Faro: Financing an apartment in the city centre for a permanent centre of life
A couple from Lower Saxony – she a doctor, he an industrial engineer – planned to move their centre of life fully to Portugal within the next four years. Both wanted to continue their professional work partly remotely until then and afterwards enjoy retirement on the Algarve.
At a glance
- Purchase price: 652.000 €
- Renovation: 39.000 €
- Financing required: 408.500 €
- Equity: 321.500 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Urban living in the heart of the Algarve
Faro is far more than just the gateway to the Algarve. The provincial capital combines a historic old town with modern infrastructure, a university location, an international airport and a lively city life throughout the year. Anyone who wants to live permanently in Portugal and values short distances and excellent services will find ideal conditions in Faro.
This practical case shows how buying an apartment in the city centre can be financed over the long term and on a solid basis.
Initial situation
A couple from Lower Saxony – she a doctor, he an industrial engineer – planned to move their centre of life fully to Portugal within the next four years. Both wanted to continue their professional work partly remotely until then and afterwards enjoy retirement on the Algarve.
After an intensive search, they chose a generous apartment in a modern residential building near the old town of Faro. They were particularly convinced by the walking-distance access to shops, restaurants, doctors and the marina.
Financing overview
- Purchase price: 652.000 €
- Additional costs: 39.000 €
- Renovation: 39.000 €
- Total investment: 730.000 €
- Equity: 321.500 €
- Financing required: 408.500 €
The challenge
The buyers had equity from the sale of an apartment as well as long-term securities investments. Nevertheless, part of the assets was to be deliberately kept invested in order to secure financial flexibility for retirement.
Before moving in, the apartment was to be adapted to their personal living ideas.
Analysis
The apartment was in good technical condition. The planned measures focused on comfort and everyday practicality.
Planned were a new high-quality fitted kitchen, the modernisation of the main bathroom, intelligent climate control, made-to-measure fitted wardrobes in the bedroom and the fit-out of a quiet home office with integrated network cabling and additional storage solutions.
As all work was calculated in detail before the contract was signed, it could be fully incorporated into the total investment.
Financing solution
The financing was set at around 65 % of the purchase price. This preserved a considerable part of the equity 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 fully integrated into the financing. Additional loans after the property purchase were therefore not required.
Outcome
Once the work was complete, a modern city apartment was created that offers ideal conditions both for the remaining working years and for later retirement.
The buyers were able to shift their centre of life to Faro step by step while preserving their financial flexibility.
What other buyers can learn
Anyone who wants to live permanently in Portugal does not necessarily have to buy a property right on the beach. Towns such as Faro offer excellent infrastructure, short distances and a lively environment throughout the year.
Complete financing of all planned investments creates planning certainty and considerably eases the later move.
Frequently asked questions
Why is Faro especially interesting for owner-occupiers?
Can home-office solutions be included in the financing?
Why are existing assets not used in full?
Which properties are especially in demand in Faro?
Conclusion
Faro combines urban living with a Portuguese way of life and excellent infrastructure. Financing that takes the purchase price, acquisition costs and all planned renovation into account already at the property acquisition creates a reliable basis for a long-term centre of life on the Algarve.
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Every financing in Portugal is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.
Book a free consultationAnonymised individual case, not a binding statement for other projects · Siegfried Perini, BAFA-notified for the cross-border activity of the owner Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank