apartment make sense for me, or should I keep paying rent and invest in a cheaper apartment 600k-1M to rent out in a different neighborhood? Another thing is that I think I need general advice on how to save money on taxes or whatnot. I don't think I give myself the time to properly manage it all, I just usually receive my paycheck and carry on. (For example the IRS currently owes me at least 15k, and I haven't had the time to claim it.) I will get an accountant to help me with all of that, but if there's anything someone thinks I should know, file, invest in, etc. I'd appreciate it.
So all advice is welcome, thank you.
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