How much cash should remain after buying a Tokyo condo?

[EarlyGlass]

¥1,377,000 is the figure driving my decision. That is roughly what would remain after the deposit and estimated purchase costs on a 4-bed Tokyo condo priced around ¥42,840,000.

The regular mortgage looks manageable, but that remaining cash would also have to cover the move, initial service charges, the first mortgage payment, the insurance excess and any work that cannot wait after inspection. Furniture and cosmetic changes are reversible choices; committing nearly all the cash to the purchase is not.

How much would you ring-fence as an emergency fund before assigning anything to those other categories? I am leaning toward a cheaper condo if this balance is too thin, rather than depending on the inspection finding nothing urgent.

 

[sailsAndQuill]

I would treat the emergency fund as untouchable, then work backward from the rest. Moving and essential repairs come before furniture, which can be bought gradually. ¥1,377,000 may be uncomfortable if it is your entire remaining cash balance rather than money left after a separate emergency reserve.

 

[RemiWest]

Does your closing-cost estimate include the timing of the first mortgage payment, initial service charges and the insurance payment? Also, what exactly counts as “ordinary first-year work” in your estimate? A few cosmetic inspection comments are very different from something that must be fixed before moving in.

 

[signal.local]

I would not decide whether the buffer is adequate from the purchase price alone. List several months of essential household spending, including the new mortgage and condo charges, and compare that with ¥1,377,000. The inspection and the condo’s building information should then determine how much extra you ring-fence for repairs.

 

[SimpleLane]

I’m not convinced ¥1,377,000 is automatically too little. It depends on income stability, monthly outgoings and whether the condo is ready to occupy. Make three first-year budgets: low, expected and unpleasant. Include moving, insurance excess, immediate repairs and overlapping payment dates. Leave furniture out except for items genuinely needed on day one.

 

[BenFlint]

A 4-bed can create pressure to furnish every room immediately, but empty rooms are cheaper than draining the reserve. I would sort inspection findings into urgent, first-year and cosmetic items, then seek cost estimates for anything urgent before committing. If the unpleasant budget leaves almost no emergency cash, that is a strong argument for buying below the current maximum.

 

[uma_budgets]

The useful dividing line is between predictable costs and true surprises. Put moving, scheduled payments and known work in the first category; keep a separate reserve for income disruption, an insurance excess or an unexpected repair. If ¥1,377,000 has to cover both categories, I would postpone furniture and reconsider the price ceiling once the inspection results arrive.