Living in Jersey Commuting to Grand Central Forum

[Anonymous User]

Incoming first-year corporate associate at one of the big corporate shops walking distance to grand central (STB/DPW). Is it feasible to commute from Jersey City, assuming you're close to one of the PATH trains? I saw on Google Maps the commute ends up being around 35-40 minutes.

My rationale: I figured if I can live in Jersey for at least a couple years I would save a substantial amount of money in at least two ways: (1) Avoid about $6,700 in yearly city taxes; (2) Lowered housing budget (would consider living with roommate in one of the luxury buildings, so I'm guessing between $1,000-1,500, but correct me if I'm wrong). I am pretty much drowning in student loan debt (private undergrad + law school sticker), but I also know I will be swamped with work, so I am trying to figure out a good balance. Any insight is greatly appreciated!

Here's what my budget/savings would look like:

Loan Balance (Federal + Private + Family Loans): $280,000
Post-Tax Paycheck (excluding NY City Tax/withholding/health insurance): $4,287 (bi-weekly); $9,290 (monthly) - For calculations sake assume $9,000
Estimated Combined Monthly Loan Payment: $3,000
NY City Tax (Monthly): $558
NYC Apartment Budget (All-In): $2,500
Monthly Income (after taxes including NYC, loan payments, and housing): $3,000
Misc. (Ubers, Train, Food, Drinks, etc.): $1,500-2,000
NYC Monthly Savings: $1,000-1,500
Jersey Monthly Savings (assuming no NY City Tax, and (-$1,000 from housing): $2,500-3,000

[Anonymous User]

Also interested in this, very similar situation!

[Anonymous User]

Also interested in this but I think $1500/month even for having a roommate is on the low end as a 2 Bed 2 Bath in Hoboken/Newport typically runs about $4000 for luxury apts.

The morning commute should be fine because the PATH train runs every 10 minutes, but my concern is for the return trip because it seems after a certain hour, PATH train runs every 30 mins+ I guess my question is if I use the firm's black car service very often (after 8 or 9 pm) as a first year, will that somehow raise a red flag?

[Monochromatic Oeuvre]

Would be cheaper and faster to just live in the Bronx near one of the Metro North stops, really.

[Pomeranian]

Would be cheaper and faster to just live in the Bronx near one of the Metro North stops, really.

This. Why NJ? It would be much easier to commute from an area serviced by Metro North/Grand Central. Those express trains to places like White Plains (a northern suburb of NYC) are only like 30-40 mins.

[MCFC]

Avoiding the city tax seems to be one of the main considerations.

[Anonymous User]

Avoiding the city tax seems to be one of the main considerations.

OP here. Yes this is one of the main considerations. If I'm not mistaken it applies to anyone living in one of the 5 boroughs of NYC.

As for White Plains/NY Suburbs, I was thinking Jersey City because there are still bars/restaurants within walking distance and it is more of a "young professional area." But I understand you can't have your cake and eat it too. Really just wanted to know if anyone currently does/has done this commute as a junior associate and how feasible it is.

[SplashBro]

Interested in sharing a luxury 2 bedroom 2 baths 35 min from grand central that won't cost you more than 2k a month? PM me.

[crazydavey27]

I haven't done the commute every day but I'm from Jersey and I know the area. It is doable. Take PATH to 33rd and if you walk it it's probably a half hour tops and if you want to take the subway I think you can take the subway to Times sq. and transfer (someone more familiar with the intricacies of the NYC subway can correct me).

Another idea if you can't find something within your price range in Hoboken is finding a place in Weehawken/West New York and taking the ferry. I don't know if that would be cheaper or desirable but you could get off at Pier 79, walk a few blocks to the 34th street station and take the 7 directly to Grand Central.

[Anonymous User]

I did exactly this for a couple of years (from Exchange Place). 35 minutes is pretty accurate, might be closer to 30 mins now that the underground connection from WTC to Fulton St is open. The correct commuting route is to take the PATH to WTC, 4/5 from Fulton to GCT. Don't take the PATH to 33rd St unless you want a very long walk to work (okay in nice weather, terrible on the about 75% of days when it is raining/snowing/very hot/very cold).

Jersey City is a much nicer area than anywhere in the Bronx (well, except Riverdale), where you also still pay city tax, and much more walkable and urban than anywhere in Westchester that people seem to be ignorantly suggesting, plus much more accessible to NYC for non-work purposes. It's a completely rational choice, depending on your priorities. I did leave Jersey City, but chiefly because I became single, and it's definitely easier to date if you live in Manhattan or Brooklyn.

$1000/month is definitely underestimating rent for a luxury building, though. I'd guess around $3.5k for both roommates together for a 2BR, maybe closer to $3k in one of the older luxury buildings. Could go much (much) lower in a non-luxury building, though, down to your $2k estimate or even lower. I imagine it would be cheaper in the new buildings in Journal Square that opened after I left, but Journal Square is kind of crap still.

The city tax benefit is smaller than you're estimating because of the offset from the federal deduction for state/local taxes, but you still save ~$4.5k-ish a year on a first-year salary (180-scale, was closer to $4k/year when I was there) to live outside the city, which is basically a few months' rent.

Taking a car every night is NBD, but I will warn you that the Holland Tunnel can be a traffic disaster randomly even very late at night.

[Anonymous User]

I did exactly this for a couple of years (from Exchange Place). 35 minutes is pretty accurate, might be closer to 30 mins now that the underground connection from WTC to Fulton St is open. The correct commuting route is to take the PATH to WTC, 4/5 from Fulton to GCT. Don't take the PATH to 33rd St unless you want a very long walk to work (okay in nice weather, terrible on the about 75% of days when it is raining/snowing/very hot/very cold).

Jersey City is a much nicer area than anywhere in the Bronx (well, except Riverdale), where you also still pay city tax, and much more walkable and urban than anywhere in Westchester that people seem to be ignorantly suggesting, plus much more accessible to NYC for non-work purposes. It's a completely rational choice, depending on your priorities. I did leave Jersey City, but chiefly because I became single, and it's definitely easier to date if you live in Manhattan or Brooklyn.

$1000/month is definitely underestimating rent for a luxury building, though. I'd guess around $3.5k for both roommates together for a 2BR, maybe closer to $3k in one of the older luxury buildings. Could go much (much) lower in a non-luxury building, though, down to your $2k estimate or even lower. I imagine it would be cheaper in the new buildings in Journal Square that opened after I left, but Journal Square is kind of crap still.

The city tax benefit is smaller than you're estimating because of the offset from the federal deduction for state/local taxes, but you still save ~$4.5k-ish a year on a first-year salary (180-scale, was closer to $4k/year when I was there) to live outside the city, which is basically a few months' rent.

Taking a car every night is NBD, but I will warn you that the Holland Tunnel can be a traffic disaster randomly even very late at night.

OP here. This is very helpful - thank you! Also, just one follow up: As for it being NBD taking a car every night (and assuming to/from on weekends), do you mean the firm you are/were at allows associates to car service to/from Jersey City?

Thanks again!

[1styearlateral]

Not sure why anyone has to post anon lol.

Path doesn't go to GC. Jersey regional rail goes into Penn Station. Metro North goes into GC. There's a shuttle between Penn and GC.

[1styearlateral]

OP here. This is very helpful - thank you! Also, just one follow up: As for it being NBD taking a car every night (and assuming to/from on weekends), do you mean the firm you are/were at allows associates to car service to/from Jersey City?

AFAIK, this is very common, so yes.

[Monochromatic Oeuvre]

Not sure why anyone has to post anon lol.

Path doesn't go to GC. Jersey regional rail goes into Penn Station. Metro North goes into GC. There's a shuttle between Penn and GC.

No there isn't. You still have to get on the subway.

[spyke123]

I think taking the PATH train to WTC is the TCR here (and take 4/5 express trains to GC). There is just no easy way to get to GC from 33rd station (unless you want to walk).

Another thing to remember: you are going to have to get a monthly PATH pass on top of monthly MetroCard. Don't forget to factor that in.

[1styearlateral]

Not sure why anyone has to post anon lol.

Path doesn't go to GC. Jersey regional rail goes into Penn Station. Metro North goes into GC. There's a shuttle between Penn and GC.

No there isn't. You still have to get on the subway.

You're correct I'm thinking of Port Authority, not Penn. Good catch.

[Anonymous User]

I used these two calculators to plug in a salary of $180,000 (omitting bonuses and bar stipends, if your firm gives those out instead of salary advances), and claiming a standard deduction.

With state tax, you'd take home an estimated $118,491.70.
With state + city tax, you'd take home an estimated $115,420.

This seems to suggest that the actual difference (probably due to deducting from federal and state), is only about $3000. A monthly PATH commuter card costs $89, which comes out to $1068. It seems like if your commute includes transferring to MTA, you'd have to pay the $116 monthly pass on top of that, so it seems like you should just subtract $1000 ish from the $3000 you're saving in taxes, leaving you with saving only $2000.

Am I looking at this the wrong way? I was really set on moving to Jersey because I mistakenly assumed that I'd be saving $6700 or so in city tax, but it seems like $2000 is a nice perk, but not the amount of extra cash that I had initially hoped. To be fair, there are obviously other things Jersey offers, like newer housing stock, less congestion, cheaper rent compared to some Manhattan neighborhoods, so I might still move there, but saving just $2000 in city taxes makes it less of a consideration.

Calcuators used
http://www.tax-rates.org
https://smartasset.com/taxes/new-york-tax-calculator

(Maybe these calculators aren't accurate).

[misterjames]

Not sure why anyone has to post anon lol.

Path doesn't go to GC. Jersey regional rail goes into Penn Station. Metro North goes into GC. There's a shuttle between Penn and GC.

No there isn't. You still have to get on the subway.

You're correct I'm thinking of Port Authority, not Penn. Good catch.

There is also no shuttle between Port Authority and GC. There is a shuttle between Times Square and GC.

[WokeUpInACar]

I used these two calculators to plug in a salary of $180,000 (omitting bonuses and bar stipends, if your firm gives those out instead of salary advances), and claiming a standard deduction.

With state tax, you'd take home an estimated $118,491.70.
With state + city tax, you'd take home an estimated $115,420.

This seems to suggest that the actual difference (probably due to deducting from federal and state), is only about $3000. A monthly PATH commuter card costs $89, which comes out to $1068. It seems like if your commute includes transferring to MTA, you'd have to pay the $116 monthly pass on top of that, so it seems like you should just subtract $1000 ish from the $3000 you're saving in taxes, leaving you with saving only $2000.

Am I looking at this the wrong way? I was really set on moving to Jersey because I mistakenly assumed that I'd be saving $6700 or so in city tax, but it seems like $2000 is a nice perk, but not the amount of extra cash that I had initially hoped. To be fair, there are obviously other things Jersey offers, like newer housing stock, less congestion, cheaper rent compared to some Manhattan neighborhoods, so I might still move there, but saving just $2000 in city taxes makes it less of a consideration.

Calcuators used
http://www.tax-rates.org
https://smartasset.com/taxes/new-york-tax-calculator

(Maybe these calculators aren't accurate).

I really don't think those are accurate. NYC tax on $180k is $6450. IF you itemize, you can deduct that from your federal taxes, which will save you ~$2200-2300, making the NJ savings ~$4100-4200. If you don't itemize, the whole $6450 is savings. Further, there's at least some time-value of money to be gained by bigger paychecks ($537 more per month) in the taxable year by never paying NYC tax rather than paying it but receiving a larger tax return the following year after the deduction.

[dixiecupdrinking]

It's absolutely true that the extra PATH fare substantially cuts into the savings. I get this on paper but I think it's penny wise pound foolish. You can live in LIC instead, which is basically the same as the JC waterfront, and buy yourself an extra 45 minutes a day of free time for something like $250-300 a month all things considered.

[Anonymous User]

I lived in JC for a couple of years - best decision I made. Paid off my loans much more quickly and also saved up some money. I highly recommend it. The commute will probably be around 45 minutes by the way, but worth it IMO.

A 2 bed in a nice building I think will cost around 3k, maybe 2800 depending on the building...you can definitely find a room for 1500 in a shared lux apartment.

Also you can pay for your PATH card using PRE tax money...most firms have this program so you don't need to pay it using post tax money, saving you like a few hundred each year.