Costa Blanca property: pension notice as proof, €262,800 for a terraced house in Torrevieja
A couple from Hamburg, both employed in the public service for many years, were planning early retirement. After numerous stays on the Costa Blanca, the decision fell on Torrevieja, as family and friends already knew the place and the connection to Alicante airport makes short trips to Germany easier.
Why choose a terraced house in Torrevieja with a lower financing in retirement?
The buyers had sufficient equity and deliberately chose lower financing, around 60 % of the purchase price, to keep the monthly burden low in retirement and to keep a considerable part of their equity as a reserve. Torrevieja also offers excellent infrastructure, medical care, shopping and good access to Alicante airport.
Key figures: €438,000 price, €262,800 loan, €29,400 modernisation
- Purchase price: 438,000 €
- Renovation: 29,400 €
- Financing required: 262,800 €
- Equity: 257,200 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Living year-round in one of the most versatile coastal towns on the Costa Blanca
Torrevieja has developed in recent years into a popular place to live for people who want to move their centre of life permanently to Spain. Alongside the well-known beaches, the town and its surroundings offer excellent infrastructure, modern healthcare, international shopping and a lively German-speaking community.
For many owner-occupiers, therefore, it is not the holiday but a permanent home that is central.
Early retirement, terraced house near family and airport
They were looking for a modern terraced house in a quiet residential area with its own terrace, a small garden and enough room for regular visits from children and grandchildren.
After an intensive search they found a well-kept property in an established urbanisation with short distances to shops and the beaches.
€520,000 in total, just under half from own funds: Purchase price: 438,000 €; Additional costs: 52,600 €; Renovation: 29,400 €; Total investment: 520,000 €; Equity: 257,200 €; Financing required: 262,800 €.
Not putting the whole flat-sale proceeds into the house
The equity came mainly from the sale of a debt-free apartment in Germany. Even so, the buyers did not want to invest all of the sale proceeds but to keep financial reserves for retirement.
In addition, the house was to be modernised and adapted to their own needs before moving in.
Ready to use; kitchen, bath, floors and pergola planned: The property was well-kept and immediately usable, yet there was a need for optimisation in several areas. Provided for were a new fitted kitchen, the modernisation of the main bathroom, more efficient air conditioning, new floor coverings on the upper floor and the redesign of the terrace with a high-quality pergola as a year-round usable seating area.
As all measures were planned before the purchase contract was concluded, they could be fully included in the overall calculation.
60 % financed, most of the reserve stays untouched
The financing was set at around 60 % of the purchase price. This kept a considerable part of the equity as a reserve, while at the same time a comparatively low outside financing was sufficient.
Alongside the purchase price, all additional costs and the planned modernisation measures were also included in the overall plan from the outset — covered from equity, not by the bank loan. Additional financing after the acquisition was therefore not required.
A home for retirement, instalment fits the pension: Once the work was completed, a comfortable home was created that is optimally tuned to the needs of the upcoming retirement. The buyers were able to prepare their move as planned and continue to have sufficient financial reserves for travel and unforeseen expenses.
The financing remained manageable and suited the long-term income situation in retirement.
Keeping reserves often beats spending everything
For the transition into retirement in particular, balanced financing is often more sensible than the full use of existing assets. Financial reserves create additional security and allow more flexibility in everyday life.
Anyone who takes modernisation measures into account already at the purchase also avoids later organisational and financial burdens.
Terraced house in Torrevieja: financial certainty for retirement: Torrevieja offers ideal conditions for people who want to spend their retirement or a new chapter of life on the Costa Blanca. An overall plan that budgets the purchase price, additional costs and all planned modernisation together from the start — the bank loan for the purchase price, costs and modernisation from equity — ensures planning certainty and creates the basis for a relaxed new start in Spain.
Similar cases by region and price band: Cases with a comparable region and price band — for context, not a promise of the same outcome.
Penthouse on the Orihuela Costa — case report: Anonymised case report: New-build with a timeline: €462,800 loan on the Orihuela Costa. Mortgage financing for non-residents.
Frequently asked questions
Can terrace or outdoor-area modernisation be co-financed?
As a rule the Spanish bank does not co-finance modernisation — it belongs in the overall plan: equity or raising capital against German property.
Which properties are especially in demand among owner-occupiers in Torrevieja?
Alongside apartments, terraced houses, detached houses and modern villas in quiet residential areas are among the most popular properties for permanent owner-occupation.
Where did the equity for the terraced house in Torrevieja come from?
The equity came mainly from the sale of a debt-free apartment in Germany. The buyers did not want to invest all of the sale proceeds but to keep financial reserves for retirement.
A similar situation in Spain? Let's talk.
Every financing in Spain is an individual case. In a free initial consultation we will tell you honestly what is feasible and which bank fits.
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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Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.