NYC Apartments

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orangecup
Posts: 266
Joined: Fri Dec 06, 2013 11:41 pm

NYC Apartments

Postby orangecup » Sat Feb 14, 2015 10:37 am

I know, I know - there have been a million threads on this. But I wanted to get advice on my specific situation.

When I start looking for places (mid-May), I will have roughly 7500-8000 in the bank due to loans, which should cover security deposit + first month's rent (3500/month with my GF).

Based on what recruiting has told me, my firm may not provide advances in nearly enough time for when I apartment hunt (they said near or right after graduation, which is mid-end of May). Will this be problematic? I've read some threads where people have said that landlords sometimes require more capital up front if the start-date is far off and you have a low value in the bank.

If so, would it be wise to simply take out 15k extra in loans (I know, interest) rather than the interest-free advance? Alternatively, would it be sufficient if I told them that I would be receiving an advance shortly?

If it matters my gf and I both have credit scores between 750-800.

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Avian
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Re: NYC Apartments

Postby Avian » Sat Feb 14, 2015 10:52 am

You really have to work it out with the landlord since it will depend on their policy. You should also be aware that some places will want first and last month's rent. Many landlords will also take a guarantor who makes 80x the monthly rent if there is a question about your ability to pay.

If you're going to start looking in May, why not take out what you need in loans and then you can make a cancelation payment in 120 days if you don't need it.

orangecup
Posts: 266
Joined: Fri Dec 06, 2013 11:41 pm

Re: NYC Apartments

Postby orangecup » Sat Feb 14, 2015 11:03 am

Hmm okay. What do you mean by cancellation payment? Just repaying whatever excess in loans I took out once I begin working (and effectively eating a few months worth of interest)?

Also, in my preliminary search a lot of places are rated fairly poorly. Is this just a reality? Or is it worth it to go through a broker even if it costs a fair amount more?

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lonerider
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Re: NYC Apartments

Postby lonerider » Sat Feb 14, 2015 11:11 am

Airbnb for a month while you're looking and waiting for the advance to hit your account.

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Avian
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Re: NYC Apartments

Postby Avian » Sat Feb 14, 2015 12:12 pm

orangecup wrote:Hmm okay. What do you mean by cancellation payment? Just repaying whatever excess in loans I took out once I begin working (and effectively eating a few months worth of interest)?

Also, in my preliminary search a lot of places are rated fairly poorly. Is this just a reality? Or is it worth it to go through a broker even if it costs a fair amount more?


For Stafford, Grad PLUS, or Parent PLUS loans you have the option of paying within 120 days from disbursement and having it apply as a refund. From my loan provider on applying the payment as a refund, "You aren't charged interest or fees on the amount you return. Applying payments as a refund is in your best financial interest because it's like you never borrowed the refunded amount in the first place."

The whole broker/non-broker decision really depends on how much time you have to look for housing. If you have a week or two to go around the city and look for things on your own you might be able to find something. A lot of people I know who worked through a broker were able to find an apartment within a day or two, but the 15% fee is a pretty steep charge. If you're not familiar with the city and/or don't have time to look around it could make sense. Lonerider's idea to airbnd while you search might be a good way to do it without having to stay in a hotel or something for a week.

orangecup
Posts: 266
Joined: Fri Dec 06, 2013 11:41 pm

Re: NYC Apartments

Postby orangecup » Sat Feb 14, 2015 12:27 pm

Avian wrote:
orangecup wrote:Hmm okay. What do you mean by cancellation payment? Just repaying whatever excess in loans I took out once I begin working (and effectively eating a few months worth of interest)?

Also, in my preliminary search a lot of places are rated fairly poorly. Is this just a reality? Or is it worth it to go through a broker even if it costs a fair amount more?


For Stafford, Grad PLUS, or Parent PLUS loans you have the option of paying within 120 days from disbursement and having it apply as a refund. From my loan provider on applying the payment as a refund, "You aren't charged interest or fees on the amount you return. Applying payments as a refund is in your best financial interest because it's like you never borrowed the refunded amount in the first place."

The whole broker/non-broker decision really depends on how much time you have to look for housing. If you have a week or two to go around the city and look for things on your own you might be able to find something. A lot of people I know who worked through a broker were able to find an apartment within a day or two, but the 15% fee is a pretty steep charge. If you're not familiar with the city and/or don't have time to look around it could make sense. Lonerider's idea to airbnd while you search might be a good way to do it without having to stay in a hotel or something for a week.


That would be perfect. So my best course of action may be to take out an additional 15k in loans to ensure I have enough capital up front, and then once I receive the advance "refund" the loans? Can I refund a portion of what was disbursed (e.g., 15k disbursed, 10k refund with no interest/fees)? And is it generally pretty pain-free to refund the loans?

I live in NYC now so I'm familiar with the city and have the time to look around. I was just a little disconcerted by all the poor reviews of buildings on Yelp/ApartmentRatings.

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Avian
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Re: NYC Apartments

Postby Avian » Sat Feb 14, 2015 1:04 pm

orangecup wrote:That would be perfect. So my best course of action may be to take out an additional 15k in loans to ensure I have enough capital up front, and then once I receive the advance "refund" the loans? Can I refund a portion of what was disbursed (e.g., 15k disbursed, 10k refund with no interest/fees)? And is it generally pretty pain-free to refund the loans?


It may make sense to do that. Naturally you should check with your loan provider to make sure the same terms apply. Another thing to be mindful of is you should be able to make refund payments during your grace period after you leave school which is usually 6 months, but you don't want to accidently fail to refund before the grace period is over. But depending when the money is disbursed your 120 days may end up being before the grace period ends anyway. I have made refund payments when I needed time to transfer money from my investment accounts and used the loan money to pay for tuition directly at first. You can refund any amount. For my loan provider it was as simple as making a payment online and checking a box specifying that I wanted it applied as a refund.

orangecup
Posts: 266
Joined: Fri Dec 06, 2013 11:41 pm

Re: NYC Apartments

Postby orangecup » Sat Feb 14, 2015 1:25 pm

Avian wrote:It may make sense to do that. Naturally you should check with your loan provider to make sure the same terms apply. Another thing to be mindful of is you should be able to make refund payments during your grace period after you leave school which is usually 6 months, but you don't want to accidently fail to refund before the grace period is over. But depending when the money is disbursed your 120 days may end up being before the grace period ends anyway. I have made refund payments when I needed time to transfer money from my investment accounts and used the loan money to pay for tuition directly at first. You can refund any amount. For my loan provider it was as simple as making a payment online and checking a box specifying that I wanted it applied as a refund.


I'll give the general fed loan servicing number a call next week and double check everything. Based on when I plan on taking out my loans, the 120 refund period should end before the grace period ends.




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