http://streeteasy.com/nyc/for-rent/nyc/rental_type:frbo,brokernofee,brokerfee|price:15000- Gives you an idea what 35k a month will get you in NYC. Scroll down halfway.
Exactly. That's like me paying less than $200/month in rent on my current income. Wow. I wish I was better at basketball.
$450,000 a year on rent doesn't seem like much with a $15M salary but you have to factor that he'll be retiring in 2 years, taxes cuts that in half, plus his agents cut. He's not going to make $15M a year forever, why not buy a property and have the value increase over time and rent it out if he ever leaves New York.
As of March 2013, Pierce had $169,486,218 in career earnings. Not counting endorsements of any kind. Take out whatever you want for taxes and agents. I think he'll be OK.
Deduct 40% for taxes and 10% agent fees he's left with $80M max but I'm sure he's spent a lot it already over the last 16 seasons. He's not on the same level of endorsements as Kobe or even TMac. I'm sure he's fine but just saying...
I don't really think you can define what 'smart' for him would be. Even if it may not be smart, it's also not dumb. If it makes him/his family happy and he has the means, then there's no problem.
Yeah, $35k a month is probably not even 5% of his take home pay. If Carmelo goes bankrupt one day, it won't be because of that.
They say you can afford about 1/3 of your income as rent/house payment. So using that quota, Pierce has $26.67 million to work with for housing for his life, if he doesn't make another dime. At his current rate, he could live at that place for about 64 years without making another dime and still have over $50 million to play with for the rest of his life (of course this ignores inflation, raise in rent). He'll be fine.
how do you know Pierce doesn't already have a bunch of property/investments that will make him money long term?
35k per month is nothing to Pierce. You can get much more expensive places in NY, LA, or Miami. I'd say this is a mild monthly payment for a millionaire athlete.
This is somewhat my point. Maybe this list isn't all inclusive. But if it is, in a city like NYC, there's still only 314 listings with monthly rent above $15k. Conversely, there are nearly 2k properties for sale in NYC price above $4 million Why, because once you get past a certainly monthly rent number, it makes less and less sense to rent. You only rent when you know you are going to be a short-timer, or you have serious concerns about future housing market prices, etc. But this is even more true of really rich folks and really high end homes. Zuckerberg for example has a mortgage on his home. Why... because he got a 1.05% rate... as close to free as you can get. There's relationships at play with bankers, there's the virtual 0% risk a really really rich person would default, and then there's still the underlying collateral of the house. Correctly noted, though... the really rich are also non-logical at times, and do whatever they want.
