This Is How Much Monica’s Apartment in Friends Would Cost Today?
Is it possible to live like the Friends cast today?
In the hit television show Friends, Monica, Rachel, Phoebe, Ross, Chandler and Joey spent a lot of time hanging out in an iconic apartment in Greenwich Village.
It had two bedrooms and a terrace, along with an open concept living area and kitchen – and people have since pointed out that it would likely have been unaffordable if “your job’s a joke” and “you’re broke.”
But let’s do an experiment and move the apartment from New York in 1994 to Vancouver in 2022.
What would the rent be? How much income would you have to make to live there? And would you be better off buying a condo and paying down the mortgage?
Let’s start with the rent
The average two-bedroom apartment in Vancouver cost $3,490 monthly on October 5, 2022.[1] A recent listing in downtown Vancouver for a two-bedroom apartment with two bathrooms (one more than Monica and Rachel had) and a balcony was going for $3,595 – in a similar range. So, we’ll go with the average.
People often say that no more than 30% of your pre-tax income should go toward rent. So, to comfortably afford $3,490 a month, it would be ideal if you were earning $11,633 a month, or $139,600 a year.
That’s a very high bar for young adults, just starting their careers, even if the rent is being split between two.
But don’t give up on living like the Friends crew just yet. Maybe you can have just as much fun in an apartment outside the centre of the city.
Maybe you can compromise on the balcony. Maybe one bedroom will do. It can help to make a list of must-haves and nice-to-have features before you start apartment hunting.
Is it better to rent or own?
Seriously consider whether it’s better to rent or own. A $500,000 mortgage, requiring a $25,000 down payment, that charges 5% interest over 25-year amortization would cost $2,908.02 monthly, leaving some room for condo fees. And, with each payment, you’d own a little bit more of the property.
Even if you sell before you pay it off completely, you’ll have built-up equity you can use for your next down payment.
If you decide to rent for a while to give yourself time to save up for a mortgage down payment, make a plan to help ensure you reach your goal. Effective strategies include:
Create a realistic budget and decide exactly how much you can put toward saving for a home.
Set up monthly transfers of that amount into a dedicated savings account and watch the balance grow.
Direct any extra money that comes your way – for example, a tax refund or bonus – into the dedicated savings account.
Keep your credit score healthy by paying all your bills on time and learning about practising safe credit.
Remember you can access up to $35,000 from your Registered Retirement Savings Plan (RRSP) through the Home Buyers’ Plan to put toward the down payment on your first home.
Get your very own Friends condo
Everyone’s situation is different, which is why it’s a great idea to sit down with your local Prospera team to chat about how you can get into the apartment or condo of your dreams.
Once you move in, just remember never to bet your home on whether you know what Chandler does for a living.
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