Case report · Costa de Valencia

Castellón de la Plana: Financing a townhouse for a permanent centre of life

An architect from Baden-Württemberg and his wife, a teacher, were planning to move to Spain within the coming three years. Both wanted to continue their professional activity partly at first and then move permanently into retirement.

Key figures

At a glance

  • Purchase price: 472.000 €
  • Renovation: 31.400 €
  • Financing required: 306.800 €
  • Equity: 253.200 €

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.

Relaxed living between the Mediterranean and nature

Castellón de la Plana is one of the cities in Spain that is still regarded as an insider tip among international buyers. The provincial capital combines good infrastructure with comparatively moderate property prices, short distances to the coast and a high recreational value. For German-speaking buyers who want to move their centre of life permanently to Spain, Castellón de la Plana offers an interesting alternative to the better-known coastal regions.

This practical case shows how acquiring a townhouse for owner-occupation can be implemented with durable financing.

Initial situation

An architect from Baden-Württemberg and his wife, a teacher, were planning to move to Spain within the coming three years. Both wanted to continue their professional activity partly at first and then move permanently into retirement.

They were looking for a townhouse with a patio, several bedrooms and enough room for two work areas. After a longer search they chose a well-kept property in an established residential district of Castellón de la Plana.

Financing overview

  • Purchase price: 472.000 €
  • Additional costs: 56.600 €
  • Renovation: 31.400 €
  • Total investment: 560.000 €
  • Equity: 253.200 €
  • Financing required: 306.800 €

The challenge

The equity came from long-term savings and the sale of an apartment. At the same time, the buyers deliberately wanted to keep financial reserves for later retirement.

Before moving in, the townhouse was to be modernised technically and adapted to the requirements of permanent living.

Analysis

The property was in good structural condition. The planned investments focused on living comfort and energy efficiency.

Provided for were a new kitchen, the modernisation of a bathroom, the renewal of the electrical sub-distribution, the replacement of several windows with more thermally efficient models and the fit-out of a quiet home office with custom-made shelving systems.

As all measures were planned in detail before the purchase contract was concluded, they could be fully included in the total investment.

Financing solution

The financing was set at around 65 % of the purchase price. This kept part of the equity as a financial reserve, while at the same time achieving a balanced monthly burden.

Alongside the purchase price, all acquisition costs and all planned modernisation were taken into account in joint financing. Additional financing steps after the acquisition were therefore not required.

Outcome

Once the work was completed, a modern townhouse was created that offers the buyers optimal living conditions both during their remaining working years and in later retirement.

The financing remained calculable over the long term and left sufficient room for future personal plans.

What other buyers can learn

Cities like Castellón de la Plana often offer attractive residential locations at a price level that is barely found in other coastal regions any more. Anyone who takes the purchase price, additional costs and modernisation fully into account already at the acquisition creates a solid financial basis for the new start in Spain.

FAQ

Frequently asked questions

Why is Castellón de la Plana interesting for owner-occupiers?
The city offers good infrastructure, short distances to the coast, a high quality of life and comparatively attractive property prices.
Can technical modernisation be financed together?
Yes. If the measures are planned and transparently calculated before the purchase, they can often be part of the overall financing.
Why is equity deliberately kept?
Many buyers want to preserve their financial flexibility and keep sufficient reserves for retirement or future investments.
Which properties are especially in demand in Castellón de la Plana?
Apartments, townhouses and detached houses in established residential areas are among the preferred properties for permanent owner-occupation.

Conclusion

Castellón de la Plana combines Mediterranean living with a relaxed atmosphere and very good infrastructure. Financing that takes the purchase price, additional costs and all planned modernisation into account together from the start creates a reliable basis for a long-term centre of life on Spain's Mediterranean coast.

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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