First-time buyer in Berlin: how much cash to keep after an €805,000 purchase?

T

table.clever

First-time buyer
I need to ring-fence cash for genuine emergencies before deciding what can be spent on furniture.

Buying the 3-bed serviced apartment in Berlin for about €805,000 would leave roughly €37,720 after the deposit and estimated purchase costs. That balance still has to cover moving, the initial mortgage payment, service charges, any insurance excess and work identified by the inspection. A failed boiler, for example, cannot be postponed in the same way as furnishing a spare room.

How would you split the money into an untouched emergency reserve and separate allowances for immediate repairs, moving and essentials? My next step is to establish exactly what the service arrangement covers and whether any major communal work is under discussion before setting the repair figure.
 
I’d keep at least €20,000 completely untouched, then tentatively assign €8,000 to inspection-related work, €4,000 to moving and €2,000 to essential furniture. That leaves €3,720 for timing surprises around the first mortgage payment or service charges.

Those numbers should change after the inspection, but separating the emergency money now stops repairs and furniture gradually consuming it.
 
What does “serviced” cover in this particular apartment? Before choosing a repair allowance, establish which building-level items are covered through the service charges and which costs fall directly on you. Also ask whether any substantial communal work is already being discussed. A roof issue is very different from replacing an appliance inside the flat.
 
I’m less comfortable with Giulia’s fixed €20,000 emergency figure before knowing your monthly essential spending. An emergency fund is better expressed as enough months of unavoidable outgoings, including the new mortgage and service charges.

I’d also avoid treating the insurance excess as if it covered every defect. Wear, maintenance and issues already visible at purchase may simply be cash repairs. Let the inspection determine whether €8,000 is remotely suitable.
 
Moving tends to contain several small costs rather than one dramatic bill, so write out the whole transition: movers, possible overlap between homes, cleaning, storage and any essential setup. Confirm the timing of the first mortgage payment with the lender rather than estimating it.

For furniture, I’d fund only beds, lighting and whatever is needed to live normally. Empty rooms are cheaper than putting necessary repairs on credit.
 
Liam’s distinction matters. My suggested €8,000 repair pot only makes sense if the expensive building components are dealt with collectively and there is no known major work looming. If the inspection or information about the building points the other way, I would reduce the purchase budget rather than shrink the emergency reserve.

Nadia is also right that the €20,000 should be tested against the buyer’s actual monthly commitments, not accepted as a universal number.
 
I’d make the decision in this order: complete the inspection, clarify what the service charges cover, list known first-year work, confirm mortgage-payment timing, and calculate several months of essential household costs. Add moving expenses and the relevant insurance excess separately.

If the resulting total is close to or above €37,720 before discretionary furniture, that is useful evidence that €805,000 is too near your ceiling—not a reason to make the buffer more optimistic.
 
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