How much is the initial cost to start living alone? Here are some tips to keep costs down

Many people start living alone when they go on to college or get a job. How much is the initial cost for living alone, and how much is the monthly living cost? I would like to prepare in advance so that I can start living alone with peace of mind. This time, we will introduce the initial costs and monthly costs necessary for living alone.

What is the initial cost to start living alone?

In order to start living alone, you need to pay a lump sum of money at once. Here is a breakdown of the initial cost and an estimated amount.

Expenses required for the rental contract

If you live alone, many people will sign a contract for a rental property such as an apartment or condominium. If you sign a contract with a real estate brokerage company, you will need to pay the following expenses at the time of signing the contract in addition to the monthly rent.

・Deposit

One to two months worth of rent is the market price. Some places don't need student properties. The landlord will take care of it, restore it to its original condition when you move out, and refund the remaining amount.

・key money

One to two months worth of rent is the market price. I will pay as a thank you to the landlord.

・Previous rent

One month's rent is the market price. Rent is paid in advance.

・Brokerage fee

The market price is 0.5 to 1 month's rent + consumption tax. This is a fee paid to a real estate agency, and the upper limit is determined by law as one month's rent.

・Fire insurance premium

The market price is around 5,000 yen to 15,000 yen. This insurance covers damages such as fire, theft, and water leakage. Guarantee fee: (rent + common service fee) x 0.5 to 1 month's market price. Pay when a contract with a rent guarantee company is required.

Moving costs

Moving fees vary considerably depending on the amount of luggage, the distance traveled, and the timing of the move. From March to mid-April, when many people move, is the busy season for moving companies.

In addition, although there are some differences in moving fees for single-person households when viewed by area, the general guideline is around 40,000 to 60,000 yen.

Purchase cost of furniture and home appliances

What kind of furniture and home appliances should I put in a room where I live alone? In order to live without inconvenience, it seems that there are many cases where furniture and home appliances introduced next are arranged.

[Furniture for living alone] Beds, tables, chairs, desks, sofas, storage furniture, curtains, rugs and carpets

Beds, tables, desks, sofas, etc. can be purchased from the 10,000 yen range if they are cheap. However, many people seem to be particular about the quality of the bed when they start living alone. You can buy prefabricated furniture at low prices online. If you have shutters and shutters, you probably don't need heavy curtains. Many curtains, rugs, and carpets can be purchased for less than 10,000 yen.

[Electric appliances for single living] ・Refrigerator: 1 door from 10,000 yen ・Washing machine: 4.5 kg from 20,000 yen ・TV: Cheap from 10,000 yen ・Rice cooker: 3・Microwave: from about 5,000 yen for cheap ・Electric kettle: from about 1,000 yen for 1 liter ・Gas stove: from about 20,000 yen for a 2-burner compact size ・Air conditioner: 3 for 6 tatami mats From the 10,000 yen range ・Lighting: from the 2,000 yen range for 6 tatami mats ・Vacuum cleaner: from the 10,000 yen range for cheap items

Some properties for single-person households are equipped with air conditioners and IH stoves. Please note that stoves are compatible with city gas and propane gas. At least the microwave is inconvenient without it. In addition, it would be nice to have a hair dryer, iron, Wi-Fi router, oven toaster, fan, etc. if necessary.

How to reduce the initial cost of living alone?

It costs a lot of money to start living alone. In particular, it will cost a lot of money until the basics of life are set to some extent. The first big expense is the initial cost when you sign a contract for a rental property. First of all, if the property is not decided, neither moving nor purchasing plans for furniture and home appliances will proceed.

Here, we will introduce tips to reduce the cost of renting a property, moving, furniture and home appliances.

Choose a property with a low initial cost

If you want to keep the initial cost of a rental property as low as possible, one way is to choose a property that does not require a security deposit, key money, or brokerage fee. However, even if the security deposit is free, you may be charged a restoration fee when you move out. The difference is whether you deposit it first or pay it later, but you don't have to prepare a large initial cost.

Also, although the number of properties is small, there is also a method of choosing free rent properties where rent is free for a certain period of time. Free rent is a method used by landlords who want to avoid being vacant for a long time. However, if you move in for a short period of time and cancel the rental contract, you may be charged a penalty. It is important to check the contract details carefully.

Moving in the off season

If you can choose when to move, we recommend that you aim for the off-season in June and August. People tend to avoid moving during the rainy and hot seasons, so discounts are larger than in other months.

On the other hand, from February to April, there are a lot of people moving, so the fee will be higher. If you want to save even a little, you can save money on moving fees by choosing weekdays rather than weekends, non-Taian or Tomobiki, and free flights that do not have a designated time than morning flights.

Buy second-hand furniture and home appliances

If you are away from home or are a student temporarily living alone, even if you have furniture and home appliances, most of them will not be needed when you return home. In that case, it is recommended to buy furniture and home appliances cheaply using recycle shops and flea market apps. For those who are starting to live alone in earnest, and those who do not want to spend money on furniture and home appliances, let's consider second-hand items.

You may find unused items such as new and old items, exhibits, and items in fairly good condition. Check second-hand furniture for signs of wear and tear. When purchasing second-hand home appliances, it is safe to buy one that comes with a guarantee of operation and warranty.

What is the estimated monthly cost for living alone?

Once you start living on your own, it may be difficult to imagine how much your monthly expenses will cost. Here, we will introduce the average household expenses of a single-person household living in a rented house, as well as tips for keeping monthly expenses in check.

Average income and expenditure of single-person households

According to the 2020 household budget survey, the average monthly expenditure for a person living alone in a rental house such as an apartment or condominium is about 170,000 yen per month. Monthly expenses are higher than rent. However, the numbers are just averages for a wide range of age groups, so it's possible to save more. Here are some tips to help you save on those expenses.

Tips for keeping monthly costs down

If you live alone and don't cook for yourself, I recommend eating out less and cooking as much as possible. By making it in bulk, you can reduce the cost per meal without wasting ingredients. Also, let's be conscious of reducing the waste of electricity, gas, and water, and save water utility bills.

If you want to keep your fixed expenses down, you can save on rent and initial costs and renewal fees by avoiding properties that are close to the station or relatively new. However, depending on the property you choose, transportation and utility costs may be extra, so you need to think about it as a whole.

Summary

As an initial cost to start living alone, 4.5 to 5 months' rent will be charged when you sign a rental property contract. In addition, you will also have to pay for moving expenses and buying appliances. Plan your spending so that your monthly income matches your living expenses, and cut back wherever possible. In order to do so, it is necessary to take measures such as renting a property with the lowest possible rent and saving on food and utility bills.

(Last update date: 2022.01.04) *The content of this article is based on the information at the time of writing. The system and contents may change after publication, so please check the latest information on each website. ~This article is also read~Do you really need it? Tips for not failing in choosing furniture for living aloneHow many times a week? The frequency of washing clothes and efficient washing techniques for living alone The 25m2 room that is most suitable for living alone, and what is the No. 1 “preferred floor plan” that an experienced person thinks? ~Related Links~Simulate the amount you can borrow for a home loanSimulate how much you can save by refinancing your home loanMake an appointment to visit an ARUHI store