First-time buyer in Mexico City: how much cash should remain after closing?

K

key.nimble

Homeowner
I would prefer to buy below my borrowing limit, but I do not yet know whether MX$522,000 provides enough breathing room. That is the approximate cash remaining after the deposit and estimated closing costs on a 4-bed Mexico City townhouse priced near MX$9,000,000.

The answer seems to depend less on the headline balance than on my essential monthly spending once the mortgage begins. I also need to allow for the move, inspection findings that cannot wait, basic furnishings and a separate reserve for loss of income.

Which amounts should be confirmed before I decide what is genuinely spare? I am particularly unsure about townhouse service charges, insurance deductibles and when the initial mortgage instalment falls due.
 
I’d set aside the emergency fund first and treat it as unavailable for the house. Then reserve money for moving and any inspection items affecting water, electricity, security or habitability. Furniture would come last and could be spread over several months. A 4-bed place creates plenty of temptation to furnish empty rooms immediately, but those rooms can wait.
 
The missing number is your essential monthly spending after the purchase, including the mortgage. MX$522,000 could be comfortable or tight depending on that figure.

Also, does your estimate already include the first mortgage payment, insurance, moving deposits and any townhouse service charges? I’d want those confirmed before assigning the remainder to repairs or furniture.
 
I wouldn’t measure the buffer mainly against the MX$9,000,000 purchase price. The better comparison is how many months of required spending it covers after allowing for known work.

My order would be: closing-related surprises, urgent inspection findings, emergency living expenses, moving, then basic furniture. Decorative work and furnishing all four bedrooms would be postponed.
 
I partly disagree with creating several fixed buckets now. Before the inspection, that can give a false sense of precision. One repair could consume the entire planned repair allowance.

Keep most of the MX$522,000 uncommitted until you have the report, insurance terms and confirmed recurring charges. You can divide what remains afterward.
 
One practical step: make a single cash calendar covering the period from signing through the first few months. Put the remaining purchase payments, moving date, first mortgage payment, insurance payment and any service charge due dates on it. Then list inspection work as urgent, soon or optional. That shows whether the issue is the total buffer or several bills landing together.
 
That helps. The MX$522,000 is after the deposit and estimated closing costs, but I haven’t yet confirmed the first mortgage payment date, service charges or the insurance excess. The inspection also hasn’t happened, so the repair figure is still unknown.

I’m leaning toward furnishing only the rooms we will use immediately and keeping the rest untouched until those amounts are clear. I’ll also calculate the buffer in months of essential spending rather than as a percentage of the price.
 
That sounds more cautious. Before deciding whether MX$522,000 is enough, ask for the recurring townhouse charges and payment schedule, confirm exactly what the closing estimate excludes, and wait for the inspection.

Then subtract moving costs, the first mortgage payment and the highest-priority work. If the remaining emergency fund feels too thin in monthly terms, reducing the purchase price is cleaner than assuming repairs or furniture can always be delayed.
 
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