Terraced house in Alvor – Portfolio lending instead of selling securities
A couple from Saxony – she an HR manager, he an electrical engineer – planned a full move to Portugal within the next three years. Until then, the property was already to be used regularly while both continued their professional work largely from home.
In short
What was this case about?
A couple from Saxony – she an HR manager, he an electrical engineer – planned a full move to Portugal within the next three years. Until then, the property was already to be used regularly while both continued their professional work largely from home.
Why is Alvor especially interesting for owner-occupiers?
Alvor combines an authentic town centre, extensive beaches, the nature reserve at the lagoon and good infrastructure for daily life.
Can renovation costs be financed together with the property purchase?
As a rule the Portuguese bank does not co-finance modernisation — it belongs in the overall plan: equity or raising capital against German property.
Who arranged this?
Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; 15 to 20 banks approached per case. First call free; on completion 1 % of the loan amount.
Price 676,000 €, equity 320,600 €, loan 439,400 €
- Purchase price: 676.000 €
- Renovation: 43.000 €
- Financing required: 439.400 €
- Equity: 320.600 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Living between nature, the Atlantic and Portuguese serenity
Alvor is one of the most charming places on the western Algarve. The former fishing village has preserved its original character and at the same time offers excellent everyday infrastructure. The waterfront promenade, the extensive sandy beaches and the nature reserve of the lagoon create a living environment that many German-speaking buyers deliberately choose for their permanent centre of life.
This practical case shows how buying a terraced house for owner-occupation can be implemented with balanced financing.
Three years until the move, the house already in use
A couple from Saxony – she an HR manager, he an electrical engineer – planned a full move to Portugal within the next three years. Until then, the property was already to be used regularly while both continued their professional work largely from home.
After several viewings, they chose a modern terraced house in a quiet residential complex near the lagoon of Alvor. They were particularly convinced by the short distance to the town centre, the good accessibility of the beaches and the functional floor plan.
760,000 € in total, purchase costs and works included
- Purchase price: 676.000 €
- Additional costs: 41.000 €
- Renovation: 43.000 €
- Total investment: 760.000 €
- Equity: 320.600 €
- Financing required: 439.400 €
Savings and a flat sale, a remainder kept as reserve
The equity came from long-term savings and the sale of an apartment. At the same time, the buyers wanted to keep part of their assets as a reserve in order to be able to arrange their later retirement flexibly.
Before moving in, the house was to be adapted technically and functionally to their own living needs.
43,000 € for kitchen, bath, cooling and a home office
The property was well kept and immediately habitable. The planned investments mainly served to improve living comfort.
Planned were a new fitted kitchen with additional storage, the modernisation of one bathroom, energy-efficient air conditioning with individual room control, the installation of high-quality fitted wardrobes and the conversion of a room into a combined home office and guest room.
As all measures were planned in detail before the purchase contract was concluded, they could be fully incorporated into the total investment.
The loan covers the price, the rest comes from own funds
The financing was set at around 65 % of the purchase price. This kept sufficient equity available while at the same time creating a long-term balanced financing structure.
Alongside the purchase price, all acquisition costs and all planned renovation measures were included in the overall plan from the outset — covered from equity, not by the bank loan. Additional financing steps after the property purchase were therefore not required.
Stays can be extended, with no further investment
Once the work was complete, a comfortable home was created that offers ideal conditions both for the remaining working years and for later retirement.
The buyers were able to extend their stays in Portugal step by step and prepare the final move without additional investments.
Alvor: lagoon and town close by, works budgeted from day one
Alvor offers an attractive combination of nature, proximity to the coast and well-developed infrastructure. Anyone who fully plans the property purchase including all renovation measures creates a robust overall calculation and avoids later financing gaps.
Especially with a permanent move to Portugal, this forward-looking planning pays off.
Frequently asked
Why is Alvor especially interesting for owner-occupiers?
Can renovation costs be financed together with the property purchase?
Why is the existing equity not used in full?
Which properties are especially in demand in Alvor?
Terraced house in Alvor: extra costs and renovation paid from equity
Alvor combines Portuguese serenity with a high quality of life and an exceptional natural landscape. An overall plan that budgets the purchase price, acquisition costs and all planned renovation together already at the property acquisition — the bank loan for the purchase price, costs and renovation from equity — creates the basis for a long-term secure and comfortable centre of life on the Algarve.
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Book a free consultationAnonymised individual case, not a binding statement for other projects · Brokerage under the §34i GewO licence held by Olga Nikushkina (D-W-132-ZUCB-95); Siegfried Perini registered as directly involved person (§11a GewO) · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank