Is 1 million yen really necessary for initial expenses when moving into your first apartment on your own?
It's often said that you need 1 million yen for the initial costs of living alone, but this can be a bit of an exaggeration, and the actual costs vary from person to person.
The initial costs include a security deposit, key money, and brokerage fees equivalent to 4 to 5 months' rent, as well as moving expenses and the cost of purchasing furniture and appliances.
For example, if you choose a property with high rent in an urban area, it's true that these costs can add up and end up costing nearly 1 million yen. However, by looking for properties with no security deposit or key money, using secondhand furniture, and adjusting the timing of your move, it's entirely possible to reduce initial costs to around 500,000 yen.
Many people become anxious when they hear that they "need 1 million yen," but it really depends on the individual case. First, it's important to understand the breakdown of expenses and choose a lifestyle that suits you.
Is 1 million yen too much for initial expenses when living alone? Check the average amount and guidelines.
The typical initial costs for living alone are around 500,000 to 700,000 yen. This includes the security deposit, key money, brokerage fee, and advance rent at the time of the rental agreement, as well as moving expenses and the cost of purchasing basic furniture and appliances.
While this amount will increase depending on the region where rent is high, anything over 1 million yen can still be considered somewhat on the higher side.
In particular, you can significantly reduce initial costs by utilizing "zero-zero properties" (properties that don't require a security deposit or key money) or properties with free rent periods. The reality is that you don't need to force yourself to come up with 1 million yen.
What is the case of someone who actually spent 1 million yen on initial expenses to live alone?
Cases where initial costs reach 1 million yen mainly occur when several conditions are met, such as "living in a popular area in the city center," "buying all new furniture and appliances," and "moving during peak season."
For example, let's consider a property with a rent of 80,000 yen.
- Security deposit and key money: 1 month's rent each
- Brokerage fee: 1 month's rent
- Moving expenses: 100,000 yen
- Purchase of furniture and home appliances: 300,000 yen
- Total: approximately 900,000 yen
In addition, if you include the purchase of daily necessities and contingency funds, the total exceeds 1 million yen. Knowing this pattern will allow you to take measures to prevent unnecessary spending.
Many people find that the initial costs of living alone can be kept under 1 million yen.
Many people keep their initial living expenses for living alone under 1 million yen. By choosing an area with low rent, looking for properties with no security deposit or key money, and utilizing secondhand or hand-me-down furniture and appliances, it's possible to keep initial expenses between 500,000 and 700,000 yen.
You can also save a significant amount of money by moving yourself and avoiding unnecessary optional contracts. If you plan carefully in advance and limit your expenses to the bare minimum, "starting to live alone for under 1 million yen" becomes a realistic goal.
What are the main initial costs involved when living alone?
Starting to live alone involves various initial costs in addition to rent.
The following are some typical examples:
- Security deposit, key money, and brokerage fees when signing a rental agreement
- Moving expenses
- Cost of purchasing furniture and home appliances
- Costs for preparing daily necessities, etc.
Furthermore, you'll need to set aside funds for living expenses immediately after moving. In total, depending on the region and conditions, initial costs are estimated to be between 500,000 and 1,000,000 yen. Knowing what expenses you'll need in advance will allow you to create a manageable moving plan.
Costs incurred when signing a rental agreement (security deposit, key money, brokerage fee, etc.)
The initial costs incurred when signing a rental agreement are generally estimated to be equivalent to 4 to 5 months' rent.
Main breakdown
- Security deposit: This is a deposit used to cover the cost of restoring the property to its original condition upon vacating, and is usually equivalent to about one month's rent.
- Key money: A gratuity paid to the landlord upon signing a contract. This is a non-refundable fee and is typically equivalent to one month's rent.
- Brokerage fee: This is the fee paid to the real estate company, and in most cases it is equivalent to one month's rent plus consumption tax.
- Advance rent (for the current month and the following month)
- Fire insurance premium: 10,000 to 20,000 yen
- Guarantor company fee: Approximately 30% to 50% of the rent
When you add all of these up, the expenses can sometimes exceed your expectations. If you want to keep costs down as much as possible, it's recommended to actively look for or inquire about "zero-zero properties" (properties with no security deposit or key money) or rental properties that are currently running promotions. Initial cost conditions vary greatly depending on the property, so be sure to check the details with the real estate company before signing a contract.
Estimated moving costs
Moving costs vary greatly depending on the distance, the amount of belongings, and the time of year. For a single person's move, the average cost is around 30,000 to 50,000 yen for short distances and 80,000 to 100,000 yen for longer distances. Prices tend to be higher during peak season (March to April), so considering moving during the off-season can help you save money.
Furthermore, you can significantly reduce costs by being resourceful, such as reducing the amount of luggage and using a light truck plan, or renting a car to transport the items yourself. Requesting quotes from multiple companies is also a smart approach.
Cost of purchasing furniture and home appliances
It's common to spend between 100,000 and 300,000 yen on furniture and appliances. Even at the bare minimum, you'll need a refrigerator, washing machine, microwave, bed, lighting, and curtains.
Buying everything new will increase costs, but you can save a lot by using second-hand shops and flea market apps. Also, consider using appliance rental services or furnished apartments.
Instead of trying to buy everything at once, you can reduce expenses by purchasing items in order of necessity.
Initial purchase costs for household goods and daily necessities
When starting a new life, you'll need various household items such as dishes, detergent, cleaning supplies, garbage bags, cooking utensils, bath towels, and shampoo.
While each item may be inexpensive, buying them all together often costs between 20,000 and 50,000 yen. Kitchen supplies and cleaning tools, in particular, are needed immediately, so make a list before moving and carefully select only what you need. You can especially save money by using 100-yen shops and buying in bulk.
It's also a good idea to buy additional items after you've actually started living alone.
Should I set aside money separately for my first month's living expenses?
When starting to live alone, it is extremely important to set aside not only initial expenses but also "living expenses for the first month."
Even just the basic monthly expenses, including rent, utilities (electricity, gas, water), food, communication costs (smartphone, Wi-Fi), and daily necessities, can amount to around 100,000 to 150,000 yen. Furthermore, immediately after moving, there are many additional expenses such as purchasing furniture and appliances, curtains, and storage items, making it a time when money can go out more than expected.
If you use up all your savings on initial expenses, you risk not being able to manage your life afterward. Therefore, it's ideal to keep at least one month's worth of living expenses, and ideally two months' worth, on hand. By creating a financial plan with some leeway, you can start your new life with peace of mind, both mentally and financially. Along with estimating initial expenses, don't forget to prepare for living expenses as well.
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Simulation of total initial costs by rent level
The initial costs of living alone vary greatly depending on the rent of the property. Generally, the initial costs when signing a rental agreement are estimated to be "4 to 5 months' worth of rent."
Adding moving expenses and the cost of purchasing furniture and appliances will give you a clearer picture of the total expenses. Here, we will simulate the initial costs for three different cases: rent of 40,000 yen, 70,000 yen, and 100,000 yen.
Please use this as a reference when choosing a rent range that fits your budget.
Case of rent of 40,000 yen
For a property with a monthly rent of 40,000 yen, the initial costs at the time of signing the contract are approximately 160,000 to 200,000 yen (equivalent to 4 to 5 months' rent).
- Moving expenses: around 50,000 yen
- Let's assume that furniture, home appliances, and household goods will cost around 150,000 yen.
- Total: Approximately 350,000 to 400,000 yen
Rent is cheaper in rural areas and suburbs, and many properties do not require a security deposit or key money, making this a recommended rent range for those who want to keep initial costs down. With some ingenuity, it's even possible to move in for around 300,000 yen.
Case of rent of 70,000 yen
For a monthly rent of 70,000 yen, the initial costs at the time of signing the contract are approximately 280,000 to 350,000 yen.
- Moving expenses: 80,000 yen
- Let's assume that furniture and appliances will cost around 200,000 yen.
- Total: Approximately 550,000 to 650,000 yen
This price range is popular among people considering living alone in urban areas, and you can find well-balanced options in terms of location and amenities. However, in popular areas, security deposits and key money may be set higher, so you should pay close attention to the contract terms.
Case of rent of 100,000 yen
For properties with a monthly rent of 100,000 yen, initial costs are often around 400,000 to 500,000 yen.
- Moving expenses: 80,000 to 120,000 yen
- Furniture and home appliances: 200,000 to 300,000 yen
- Total: Approximately 700,000 to 900,000 yen
This rent range is chosen by people who prioritize amenities and location, and those with a preference for luxury, but it also means a larger initial investment. Furthermore, living expenses tend to be higher, so it's important to balance this with a steady income. This is a case for people who want to start living alone with some financial leeway.
How to keep initial costs under 1 million yen
The initial costs of living alone can be kept under 1 million yen with a little ingenuity. Significant savings can be expected, especially by carefully considering rental contract fees, furniture and appliance purchases, and the timing of the move. Properties with no security deposit or key money, rentals with free rent periods, utilizing the off-season for moving, and making effective use of secondhand items are particularly effective. Shared housing is another option that can reduce the burden of both initial costs and living expenses. We will explain each of these points in detail below.
Search for properties with no security deposit or key money.
Security deposits and key money are major expenses when signing a rental agreement, but recently, there has been an increase in properties that do not require a security deposit or key money, known as "zero-zero properties."
For example, if you're looking for a property with a monthly rent of 100,000 yen, you would normally have to pay 200,000 yen in security deposit and key money. By choosing a property with zero deposit and zero key money, you can save this amount. If you want to significantly reduce initial costs, it's effective to include these types of properties in your search criteria. Some real estate agencies even have search services specifically for zero deposit and zero key money properties, so be sure to take advantage of them.
Take advantage of free rent and promotional properties.
A "free rent property" is a rental property where the rent for the first one to two months after moving in is free.
This can reduce the burden of paying advance rent and living expenses for the first month. Additionally, properties currently on sale may offer benefits such as discounts on brokerage fees or free appliances.
By cleverly utilizing these options, you can sometimes save over 100,000 yen on initial costs. Check rental search websites for "free rent" and "campaign" offers to find properties that minimize initial expenses. By reducing initial costs, you'll have more money left over for future living expenses.
Saving money by choosing the right moving time and moving company.
Moving costs vary greatly depending on the time of year and the moving company you choose. March and April, in particular, are peak seasons due to new beginnings and job transfers, and costs can easily be 1.5 to 2 times higher than usual. If you want to keep costs down as much as possible, it is effective to plan your move during off-peak seasons such as May to September or November to January.
Also, instead of sticking to just one moving company, a good tip for saving money is to use a comparison site to get quotes from multiple companies. Some companies offer advantageous plans such as "single person packages" or "no time restrictions" plans. Furthermore, you can reduce costs even more by reducing the amount of luggage, scheduling the move on a weekday, or using flexible time slots.
Moving can be very different depending on the timing and how you choose your options, so start preparing early and find the best plan for you.
Utilizing secondhand furniture and home appliances
Buying a complete set of new furniture and appliances can cost around 200,000 to 300,000 yen, but you can sometimes reduce the cost to less than half by using second-hand items. You can often find furniture and appliances in good condition at bargain prices at recycling shops and flea market apps (such as Mercari and Jimoty).
Large appliances such as refrigerators, washing machines, and microwave ovens can be significantly reduced in value simply by choosing older models or second-hand items. If you want to keep initial costs down, utilizing second-hand products is a very effective method.
We are also considering a shared house.
If you want to significantly reduce the initial costs of living alone, using a shared house is an option you should consider.
Most share houses do not require a security deposit or key money, and furniture and appliances are already provided, so you don't need to make any large expenses immediately after moving in. Furthermore, a "flat-rate" system that includes water, electricity, gas, and internet is the norm, making it easy to keep track of your monthly living expenses, which is a major advantage. You can also save the money you save on initial costs.
Share houses offer more flexible contract terms than regular rentals, often allowing move-ins for just a few months, making them popular for short-term stays or temporary housing during job changes or transfers. They are especially recommended for those living alone in urban areas where rent is high, as they want to keep costs down. In recent years, stylish properties with good design and amenities have become more common, attracting attention, particularly among younger generations. If cost-effectiveness is a priority, you should definitely consider living in a share house.
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[Real-life experiences] Actual initial costs of living alone
The initial costs of living alone vary greatly depending on the area you live in, the type of property you choose, and your lifestyle. Here, we'll share the experiences of three people who have actually started living alone, showing what kinds of expenses are involved and where the differences lie.
By understanding real figures and the reasons behind the choices, you should be able to form a more concrete image of your own moving plans.
University student A, who is living alone for the first time.
A, who started living alone to attend university in Tokyo, chose a 1K apartment with a monthly rent of 70,000 yen.
The initial costs for the rental agreement were approximately 300,000 yen, moving expenses were 60,000 yen, furniture and appliances cost 150,000 yen, and household goods cost about 30,000 yen, for a total of 540,000 yen.
Although the property required a security deposit and key money, A was able to stay within budget by purchasing some secondhand furniture and appliances. A said, "I wanted to keep costs down as much as possible, but I chose a relatively new property because I prioritized safety."
Company employee B, who moved to Tokyo from a rural area.
Company employee B, who was transferred from a rural area to Tokyo, chose a property near the station with a monthly rent of 90,000 yen, prioritizing the convenience of commuting. The rental contract costs, including the security deposit, key money, brokerage fee, guarantee company fee, and fire insurance, amounted to approximately 450,000 yen. In addition, moving expenses were 120,000 yen, furniture and appliances were all new so cost 300,000 yen, and living expenses were about 30,000 yen, bringing the total to approximately 900,000 yen.
"It was a very satisfying start, but it ended up costing more than we expected," he said.
What were Ms. C's clever ways to keep her expenses under 500,000 yen?
Wanting to minimize initial costs, Ms. C chose a property with no security deposit or key money and a monthly rent of 50,000 yen.
With one month of free rent included, the initial rent burden was reduced, and the contract costs came down to just 180,000 yen.
I managed to keep the total cost of furniture and appliances under 70,000 yen by using services like Jimoty (a Japanese online classifieds site) and getting things from acquaintances. I rented a light truck and moved myself, which cost about 10,000 yen. I also used 100-yen shops for household goods, bringing the total initial cost to about 470,000 yen.
They realized that "with some ingenuity, it's possible to do things this cheaply."
summary
It's often thought that the initial costs of living alone "cost around 1 million yen," but in reality, it varies greatly depending on the area you live in, the rent, the condition of the property, and the method of moving.
The average rent is around 500,000 to 700,000 yen, but with some ingenuity, it's entirely possible to keep initial costs under 500,000 yen. Properties in rural areas and suburbs tend to have lower initial costs, so choosing an area that fits your budget is a good strategy. You don't necessarily need to prepare 1 million yen; the appeal of living alone is that you can start with peace of mind if you keep a few key points in mind.
First, make sure you understand all the necessary expenses and create a realistic financial plan that suits your lifestyle. By planning carefully, you can start your new life with both financial and mental peace of mind.
