A personal goal of mine for quite some time has been to buy property here in NYC.
It isn’t news that NYC/Manhattan/Brooklyn real estate is pretty pricey. The down payment for a home in these areas is usually in the six-figure to multiple six-figure range.
Gratefully, since business has grown and we've had more extra income, this is something we were looking to do in the near future.
At the same time, I couldn’t ignore the need to question:
“Does it actually make financial sense to buy a property in New York City?”
“Is this actually an investment that serves me?”
So, I walked through the other considerations:
NYC has high property taxes (I believe some of the highest in the US), and the apartments we’d be looking at would have relatively large fees associated either with being a co-op or condo in order to live there, on top of the mortgage…all of which would cut into the ROI.
Another big factor for me and my values, if you buy a property, your assets are no longer liquid. Meaning, if I needed those resources for the business (which is a priority to keep pressure-free for multiple reasons), I would need to pull that cash out of our property in some way.
And, this says nothing for the cost of the loan, upkeep, and length of time we’d need to stay put to start to see the numbers flip in our favor if we sold given the current market.
I wondered, at what point do all of those fees really negate your ability to get a return on your investment? And at what point does it make sense financially to rent instead of paying a loan, taxes, homeowner's fees, insurance, and any upgrades so you can invest that same money elsewhere?
I am by no means a financial advisor or real estate expert (cough, cough, legal disclaimer), but I grew up with the messaging that renting is “throwing away your money” and the smart, financial thing to do is save your money and buy a home.
And, while, ABSOLUTELY, there are situations where buying a home makes financial sense (including here in NYC) - on a personal AND financial level - in a city like New York, when I ran the numbers, I could see, personal satisfaction put aside, they didn’t add up in my favor…and, if I were to take that same down payment money and invest it elsewhere, I’d likely end up with a larger return over time.
(Here’s a great podcast episode I found when I was questioning this “rule” that helped validate this thinking: The Chris Harder Show, Should You Rent or Buy)
By questioning this “rule” I’d learned from society around owning a home, I was able to make a better financial decision for myself and my family.
You might be thinking, “Kim, I own a home. And, what exactly does this have to do with me and my business?” You might not come up with the same answers as me, but the same thought process applies to you and your approach to business.
How many rules have you been taught that just seem to be the truth and the way things are when it comes to business and making money?
How many actions do you take or strive for, simply because that’s how it’s always been done?
While, yes, there’s no need to reinvent the wheel, and we can all learn from those in front of us - part of making money and creating an impact on your terms is about learning to question the “rules” instead of blindly accepting them as truth.
As a CEO, your growth (monetary, mindset, impact) asks you to think outside the box and see things in a new light. It asks you to get clear on the right problem to solve and allow yourself to ask questions.
Sometimes your answers will be the same (not everything needs to be rewritten!), but it’s that willingness to look deeper at the “rules”, to question them, (as Adam Grant says and teaches) to ‘think again’, that yields new rules, innovation, new ways of thinking that create the pathway to your version of business success and making more money on your terms.
What “rules” around business are you questioning (or could you) right now? Is there anything you want to “think again”? Hit “reply” and let me know!
Wishing you your version of success!
P.S. Ready to stop playing small, shrinking back, and wasting all that mental energy so you can take up space like a boss and get paid? Let’s talk.
Book a free coaching consultation here to talk about how I can help you build, grow, and scale a profitable business on your terms and snag one of the new spots we’ve opened up (and likely one of the last for the year)!