You bought a condo in Hoboken as a "starter home," which costs you $120k upfront...
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You bought a condo in Hoboken as a "starter home," which costs you $120k upfront (year 0) in downpayment. It cost you $32k per year in mortgage payment, HOA, and property taxes between year one and year 10. At the end of year 10, you plan to sell the condo and expect to receive a payout of $330k. You use a discount rate of 6% per year. How much does it cost you to live in that home per year? Please report the equivalent annual cost of the condo. (Hint: year ten cash flow equals $298k, which is the difference between 330k and 32k)
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