Loulé: Financing a townhouse near the historic old town for a permanent centre of life
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.
At a glance
- 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.
Initial situation
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.
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.
Financing overview
- Purchase price: 664.000 €
- Additional costs: 40.000 €
- Renovation: 46.000 €
- Total investment: 750.000 €
- Equity: 327.000 €
- Financing required: 423.000 €
The challenge
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.
Analysis
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.
Financing solution
The financing was set at around 65 % 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 financed together. A later follow-up financing was therefore not required.
Outcome
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.
What other buyers can learn
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.
Frequently asked questions
Why is Loulé interesting for owner-occupiers?
Can historic townhouses be financed sensibly?
Why is existing equity not used in full?
Which properties are especially in demand in Loulé?
Conclusion
Loulé combines Portuguese tradition with a modern quality of life and excellent infrastructure. Financing that takes the purchase price, acquisition costs and all planned renovation into account already at the property purchase creates the basis for a long-term secure and comfortable centre of life on the Algarve.
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To the case report →A similar situation in Portugal? Let's talk.
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