Algarve property: Townhouse in Loulé – Moving in three years, buying today
A couple from Baden-Württemberg – she a corporate lawyer, he a graduate computer scientist – planned a full move to Portugal within the coming three years. Both wanted to continue their professional work partly remotely at first and then spend their retirement on the Algarve.
What speaks for a townhouse in Loulé, and what counts when financing it?
Loulé offers a lively old town, excellent infrastructure, year-round town life and short distances to Faro, Vilamoura and the coast. For the financing, what matters is a realistic valuation of the property and traceable planning of the intended renovations. Here the loan was around 64 % of the purchase price, and the renovation was covered from equity.
Key figures: 664,000 € price, 46,000 € works, 423,000 € loan
- Purchase price: 664,000 €
- Renovation: 46,000 €
- Financing required: 423,000 €
- Equity: 327,000 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Authentic Portugal with short distances to the coast
Loulé is one of the most tradition-rich towns on the Algarve. The historic old town, the well-known weekly market and the lively town centre throughout the year make it especially interesting for people who want to live permanently in Portugal. At the same time, Vilamoura, Faro and the beaches of the Algarve are within easy reach.
This practical case shows how buying a townhouse for owner-occupation can be implemented with long-term sustainable financing.
A townhouse in old Loulé, the move set for three years on
After a longer search, they chose a renovated townhouse in a quiet side street near the historic old town of Loulé. Decisive factors were the walking-distance access to the town centre, the authentic surroundings and the good transport links.
750,000 € total, 327,000 € of it from own funds: Purchase price: 664,000 €; Additional costs: 40,000 €; Renovation: 46,000 €; Total investment: 750,000 €; Equity: 327,000 €; Financing required: 423,000 €.
Modernising without losing the character of the house: The equity came from the sale of an apartment as well as a portfolio built up over the long term. At the same time, the buyers wanted to keep sufficient liquidity for later retirement and possible family obligations.
Before moving in, the townhouse was to be functionally modernised without losing its original character.
46,000 € for kitchen, bath, windows and a study
The property was in good structural condition. The planned measures focused on living comfort and energy efficiency.
Planned were a new kitchen with made-to-measure built-in elements, the modernisation of one bathroom, the replacement of older windows with more energy-efficient versions at the rear of the house, modern air conditioning with individual room control and the fit-out of a quiet study with integrated network cabling.
As all measures were planned in detail before the purchase contract was concluded, they could be fully incorporated into the total investment.
About 64 % on loan, liquidity for the family retained
The financing was set at around 64 % of the purchase price. This kept a considerable part of the equity available as a financial reserve while at the same time creating a long-term balanced financing structure.
Alongside the purchase price, all acquisition costs and all planned renovation measures were included in the overall plan from the outset — covered from equity, not by the bank loan. A later follow-up financing was therefore not required.
Portuguese charm with present-day comfort: Once the work was complete, a modern home was created that combines the charm of a Portuguese townhouse with contemporary living comfort.
The buyers were able to prepare their move step by step while at the same time still having sufficient financial reserves.
Loulé instead of a sea view: good infrastructure, early costing
Not every permanent residence on the Algarve has to be right by the sea. Towns such as Loulé offer excellent infrastructure, authentic Portuguese life and good accessibility to the entire region.
Anyone who calculates the purchase price, acquisition costs and renovation together at an early stage creates a solid basis for a fresh start in Portugal.
Townhouse in Loulé: full cost planning secures a home on the Algarve: Loulé combines Portuguese tradition with a modern quality of life and excellent infrastructure. An overall plan that budgets the purchase price, acquisition costs and all planned renovation together already at the property purchase — the bank loan for the purchase price, costs and renovation from equity — creates the basis for a long-term secure and comfortable centre of life on the Algarve.
Similar cases by region and price band: Cases with a comparable region and price band — for context, not a promise of the same outcome.
Townhouse in Tavira — case report: Anonymised case report: Townhouse in Tavira – Winding down work without losing the bank. Mortgage financing for non-residents.
Frequently asked questions
Why is existing equity not used in full?
Many buyers want to preserve financial reserves and maintain their asset structure over the long term.
Which properties are especially in demand in Loulé?
Townhouses, modern apartments, single-family houses and villas in quiet residential locations are among the preferred properties for permanent owner-occupation.
Was follow-up financing needed for the renovation of the townhouse in Loulé?
No. Alongside the purchase price, all acquisition costs and all planned renovation measures were included in the overall plan from the outset, covered from equity and not by the bank loan. A later follow-up financing was therefore not required.
A similar situation in Portugal? Let's talk.
Every financing in Portugal 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.