Financing a detached house in Caniço – Living permanently with a sea view on Madeira
A couple from North Rhine-Westphalia, both long-standing tax advisers, were planning a permanent move to Madeira after entering retirement. They were looking for a detached house in Caniço with a sea view, a low-maintenance garden and enough room for regular family visits.
In short
What was this case about?
A couple from North Rhine-Westphalia, both long-standing tax advisers, were planning a permanent move to Madeira after entering retirement. They were looking for a detached house in Caniço with a sea view, a low-maintenance garden and enough room for regular family visits.
Can modernisation be included directly in the financing?
As a rule the Portuguese bank does not co-finance modernisation — it belongs in the overall plan: equity or raising capital against German property.
Does financing make sense even though there is enough equity?
Many buyers want to keep their asset structure balanced and preserve financial reserves for the future.
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.
€790,000 house, €537,200 loan, €362,800 equity
- Purchase price: 790.000 €
- Renovation: 70.500 €
- Financing required: 537.200 €
- Equity: 362.800 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Property for sale in Caniço: finding a new home between Funchal and the east coast
Caniço is one of the most popular places to live on Madeira. Its proximity to the island capital Funchal, good infrastructure and quiet residential areas make it especially attractive for German-speaking buyers who want to move their centre of life permanently to Portugal. Detached houses often offer plenty of living space but require individual modernisation before moving in.
Retirement first, then the sea-view house in Caniço
A couple from North Rhine-Westphalia, both long-standing tax advisers, were planning a permanent move to Madeira after entering retirement. They were looking for a detached house in Caniço with a sea view, a low-maintenance garden and enough room for regular family visits. The chosen house was in very good structural condition but was to be adapted technically and aesthetically to their own ideas.
€900,000 all in, €70,500 for the modernisation
- Purchase price: 790.000 €
- Additional costs: 39.500 €
- Renovation: 70.500 €
- Total investment: 900.000 €
- Equity: 362.800 €
- Financing required: 537.200 €
The proceeds from the house sale should not all be tied up
The couple had liquid funds from the sale of their previous property in Germany. Even so, not all of their assets were to flow into the purchase. Part of the capital was to remain available for retirement and unforeseen expenses. At the same time, it was important to complete all modernisation before moving in.
68% loan-to-value: equity and loan combined in balance
For a permanent change of residence to Madeira, holistic financing planning is often more sensible than looking at the purchase price alone. Only by including additional costs and modernisation does the actual capital requirement become clear.
The financing corresponded to around 68 % of the purchase price. This allowed equity and outside financing to be combined in a balanced way without restricting financial flexibility.
Kitchen, bathrooms, cooling and lighting paid from own funds
All planned measures were already taken into account in the overall plan — covered from equity, not by the bank loan:
- installation of a modern open kitchen
- renewal of the bathrooms
- energy-efficient air conditioning of the living areas
- new shading systems on the terraces
- custom-made fitted wardrobes
- modernisation of the network and internet infrastructure
- intelligent lighting control
All work was carried out immediately after the purchase.
Moved in a few weeks later, reserves still in place
The detached house could be occupied fully modernised a few weeks later. The buyers began their new chapter on Madeira without a further building phase and at the same time kept sufficient financial reserves for the future.
Targeted works turn a good house into one of your own
For a permanent move to Madeira, it pays to consider the property purchase as a whole. When the purchase price, additional costs and modernisation are planned together, reliable financing emerges without later top-up loans or unplanned extra costs.
Frequently asked
Can modernisation be included directly in the financing?
Does financing make sense even though there is enough equity?
Which modernisations are typical for detached houses in Caniço?
Is Caniço suitable as a permanent residence?
Caniço detached house balances quiet living and city access
A detached house in Caniço combines a quiet residential setting with quick access to Funchal. Anyone who plans the total investment realistically and includes all modernisation in the overall plan from the start creates a solid basis for permanent life on Madeira.
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A similar situation in Portugal? Let's talk.
Every financing in Portugal is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.
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