Years of comparing places in the Canaries: €1,078,000 for Costa Teguise
The purchase was meant to fit the buyers' existing property and securities assets and to remain sound over the long term. The buyer was the managing partner of a family-run production company; his wife worked as an architect. Both had an above-average income and broadly diversified assets from property and securities.
Why did the buyers of the villa in Costa Teguise keep their assets and liquidity in place?
The buyers did not want to reallocate their existing assets unnecessarily and wanted to preserve sufficient liquidity for future decisions. A review of the asset structure showed that a balanced use of equity was economically more sensible than full payment from liquid funds. The financing was around 70 % of the purchase price, so the investments stayed in place.
Key figures: Villa €1,540,000, loan €1,078,000, equity €827,200
- Purchase price: 1,540,000 €
- Financing required: 1,078,000 €
- Equity: 827,200 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Not every decision for a property is a spontaneous affair of the heart
A couple from the Stuttgart region had visited various places on the Canary Islands over several years. While they initially preferred Tenerife, Lanzarote ultimately won them over with its distinctive landscape, calmer feel of life and high living quality.
Costa Teguise quickly became the favourite. The well-kept residential areas, the proximity to the sea and the good infrastructure made the place ideal for the planned permanent residence.
Entrepreneur and architect deliberately not paying all cash: The buyer was the managing partner of a family-run production company; his wife worked as an architect. Both had an above-average income and broadly diversified assets from property and securities.
Despite sufficient liquidity, they deliberately did not want to finance the property purchase entirely from own funds.
€1,905,200 total, €165,000 for solar and smart home
The total investment was €1,905,200, of which €165,000 went to photovoltaics, smart home, outdoor area and pool technology. The financing share corresponded to around 70 % of the purchase price.
Purchase price: 1,540,000 €; Additional costs: 200,200 €; Renovation (photovoltaics, smart home, outdoor area and pool technology): 165,000 €; Total investment: 1,905,200 €; Equity: 827,200 €; Financing required: 1,078,000 €.
The financing share corresponded to around 70 % of the purchase price.
Renewing building control, solar system and pool tech: The villa was equipped to a high standard but was to be brought up to date technically. Planned were intelligent building control, a powerful photovoltaic system with battery storage, the modernisation of the pool technology and a complete redesign of the outdoor lighting.
The buyers wanted to complete all work directly after the transfer of ownership so they could then use the house permanently without further building sites.
Wealth reviewed: financing beat paying in cash
Before the purchase, all investments were calculated together with specialist companies and included in the total investment.
In addition, a comprehensive review of the asset structure took place. It quickly became clear that a balanced use of equity was economically more sensible than full payment from liquid funds.
This kept enough reserves for further private and entrepreneurial decisions.
A loan of €1,078,000, the investments stay in place
The financing was set at around 70 % of the purchase price.
The additional costs and a considerable share of equity were covered from own funds.
All modernisation measures were also included in the original overall plan — covered from equity, not by the bank loan. This meant all work could be carried out immediately after handover.
Running costs down, wealth structure almost unchanged: Just a few months later, the villa fully matched the buyers' ideas.
Thanks to the energy modernisation, running costs were reduced while living comfort was significantly increased.
The existing asset structure remained almost unchanged and continued to offer sufficient financial flexibility.
Plenty of equity doesn't mean paying for it all yourself
A high equity ratio does not necessarily mean that a property should be paid for entirely from own funds. A balanced combination of equity and financing is often the economically more sensible solution.
Villa in Costa Teguise: renovation while keeping flexibility: Buying a villa in Costa Teguise shows that well-considered property financing goes far beyond the purchase price itself. Anyone who sensibly combines modernisation, equity and long-term asset planning creates the basis for a permanent home on Lanzarote while preserving their financial flexibility.
Similar cases by region and price band: Cases with a comparable region and price band — for context, not a promise of the same outcome.
House in Puerto Naos — case report: Anonymised case from La Palma: house in Puerto Naos. Mortgage financing for non-residents.
Frequently asked questions
Is Costa Teguise suitable for permanent living?
Many buyers deliberately choose Costa Teguise as a permanent home because of its good infrastructure, quiet residential settings and high quality of life.
Which technical work was planned for the villa in Costa Teguise?
Planned were intelligent building control, a powerful photovoltaic system with battery storage, the modernisation of the pool technology and a complete redesign of the outdoor lighting. The buyers wanted to complete all work directly after the transfer of ownership.
Why did the buyers choose Costa Teguise on Lanzarote rather than Tenerife?
They initially preferred Tenerife, but Lanzarote ultimately won them over with its distinctive landscape, calmer feel of life and high living quality. The well-kept residential areas, the proximity to the sea and the good infrastructure made Costa Teguise ideal for the planned permanent residence.
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
Related pages
Overview of case reports from the Canary Islands
Market analysis, loan-to-value and conditions for the region.
Practical case Mallorca: Charming finca near Santanyí
Modernisation planned in from the start
Practical case Mallorca: Family house in Alcúdia
When the sale of the previous property is part of the financing
Practical case Mallorca: Finca with guesthouse in Deià
Two generations realise their dream together
House in Puerto del Carmen — case report
Anonymised case from Lanzarote: house in Puerto del Carmen. Mortgage financing for non-residents.
Detached house in Corralejo — case report
Anonymised case from Fuerteventura: detached house in Corralejo. Mortgage financing for non-residents.
Bungalow in Caleta de Fuste — case report
Anonymised case from Fuerteventura: bungalow in Caleta de Fuste. Mortgage financing for non-residents.
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.