Case report · Tenerife

Practical case Tenerife: Villa in Puerto de la Cruz – A generational change planned early

The buyer was a partner in an engineering firm; his wife ran a tax consultancy. Both were planning to reduce their professional activity gradually over the coming years.

In short

What was this case about?

The buyer was a partner in an engineering firm; his wife ran a tax consultancy. Both were planning to reduce their professional activity gradually over the coming years.

Why were modernisations carried out immediately?

Because larger measures are usually easier to realise right after purchase than during later use.

Does financing make sense despite high equity?

Many buyers deliberately choose to keep part of their assets invested while preserving sufficient liquidity.

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.

Key figures

€1,980,000 purchase price, €1,386,000 loan

  • Purchase price: 1.980.000 €
  • Financing required: 1.386.000 €
  • Equity: 1.016.400 €

Anonymised case figure · not a binding statement for other projects · §34i GewO

Typical, anonymised case. Names, places and individual financing figures have been adjusted to protect privacy. The process reflects a typical advisory situation for non-resident financing in Spanien.

A home meant to grow with the family's plans

A couple from Freiburg had known Tenerife as a holiday destination for many years. While the south of the island was the focus at first, they were later captivated by Puerto de la Cruz with its botanical gardens, established old town and pleasant year-round climate in the north.

When they viewed a generous villa with a sea view in a quiet residential setting, it quickly became clear that this property was not intended only for retirement. Their adult children, and later grandchildren, were also to spend time there regularly.

Securities portfolio stays, the villa gets financed

The buyer was a partner in an engineering firm; his wife ran a tax consultancy. Both were planning to reduce their professional activity gradually over the coming years.

Alongside a debt-free house in Germany, they had liquid funds and a broadly diversified securities portfolio. Even so, they did not want to invest all of their assets in the property.

€2,402,400 in total, €1,016,400 from own funds

  • Purchase price: 1.980.000 €
  • Additional costs: 257.400 €
  • Renovation (energy efficiency, pool technology, kitchen and outdoor area): 165.000 €
  • Total investment: 2.402.400 €
  • Equity: 1.016.400 €
  • Financing required: 1.386.000 €

The financing share corresponded to around 70 % of the purchase price.

Energy upgrades for year-round use of the villa

The villa was built to a high standard but was to be modernised for energy efficiency and better prepared for year-round use.

In addition, the buyers wanted a larger kitchen, more efficient pool technology, a photovoltaic system with battery storage and a covered terrace for the winter months.

Because the property was to be used within the family over the long term, sustainable planning was central.

Retirement and family succession built into the plan

Even before the contract was concluded, all modernisation measures were calculated by specialist companies and fully included in the total investment.

At the same time, the financing was not planned solely on the basis of the current income situation. Rather, considerations of later retirement and long-term succession of assets within the family were already included in the planning.

This created a financing that remains comfortably affordable even many years later.

Own funds for the fees, bank loan for the price

The financing was set at around 70 % of the purchase price.

The additional costs and a considerable share of equity were paid immediately from own funds.

All modernisation measures were already part of the original overall plan — covered from equity, not by the bank loan. After handover, all work could be implemented without delay.

Room for several generations, lower running costs

Today the family has a modernised villa that is used year-round and offers enough room for several generations.

Thanks to the early energy optimisation, ongoing running costs were also reduced.

Plan for future changes within the family

A home is often acquired for several decades. It is therefore worth considering not only today's needs but also future changes within the family early in the financing planning.

FAQ

Frequently asked

Why were modernisations carried out immediately?
Because larger measures are usually easier to realise right after purchase than during later use.
Does financing make sense despite high equity?
Many buyers deliberately choose to keep part of their assets invested while preserving sufficient liquidity.
What role does energy efficiency play for existing properties?
It is becoming increasingly important, as modern technology improves living comfort and can reduce running costs in the long term.

Puerto de la Cruz villa designed for several generations

Buying a villa in Puerto de la Cruz shows that property financing goes far beyond the purchase price itself. Anyone who combines long-term family planning, modernisation and asset structure creates the basis for a home that can meet the needs of several generations in the future too.

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Anonymised 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

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