Practical case Mallorca: Apartment in Porto Cristo – The first property purchase abroad with careful preparation
Both buyers were in their mid-40s and worked in senior positions at an international industrial company. The equity had been built up consistently over many years.
In short
What was this case about?
Both buyers were in their mid-40s and worked in senior positions at an international industrial company. The equity had been built up consistently over many years.
Should a property abroad be fully ready to move into?
Not necessarily. Many buyers adapt their property to their own living style after acquisition. What matters is planning these costs realistically before the purchase.
Why is a liquidity reserve sensible?
Even after a property purchase, unexpected expenses or new life situations can arise. Financial reserves provide additional security.
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.
€1,095,000 price, €766,500 loan, €548,850 equity
- Purchase price: 1.095.000 €
- Financing required: 766.500 €
- Equity: 548.850 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
A decision that was not made overnight
A couple from Austria had thought intensively for several years about buying a property in Spain. After numerous viewings on the mainland and the Balearics, Porto Cristo finally won them over. The natural harbour, the relaxed atmosphere and the good year-round infrastructure fitted perfectly with their wish for a second centre of life.
They decided on a high-quality apartment in the front line to the sea with a generous terrace and a direct view of the harbour.
The first property purchase outside Austria
Both buyers were in their mid-40s and worked in senior positions at an international industrial company. The equity had been built up consistently over many years. At the same time, they wanted to keep sufficient financial reserves in order to remain flexible for future investments.
As this was the first property purchase outside Austria, the entire financing was to be structured particularly transparently and traceably.
€1,315,350 in total, €78,000 for works and fittings
- Purchase price: 1.095.000 €
- Additional costs: 142.350 €
- Renovation and bespoke fit-out: 78.000 €
- Total investment: 1.315.350 €
- Equity: 548.850 €
- Financing required: 766.500 €
The financing share corresponded to around 70 % of the purchase price.
Kitchen, wardrobes, lighting and terrace to their own taste
The apartment was fitted to a high standard but did not fully match the buyers' personal taste. Planned were a new fitted kitchen, high-quality built-in wardrobes, a modern lighting concept as well as the redesign of the terrace.
In addition, the financing was to be structured so that future changes – such as a later move to Mallorca – would remain easily possible.
Capital needed, income and asset planning considered together
Before the contract was signed, the entire capital requirement was determined first. In addition to the purchase price and the additional costs, all planned adjustments to the apartment were calculated in detail.
Income, equity and long-term asset planning were then considered together. It quickly became clear that financing of around 70 % of the purchase price offered a balanced trade-off between the use of equity and financial flexibility.
70% loan, purchase costs and changes from own funds
The financing covered around 70 % of the purchase price.
The additional costs as well as part of the purchase price were paid from own funds. All planned renovation and fit-out measures were also already part of the original financing plan.
As a result, the apartment could be fully adapted to the buyers' wishes immediately after handover.
First longer stays with no financial surprises
Just a few months later, the couple spent their first longer stays in their own apartment in Porto Cristo.
As all investments had been accounted for from the outset, the entire purchase proceeded without financial surprises. At the same time, sufficient reserves remained for future plans.
On a first purchase abroad, list every cost from the start
The first property purchase abroad often differs from a purchase in the home country. This makes complete financing planning all the more important – planning that accounts for all costs and leaves sufficient financial reserves.
Frequently asked
Should a property abroad be fully ready to move into?
Why is a liquidity reserve sensible?
Is financing of around 70 % of the purchase price common?
Porto Cristo apartment: equity and flexibility kept in balance
The purchase of an apartment in Porto Cristo shows that successful property financing involves far more than the purchase price. Anyone who accounts for all investments early, deploys sufficient equity and at the same time preserves financial flexibility creates the best conditions for a relaxed property purchase on Mallorca and a successful start to the new stage of life.
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A similar situation in Spain? Let's talk.
Every financing in Spanien 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