Benidorm: Financing a modern apartment with a sea view for a permanent centre of life
A married couple from southern Germany, both in senior positions at a mid-sized company for many years, planned a gradual move to Spain. The final working years were to be spent mostly from home before retirement was then moved entirely to the Costa Blanca.
At a glance
- Purchase price: 645.000 €
- Renovation: 28.600 €
- Financing required: 418.500 €
- Equity: 332.500 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Between city life, the beach and good infrastructure
Benidorm is often associated with holidays and high-rise buildings. At the same time, the city has long since established itself as an attractive place to live for people who want to move their centre of life to the Costa Blanca. The combination of year-round infrastructure, medical care, shopping and short distances makes Benidorm interesting for German-speaking owner-occupiers too.
This practical case is about buying a modern apartment as a future main residence.
Initial situation
A married couple from southern Germany, both in senior positions at a mid-sized company for many years, planned a gradual move to Spain. The final working years were to be spent mostly from home before retirement was then moved entirely to the Costa Blanca.
They were looking for a high-quality apartment with a generous terrace, a sea view and good access to shops and the Benidorm promenade. A lift, an underground garage and a well-kept residential complex were also important.
After a longer search, the decision fell on a modern apartment in an established residential area.
Financing overview
- Purchase price: 645.000 €
- Additional costs: 77.400 €
- Renovation: 28.600 €
- Total investment: 751.000 €
- Equity: 332.500 €
- Financing required: 418.500 €
The challenge
Although sufficient equity was available, part of the assets was to remain deliberately invested and not be used entirely for the purchase. At the same time, the planned modernisation was to be implemented immediately after handover, without having to take out later top-up financing.
A further aspect was the income situation during the transition phase between active working life and retirement. The financing therefore had to fit both current and future life planning.
Analysis
The property was in a sought-after residential area of Benidorm with stable demand and good infrastructure. The building was technically in very good condition, so the planned measures focused exclusively on individual wishes.
Provided for were, among other things, a new fitted kitchen, the modernisation of both bathrooms, more efficient air conditioning and the fit-out of a comfortable home-office area.
As all work was defined at the acquisition, it was included in the overall financing from the start.
Financing solution
The financing share was set at around 65 % of the purchase price. This kept a considerable part of the existing assets available, while at the same time achieving a solid equity ratio.
Alongside the purchase price, the financing also covered the planned modernisation measures and the required capital for the acquisition overall. This meant the property could be occupied permanently immediately after the work was completed.
Outcome
Once the renovation was complete, a modern residence was created that meets the requirements both of the final working years and of the long-term plans for retirement.
The financing remained in a balanced ratio between the use of equity and outside financing. At the same time, all intended modernisation could be carried out without later top-up financing.
What other buyers can learn
Anyone who wants to use a home in Benidorm permanently should not focus solely on the purchase price. Individual adaptations to one's own living style often cause additional costs that should be planned in early.
Financing that takes the purchase price, additional costs and planned modernisation into account together creates planning certainty from the start and avoids later financial surprises.
Frequently asked questions
Is Benidorm also suitable for permanent living?
Can modernisation costs be co-financed directly?
Is a high use of equity always sensible?
Which properties are especially in demand among owner-occupiers in Benidorm?
Conclusion
Benidorm offers far more than a classic holiday location. For many German-speaking buyers, the city is developing into a permanent centre of life. Carefully structured financing that takes all planned investments into account already at the acquisition creates the basis for a relaxed start in the new home 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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