Financing a villa in Ponta do Sol – Living on Madeira's sunny side with long-term planning
A couple of doctors from Hamburg were phasing out working life and looking for a villa in Ponta do Sol with generous living areas, several terraces and a low-maintenance garden. The chosen house stood out for its location above the coast, but was to be brought up to date technically and in terms of energy efficiency.
In short
What was this case about?
A couple of doctors from Hamburg were phasing out working life and looking for a villa in Ponta do Sol with generous living areas, several terraces and a low-maintenance garden. The chosen house stood out for its location above the coast, but was to be brought up to date technically and in terms of energy efficiency.
Why is the full purchase price not paid from own funds?
Many buyers want to keep part of their assets liquid or remain broadly invested, rather than tying all their means up in a single property.
Which modernisations are especially usual for villas in Ponta do Sol?
Kitchens, bathrooms, air conditioning, smart-home technology, shading, network technology and low-barrier adaptations are frequently modernised.
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.
€1,480,000 villa, €963,600 loan, €736,400 equity
- Purchase price: 1.480.000 €
- Renovation: 146.000 €
- Financing required: 963.600 €
- Equity: 736.400 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Property for sale in Ponta do Sol: living permanently where Madeira lives up to its name as the island of sunshine
Ponta do Sol is regarded as one of the sunniest places on Madeira. Its mild climate, impressive cliff coastline and quiet atmosphere make the town especially attractive for people who want to move their centre of life permanently to Portugal. Detached villas with a sea view are among the most sought-after homes and are often adapted to individual wishes through targeted modernisation.
Two doctors winding down their working lives step by step
A couple of doctors from Hamburg were phasing out working life and looking for a villa in Ponta do Sol with generous living areas, several terraces and a low-maintenance garden. The chosen house stood out for its location above the coast, but was to be brought up to date technically and in terms of energy efficiency.
€1,700,000 total investment, €146,000 of it modernisation
- Purchase price: 1.480.000 €
- Additional costs: 74.000 €
- Renovation: 146.000 €
- Total investment: 1.700.000 €
- Equity: 736.400 €
- Financing required: 963.600 €
Not all of the family capital should go into the house
The buyers had considerable own funds but did not want to invest all of their assets in the property. At the same time, the house was to meet the requirements for permanent living immediately after purchase. All modernisation was therefore to be part of the overall plan from the start.
65% loan-to-value, liquidity kept back for retirement
For high-quality villas on Madeira, an overall view of the investment is especially important. Alongside the purchase price and acquisition costs, technical modernisation and individual adaptations also affect the actual capital requirement.
With financing of around 65 % of the purchase price, a balanced financing structure emerged. At the same time, enough liquidity remained for retirement and further asset decisions.
Bank loan for the purchase price, works from own funds
The overall plan covered all planned measures — from equity, not the bank loan:
- complete redesign of the kitchen
- modernisation of all bathrooms
- energy-efficient air conditioning
- intelligent building automation
- high-quality shading systems
- custom-made fitted wardrobes
- low-barrier adaptations on the ground floor
- modern network and media technology
All work was completed in full before moving in.
Moving in with no building phase, assets stay well spread
The villa could be occupied without a further building phase. The couple moved their centre of life to Ponta do Sol as planned and enjoyed modern living comfort while keeping a balanced asset structure. No additional financing was required.
Costing a villa's full investment realistically from day one
Anyone acquiring a high-quality villa on Madeira should calculate the entire investment requirement realistically from the start. 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 robust basis emerges for permanent residence.
Frequently asked
Why is the full purchase price not paid from own funds?
Which modernisations are especially usual for villas in Ponta do Sol?
Can energy improvements be part of the financing?
Is Ponta do Sol suitable for permanent living?
Ponta do Sol villa: the whole investment planned in from the start
A villa in Ponta do Sol combines an exceptional location with a high quality of life. Anyone who aligns the overall plan with the entire investment and considers modernisation early on creates the conditions for a relaxed long-term start on Madeira.
More cases on this theme
Practical case Mallorca: Charming finca near Santanyí
Modernisation planned in from the start
Practical case Mallorca: Family house in Alcúdia
When the sale of the previous property is part of the financing
Practical case Mallorca: Finca with guesthouse in Deià
Two generations realise their dream together
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