Sydney first home: is A$60,800 enough cash left after settlement?

Two approaches both seem defensible: keep the purchase target high and rely on the remaining cash, or spend less so the first year is easier to absorb. I am looking at a 5-bed detached home in Sydney for about A$1,847,000, with an estimated A$60,800 left after the deposit and settlement costs.

Before making an offer, I want to allow for moving expenses, the insurance excess and any inspection items that need prompt attention. Most furniture could be postponed. How much of the A$60,800 would you treat as completely untouchable, and what findings would make you decide the house is simply too expensive?

To clarify, I’m not expecting to furnish all five bedrooms immediately. I’m more concerned about ring-fencing enough for the first mortgage payment, an insurance excess and anything the inspection says cannot wait. Furniture can be gradual.

I’d separate the money before allocating anything to furniture: untouchable household emergency fund, settlement-to-first-payment cash, moving and setup costs, then a repair reserve. Only what remains goes toward furniture. A large home can absorb money through lots of minor purchases, so using existing furniture for six months would protect the buffer.

Has the inspection already happened, and does the A$60,800 remain after allowing for the first mortgage payment? Those two details change the answer. A report identifying roof, drainage or electrical work would justify a much larger repair pot than a report limited to cosmetic wear.

Without the inspection report and firm moving quotes, fixed allocations would be guesswork. I would leave most of the A$60,800 unassigned and sort any defects into work that cannot wait, work for the next year and cosmetic improvements.

Once the urgent category is priced, the choice becomes clearer: proceed if those costs still leave the emergency reserve intact, or reduce the offer or walk away if they consume it. That is more useful than deciding in advance that a set percentage belongs to repairs.

Also confirm every recurring property cost rather than focusing only on settlement. Insurance, utilities and the mortgage start quickly, and it is worth checking whether any service charges or other levies attach to the property. Then stress-test the plan against one repair plus the insurance excess occurring in the same month. If that combination empties the reserve, the purchase price may be too close to your ceiling.

The proposed stress test makes sense, although I would want the figures written down before relying on it. Make a first-year sheet covering the move, first mortgage payment, insurance excess, urgent inspection work and the emergency cash that cannot be spent.

Then keep essential items such as required appliances or window coverings separate from spare-bedroom furniture. If A$60,800 covers the first list with a comfortable remainder, the house may be workable. If it only works by postponing necessary repairs or touching the protected cash, the offer needs to come down from A$1,847,000.