Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Case report · Costa Blanca

Practical case Costa Blanca: New-build villa in Finestrat – Buying early and making sensible use of the construction phase

The buyer was the managing director of a family business operating Europe-wide in packaging technology. His wife worked as a self-employed interior designer.

Key figures

At a glance

  • Purchase price: 1.460.000 €
  • Financing required: 1.022.000 €
  • Equity: 802.800 €

Anonymised case figure · not a binding statement for other projects · §34i GewO

Typical, anonymised case. Names, places and individual financing figures have been adjusted to protect privacy. The process reflects a typical advisory situation for non-resident financing in Spanien.

Some decisions begin long before the handover of keys

A couple from the Düsseldorf area were looking on the Costa Blanca for a modern home that was to serve permanently as a centre of life. While several existing properties made the shortlist, a high-quality new-build project in Finestrat ultimately won them over.

The location between Benidorm and the mountains offered exactly the combination of peace, modern infrastructure and short distances to the sea that both had imagined.

As the villa was still under construction, numerous equipment details could be individually specified.

Initial situation

The buyer was the managing director of a family business operating Europe-wide in packaging technology. His wife worked as a self-employed interior designer.

Both had regular incomes and well-built assets. At the same time, they wanted to preserve sufficient liquidity for further investments and private projects.

Financing overview

  • Purchase price: 1.460.000 €
  • Additional costs: 189.800 €
  • Special features during the construction phase: 175.000 €
  • Total investment: 1.824.800 €
  • Equity: 802.800 €
  • Financing required: 1.022.000 €

The financing share corresponded to around 70 % of the purchase price.

The challenge

The villa was to be extensively individualised already during the construction phase.

Planned were a larger pool, a high-quality outdoor kitchen, a photovoltaic system with battery storage, intelligent building control and a complete designer kitchen.

As many of these decisions had to be made already during the construction period, complete cost planning was essential.

Analysis

First the developer's payment schedule was examined and coordinated with the planned special features.

All additional costs were then fully included in the total investment. This made it possible to determine precisely, even before the contract was concluded, what use of equity would be required.

The buyers deliberately chose not to liquidate their portfolio and instead keep sufficient financial reserves.

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 special features were also already fully integrated into the original financing planning. This meant no unplanned financing gaps arose during the construction phase.

Outcome

On completion, the villa fully matched the buyers' ideas from the start.

Subsequent conversions could be dispensed with, as all wishes had already been implemented during the construction phase.

At the same time, enough liquidity remained for future investments and private plans.

What other buyers can learn

With new-build projects, additional costs often arise from individual equipment wishes. Anyone who fully takes these into account before the contract is concluded creates planning certainty and avoids later surprises.

FAQ

Frequently asked questions

Why is buying already during the construction phase worthwhile?
Buyers can often influence the equipment, materials and technical details and thus optimally adapt the property to their needs.
Why were all special features planned in directly?
So that all costs are taken into account from the start and no later top-up financing is required.
Why was not all of the equity used?
The buyers deliberately wanted to keep their asset structure balanced and remain financially flexible after the purchase too.

Conclusion

Buying a new-build villa in Finestrat shows that good financing begins well before completion. Anyone who combines the construction phase, special features, equity and long-term asset planning creates the basis for a permanent home on the Costa Blanca that matches their own ideas from day one.

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Anonymised 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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