Practical case Costa Blanca: Detached house in Dénia – Realising the dream of a home with existing rental income
The buyer was head of a mechanical engineering company; his wife worked as a senior physician. In addition, the couple owned two rented apartments in Germany that generated regular rental income.
At a glance
- Purchase price: 1.095.000 €
- Financing required: 766.500 €
- Equity: 588.850 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
The wish for a home by the sea did not arise overnight
A couple from Dortmund had travelled to various regions of Spain over many years. While the Costa del Sol was the focus at first, Dénia ultimately won them over. The combination of a lively old town, a marina, beaches and year-round infrastructure made the place an ideal centre of life.
After several viewing appointments they chose a modern detached house in a quiet residential area with a garden and pool.
Initial situation
The buyer was head of a mechanical engineering company; his wife worked as a senior physician. In addition, the couple owned two rented apartments in Germany that generated regular rental income.
Although sufficient equity was available, not all of their assets were to flow into the purchase. The existing investments were to be deliberately preserved.
Financing overview
- Purchase price: 1.095.000 €
- Additional costs: 142.350 €
- Renovation (photovoltaics, pool technology, kitchen and outdoor areas): 118.000 €
- Total investment: 1.355.350 €
- Equity: 588.850 €
- Financing required: 766.500 €
The financing share corresponded to around 70 % of the purchase price.
The challenge
The house was in excellent condition but was to be modernised technically and adapted to the buyers' personal ideas.
Planned were a new fitted kitchen, an energy-efficient photovoltaic system, the renewal of the pool technology and the redesign of the garden with automatic irrigation.
In addition, the financing was to remain comfortably affordable over the long term even if the professional situation changed later.
Analysis
Before the purchase contract was concluded, all modernisation costs were fully calculated and considered together with the purchase price and additional costs.
In addition, the regular income from the rented apartments was included in the long-term household budget.
The buyers deliberately chose to keep their investments in Germany and continue to use them as part of their asset strategy.
Financing solution
The financing was set at around 70 % of the purchase price.
The additional costs and a considerable share of equity were paid from existing funds.
All modernisation measures were already fully integrated into the original financing planning. This meant all work could be carried out directly after the transfer of ownership.
Outcome
After a few months, the house was fully modernised and ready to move into.
Today the couple mainly uses the property themselves and plans to move their centre of life permanently to Dénia over the coming years. At the same time, the rented apartments in Germany remain part of their long-term asset planning.
What other buyers can learn
Regular rental income can be an important part of personal financial planning. Anyone who does not sell existing properties prematurely but integrates them sensibly into the overall strategy creates additional financial stability.
Frequently asked questions
Do existing rental properties have to be sold before a purchase?
Why were the modernisation costs planned at the time of purchase?
Why was part of the equity kept?
Conclusion
Buying a detached house in Dénia shows that property financing should always be part of comprehensive asset planning. Anyone who sensibly combines purchase price, modernisation, equity and existing investments creates a durable basis for the dream of life on the Costa Blanca.
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Every financing in Spanien 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
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