How much cash should remain after buying an PHP 80.62m home?

[CandidTable]

PHP 1,450,000 is the amount that would remain after the deposit and estimated closing costs, and that is what is making me question the purchase. The property is a four-bedroom country home priced at about PHP 80,620,000.

The inspection is not complete, so I do not yet know what work might be needed soon after moving. My first priority would be a genuine emergency reserve, but moving expenses, essential repairs, service charges, the insurance excess and the initial mortgage instalment would all come from the same cash. Furniture could wait.

Would you set a minimum untouched buffer first and spend only the surplus, or treat this as a sign to choose a less expensive home until the inspection and recurring costs are known?

 

[CommonSlate]

I would not divide the whole PHP 1.45m yet. Ring-fence the emergency fund and first mortgage payment first, then reserve realistic amounts for moving and only inspection-related repairs that cannot wait. Furniture comes last; a 4-bed does not need to be fully furnished on day one.

At under 2% of the purchase price, that remaining cash looks tight to me, especially before the inspection findings are known.

 

[CommonSlate]

The missing number is your normal monthly outgoings, including the mortgage. PHP 1.45m could represent a reasonable runway for one household and a very short one for another. Also, are the service charges and insurance costs confirmed estimates, or placeholders? I would get those figures and the first-payment date before deciding the buffer is sufficient.

 

[ink.early]

I partly disagree with judging the buffer mainly as a percentage of the price. The better test is whether it covers several months of essential spending plus the likely near-term property costs. Still, the inspection could change everything.

Make three lists: must pay before or at move-in, repairs needed within the first year, and optional furniture. Obtain repair quotes for significant findings, confirm recurring charges and insurance excess, and keep a separate contingency for vacancy between closing and moving. If the essential total consumes most of PHP 1.45m, buying below your maximum sounds sensible.