Practical case Mallorca: Penthouse in Portocolom – Portfolio lending instead of selling securities
Both buyers were in their late 50s and had high incomes as well as a portfolio built up over many years with broadly diversified investments. Performance had developed very positively, which is why they wanted to avoid larger sales.
In short
What was this case about?
Both buyers were in their late 50s and had high incomes as well as a portfolio built up over many years with broadly diversified investments. Performance had developed very positively, which is why they wanted to avoid larger sales.
Should a securities portfolio be sold entirely for a property purchase?
That depends on the personal asset strategy. In many cases it can make sense to leave long-term investments in place as far as possible.
Why were the renovation costs taken into account directly?
So that all work could be carried out immediately after the transfer of ownership, without creating an additional financing requirement later.
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.
€1.58m penthouse, €1.04m loan, 66 % of the price financed
- Purchase price: 1.580.000 €
- Financing required: 1.042.000 €
- Equity: 838.400 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Property for sale in Portocolom: why good asset planning is sometimes more important than as much equity as possible
A couple from Munich had spent several weeks a year on the east coast of Mallorca for many years. Portocolom in particular had won them over – the natural harbour, the promenade and the relaxed atmosphere differed noticeably from the island's larger resorts.
When a modern penthouse with a large roof terrace and a view of the harbour came up for sale, they wanted to act quickly. Although sufficient wealth was available, the securities portfolio was to remain as untouched as possible.
The portfolio has done well and should stay invested
Both buyers were in their late 50s and had high incomes as well as a portfolio built up over many years with broadly diversified investments. Performance had developed very positively, which is why they wanted to avoid larger sales.
Instead, the available equity was to be deployed in a targeted way, without unnecessarily liquidating long-term investments.
€1.88m total, €95,000 for kitchen, cooling and terrace
- Purchase price: 1.580.000 €
- Additional costs: 205.400 €
- Renovation (kitchen, air conditioning and terrace design): 95.000 €
- Total investment: 1.880.400 €
- Equity: 838.400 €
- Financing required: 1.042.000 €
The financing share corresponded to around 66 % of the purchase price.
Buying without selling any securities
The buyers wanted to avoid selling larger parts of their securities assets. At the same time, the financing was to remain economically sensible and preserve sufficient liquidity for future investments.
The planned renovations were also to be carried out immediately after handover.
Not the size of the assets mattered, but how they were used
Together, the entire asset structure was examined first. It quickly became clear that the size of the wealth was not decisive, but rather its sensible deployment.
Through the targeted use of equity, the acquisition costs could be covered entirely while sufficient reserves were retained. The planned renovation measures were fully calculated before the contract was signed.
66 % loan, fees and works covered from own funds
The financing was built on around 66 % of the purchase price.
The available equity covered all additional costs as well as a considerable part of the purchase price. The renovation costs were integrated into the total investment from the outset.
As a result, no subsequent financing solutions had to be sought, and the securities assets could largely remain invested.
New roof terrace and kitchen, wealth plan unchanged
After the renovation was completed, the penthouse fully matched the buyers' expectations. The generous roof terrace was redesigned, the kitchen modernised and the building services brought up to date.
At the same time, the long-term asset plan remained almost unchanged.
Long-term investments need not be cashed in
Many property buyers have considerable assets that are invested for the long term. It is not always sensible to liquidate these entirely. A balanced combination of equity and financing is often the more sustainable solution economically.
Frequently asked
Should a securities portfolio be sold entirely for a property purchase?
Why were the renovation costs taken into account directly?
Does an equity ratio of over 30 % make sense?
Penthouse in Portocolom: equity used wisely, investments preserved
The purchase of a penthouse in Portocolom shows that property financing should always be part of overall asset planning. Anyone who deploys equity deliberately, preserves long-term investments and realistically accounts for all investments from the outset creates the basis for durable financing and a relaxed start to life on Mallorca.
More cases on this theme
Tavira: Financing a townhouse with a courtyard for a permanent centre of life
Historic townhouses often have a special charm but require careful planning of the renovation.
Faro: Financing an apartment in the city centre for a permanent centre of life
Anyone who wants to live permanently in Portugal does not necessarily have to buy a property right on the beach.
Portimão: apartment on the Arade waterfront, permanent home
Portimão offers far more than a well-known seaside resort.
A similar situation in Spain? Let's talk.
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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