How much cash do you need to buy property?
Down payment plus fees, reserves, moving, and repairs — the real cash target.
You need far more than the down payment: budget the down payment plus roughly 6–10% of the price in closing costs, an emergency and repair reserve, and moving and immediate work — a ¥60 million used condo can need ¥11.8–15.8 million in cash.
Key points
- You need the down payment plus roughly 6–10% of the price in closing costs.
- Add an emergency and repair reserve of at least ¥1.5–3 million.
- Include moving, immediate work, and prorated taxes and insurance.
- A ¥60 million used condo can need ¥11.8–15.8 million in cash; a ¥50 million new condo ¥8.8–13.0 million.
The real cash target
Buying requires substantially more cash than the down payment. On top of it, budget brokerage, loan fees, registration, taxes, insurance, deposits, repairs, moving, and reserves — which together commonly add several million yen. A useful rule is the down payment plus roughly 6–10% of the price in closing costs, plus an emergency and repair reserve. Do not use all your savings for the down payment; you need liquidity for the fees, the first repairs, and life.
Two worked examples
Example A — a ¥60 million used condominium with 10% down: ¥6 million down, plus a maximum-style brokerage estimate of about ¥2.046 million, a 2.20% mortgage fee of ¥1.188 million, ¥0.5–0.9 million registration and judicial-scrivener costs, ¥80,000–200,000 inspection and appraisal, ¥200,000–500,000 stamp/insurance/prorations, up to ¥500,000+ acquisition tax after relief, ¥300,000–1.5 million moving and immediate work, and a ¥1.5–3 million reserve — a practical cash target of about ¥11.8–15.8 million.
Example B — a ¥50 million new developer-sold condominium with no buyer brokerage: ¥5 million down (10%), a 2.20% fee on ¥45 million of ¥990,000, ¥0.4–0.8 million registration and scrivener, ¥150,000–400,000 initial management/repair payments and prorations, ¥250,000–800,000 insurance/stamp/moving, ¥500,000–2 million options and furnishings, and a ¥1.5–3 million reserve — a practical cash target of about ¥8.8–13.0 million. These are planning estimates; assessed values, relief, and fee models can change them.
Who this is for
- Buyers planning their cash
- Anyone saving toward a purchase
What this is not
- A statutory quote
- Do not use all your savings for the down payment; keep cash for the 6–10% closing costs and a reserve.
Frequently asked questions
What cash do I need beyond the price?
The down payment plus roughly 6–10% of the price in closing costs, plus an emergency and repair reserve.
What fees are outside the property price?
Brokerage, loan, registration, tax, insurance, inspection, renovation, moving, and reserves.
Should I use all my savings for the down payment?
No. Retain cash for the 6–10% closing costs and an emergency and repair reserve.