Friday, March 11, 2005

A fool and his money are soon parted

Sometimes, just to see what insanity is going on in the Manhattan housing market, I read pieces from the Real Estate section of the New York Times. There's an article today about how co-op boards are requiring buyers to have a ridiculous amount of liquid assets, beyond the down payment, in order to approve their bids. While the whole article just demonstrates that [in my opinion] you have to be slightly mentally deficient to live in Manhattan, here's my favorite quote from it:

Ms. Kleier said she is working with a client in his 20's who is shopping for a condo in the $4 million range because he doesn't have the liquid assets to buy a co-op. He is typical of clients who are "making several million a year but also spending several million a year and just haven't gotten ahead and accumulated the liquid assets that they need," she said. For young people with that kind of money, she said, these condos are stepping stones to the life they eventually envision.

Never mind the "in his 20's and shopping for a $4 million condo" bit. What I want to know is -- how exactly do you spend several million a year, especially when you're in your 20s and don't have a family ? Even while earning, at a guess, 10-30 times less than this young man, my MS income supported Christina and me, plus lots of toys, comfortably. I can't even begin to imagine what I would have done with millions of dollars a year. And I don't fully buy the "Well, it's Manhattan, everything is crazy expensive" defense either; sure, that counts for some, but, c'mon, it's not 10-30 times more expensive than Seattle. This guy must be using $100 bills to light cigarettes.

The only conclusion I can come to is: money, like youth, is wasted on the young. Or at least people in their 20's; I, at the ripe old age of 30, would definitely know what to do with it ;-)


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