Financing a townhouse in Câmara de Lobos – Authentic living a short distance from Funchal
A self-employed management consultant from Bavaria was planning a permanent move to Madeira together with his wife. They were looking for a townhouse in Câmara de Lobos with a roof terrace, a small garage and enough room for a separate study.
In short
What was this case about?
A self-employed management consultant from Bavaria was planning a permanent move to Madeira together with his wife. They were looking for a townhouse in Câmara de Lobos with a roof terrace, a small garage and enough room for a separate study.
Why is the modernisation 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.
€520,000 town house, €337,600 loan, €262,400 own funds
- Purchase price: 520.000 €
- Renovation: 54.000 €
- Financing required: 337.600 €
- Equity: 262.400 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Property for sale in Câmara de Lobos: a traditional coastal town with a high quality of living
Câmara de Lobos is one of the oldest and most original places on Madeira. Its picturesque natural harbour, established neighbourhood and immediate proximity to Funchal make the town especially attractive for people who want to live permanently on the island. Townhouses here often offer plenty of living space and character but frequently require modernisation to meet today's living standards.
A town house with roof terrace and room for a study
A self-employed management consultant from Bavaria was planning a permanent move to Madeira together with his wife. They were looking for a townhouse in Câmara de Lobos with a roof terrace, a small garage and enough room for a separate study. The property stood out for its quiet location and Atlantic view, but was to be comprehensively modernised before moving in.
€600,000 total investment including €54,000 of works
- Purchase price: 520.000 €
- Additional costs: 26.000 €
- Renovation: 54.000 €
- Total investment: 600.000 €
- Equity: 262.400 €
- Financing required: 337.600 €
The share portfolio should be left untouched
The buyers had equity from many years of building assets. At the same time, existing securities holdings were to remain as untouched as possible. In addition, the plan was to complete all modernisation immediately after the purchase so the house could be lived in permanently without further construction work.
65% from the bank, the rest and the works from existing capital
With existing properties on Madeira it often turns out that the actual investment requirement goes beyond the purchase price. Kitchens, bathrooms or technical fittings do not always match new owners' expectations. An overall plan that takes the entire investment into account is therefore advisable.
The financing corresponded to around 65 % of the purchase price and provided a balanced ratio between equity and outside financing. At the same time, sufficient financial flexibility was preserved.
Kitchen, bathrooms, home office and cabling before moving in
All planned measures were already taken into account in the overall plan — covered from equity, not by the bank loan:
- new fitted kitchen with an open living concept
- complete modernisation of the bathrooms
- energy-efficient air conditioning
- creation of a separate home-office area
- structured network cabling
- custom-made fitted wardrobes
- modern LED lighting throughout the house
All work was carried out immediately after the purchase.
Move to Câmara de Lobos, part of the capital stays free
The townhouse could be occupied once the modernisation was complete, with no further building phase. The buyers moved their centre of life to Câmara de Lobos as planned and at the same time kept part of their assets as a financial reserve for future projects.
With older town houses, budget the works from the start
With older townhouses in particular, it is worth calculating the actual investment requirement in full. When the purchase price, additional costs and modernisation are budgeted together from the outset — the bank loan for the purchase price, costs and renovation from equity — a reliable basis emerges for a permanent move to Madeira.
Frequently asked
Why is the modernisation included directly in the financing?
Does financing make sense even though there is enough equity?
Which modernisations are especially typical for townhouses in Câmara de Lobos?
Is Câmara de Lobos suitable as a permanent residence?
Câmara de Lobos: renovation funded entirely from equity
A townhouse in Câmara de Lobos combines the charm of a traditional coastal town with the advantages of a modern living environment. 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