How much money should I have in hand before buying a mansion?

4 comments

1. Duplicate of [https://www.reddit.com/r/JapanFinance/comments/169d8e8/how_much_money_should_i_have_in_hand_when_buying/](https://www.reddit.com/r/JapanFinance/comments/169d8e8/how_much_money_should_i_have_in_hand_when_buying/) (for those who want to follow the convo there)

2. Anecdotal but our big cash payment was about 5% of the value of the mansion, which covered the loan fees and a variety of other costs. This is based on a loan for 100% of the purchase price. This is a big chunk of savings of course, but we made sure it didn’t eat up all of our cash on hand.

   There was a little bit of money going back and forth after we send this, as we ended up having some left over after covering costs which would have been refunded, but then added options (aircons, etc.) which ate up that money and then some so we ended up paying a bit more.

   If you are going to need to buy appliances, furniture, curtains, etc., these can all add up pretty quickly if you’re not paying attention. If you have most of this stuff already, then its not all that bad. We were somewhere in between, as we already had our bedroom and living room furniture as well as TV and newish washer and fridge, but needed to get 3 aircons and giant curtains.

   My rough advice would be to have a minimum of 5% of the price readily available for various fees and settlement costs, and push that up to as much as 10% if you expect lots of shopping to need to make it livable and/or want to have a buffer.

3. Depending on the bank, etc., It’s possible to have and fees baked into the loan amount.

   I paid 30 man all in for one property, and 2 man for another.

   Banks are usually willing to go the extra distance for investment property loans as opposed to home loans, since they’ll be charging a higher interest rate.

   Thank you,
   Noah Silva

4. If you give more information, like how much cash you have, what your salary is like etc… you may get more pertinent comments.