How much of my CZK 928,000 buffer should remain untouched after buying?

G

gardensAndCorner

Buyer
Established
I have updated the purchase figures, and they leave me with a new budgeting question. The three-bedroom detached home in Prague is around CZK 7,772,000, with approximately CZK 928,000 remaining once the deposit and expected closing expenses are covered.

My concern is that this headline balance includes money that may soon be needed for moving, the first mortgage instalment, insurance excess and inspection-related work. I also need to check whether this property has service charges or shared costs. My tentative rule is to preserve a genuine emergency reserve if the remaining cash can cover urgent repairs separately; if it cannot, I should reconsider the price rather than rely on postponing necessary work. Does that seem like the right way to test affordability? Furniture beyond the basics can wait.
 
I’d keep the emergency fund separate first, based on several months of your essential household spending rather than a convenient round number. Then reserve money for inspection findings, moving and the first mortgage payment. Furniture would come last: beds, a table and basic storage are enough initially. Also check whether the house has any service charges or shared-development costs that your closing estimate missed.
 
That ordering helps. My current estimate combines too many things under “money left after closing,” when some of it is really already committed. I haven’t yet separated the first payment, moving, insurance and likely inspection items from the genuine emergency reserve. I’ll redo it that way and treat most furniture as optional. The service-charge point is also something I need to confirm for this particular property.
 
What condition are the expensive parts in? A vague allowance for “ordinary work” is hard to judge without knowing what the inspection says about the roof, heating, electrics, plumbing and moisture. A long list of cosmetic jobs is very different from one urgent major defect. I would wait for that report before deciding whether CZK 928,000 is comfortably enough.
 
I’d be cautious about ring-fencing too much while postponing every improvement. Some work is cheaper and less disruptive before furniture arrives, especially painting or flooring. The distinction I’d use is not repair versus furniture, but urgent, easier-before-moving, and purely optional. Get quotes for the first two groups, then see what remains without touching the emergency fund.
 
Build a simple first-year cash calendar, not just four pots. Put the expected completion expenses, move, first mortgage payment, insurance and its excess, any service charges, and inspection-led work against the month when each could actually fall due. That exposes timing problems. Keep a separate contingency for things the inspection cannot predict, and avoid ordering nonessential furniture until you have lived in the house for a while.
 
One caveat: don’t assume an inspection will turn uncertainty into exact costs. It can identify concerns, but quotes may still vary and opening up a wall or floor can change the scope. If the numbers only work when every repair lands at the low estimate, the purchase is probably too close to the limit. A slightly cheaper house can be worth more than a perfectly furnished one in year one.
 
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