Can You Really Afford a Condo? Run the Numbers First

Buying a condo requires looking past the mortgage payment. We audit a $390,000 purchase to show why your budget may fail. David and Maya expected a smart escape from the housing market, but their new condo came with unexpected liabilities. Beyond the $39,000 down payment and monthly mortgage costs, they encountered assessment deficits and the cancellation of master property insurance. This forensic breakdown illustrates why a high housing ratio often signals underlying financial instability. We analyze their specific monthly outflows to determine if this property is an asset or a liability. By reviewing their association dues and debt service, we show how standard underwriting models fail to account for the true cost of homeownership. Calculating your own mortgage costs is the only way to avoid these traps. Subscribe to The Napkin Math for weekly, forensic breakdowns of real estate debt. If you are currently shopping for a home, how has the current market environment changed your budget? Drop your numbers below. 0:00 The Hidden Cost of the Dream Home 1:08 Crunching the Household Numbers 2:42 Why the Reserve Fund Failed 5:39 The Trap of the Special Assessment 9:09 Three Rules for Avoiding HOA Disasters