What’s a liquid asset requirement?
“This should consist of at least two years of housing costs after closing on the property,” says King-Brown. “The building wants to make sure that the buyer has the financial health in order to maintain maintenance fees [for co-ops] or common charges and taxes [for condos] once they own.”
This means that anyone looking to buy an apartment in the $500,000-$1,000,000 range (which is on the LOW END in NYC. Like seriously, good luck finding less than that), should have a couple hundred thousand dollars left over in their bank account after the purchase.
Considering you sit in a cubicle and subsist on happy hours that tout half-priced appetizers, this should be no problem for you.
So... when is the right time to buy?
The honest answer for most New Yorkers is never. There’s a reason why this city is a renters market. But hypothetically, if you have been in New York for 10 years, are in your early- to mid-30s, and are looking to spend $3,000-$5,000 in rent per month, then it WOULD make sense to buy. And you would be looking at a half-million dollar apartment, which would be a big one-bedroom in Manhattan (or an even bigger one-bedroom in Brooklyn). You would put 20-30% percent down and still have more than $200,000 left over after the closing. If this is you, congratulations. And also, drinks are on you.