Sotogrande: Financing a high-quality villa for a permanent centre of life
A couple of entrepreneurs from Switzerland planned a complete new start in Spain after selling a mid-sized company. Both wanted to move their centre of life permanently to the Costa del Sol and at the same time create enough room for family visits and occasional business appointments.
At a glance
- Purchase price: 2.980.000 €
- Renovation: 162.400 €
- Financing required: 1.937.000 €
- Equity: 1.563.000 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Exclusive living with peace, privacy and a maritime lifestyle
Sotogrande is one of the most renowned residential addresses in southern Spain. Generous plots, well-kept residential areas, international schools, a marina and several renowned golf courses shape the region. Despite its exclusive character, many German-speaking buyers deliberately choose Sotogrande as a permanent residence – not because of a luxurious lifestyle but because of the exceptional quality of life and the quiet surroundings.
This practical case shows how buying a high-quality villa for owner-occupation can be financed.
Initial situation
A couple of entrepreneurs from Switzerland planned a complete new start in Spain after selling a mid-sized company. Both wanted to move their centre of life permanently to the Costa del Sol and at the same time create enough room for family visits and occasional business appointments.
After a longer period of observing the market they chose a detached villa in an established residential setting in Sotogrande with a generous plot and short distances to the marina.
Financing overview
- Purchase price: 2.980.000 €
- Additional costs: 357.600 €
- Renovation: 162.400 €
- Total investment: 3.500.000 €
- Equity: 1.563.000 €
- Financing required: 1.937.000 €
The challenge
Although sufficient assets were available, only part of them was to be used for the acquisition. A considerable share of the capital was to remain invested over the long term in order to preserve the asset structure and liquidity.
In addition, there was the wish to develop the property further technically and functionally before moving in.
Analysis
The villa was in excellent structural condition. The planned measures therefore focused exclusively on individual adaptations.
Provided for were a fully modernised house control, a new designer kitchen with professional equipment, the redesign of the main bathroom, more efficient air conditioning, the fit-out of a generous work and meeting area and the renewal of the outdoor lighting.
All measures were planned in detail before the purchase contract was concluded and fully included in the total investment.
Financing solution
The financing was set at around 65 % of the purchase price. This kept a considerable part of the assets flexibly available and able to remain invested over the long term.
Alongside the purchase price, all additional costs and the planned modernisation measures were taken into account in joint financing. Additional loans after the acquisition were therefore not required.
Outcome
Once the work was completed, a house was created that fully matched the buyers' personal ideas and at the same time offered optimal conditions for a permanent centre of life.
The financing remained calculable over the long term and left sufficient financial room for further private and entrepreneurial decisions.
What other buyers can learn
In the high-priced segment too, financing should not be aligned exclusively with the purchase price. Individual adaptations, technical modernisation and acquisition costs significantly influence the actual total investment.
An early overall calculation creates transparency and avoids later financing solutions.
Frequently asked questions
Why is Sotogrande attractive for owner-occupiers?
Are high-quality properties often modernised?
Why is financing used despite high assets?
Which properties are especially in demand in Sotogrande?
Conclusion
Sotogrande combines exclusivity with peace and an exceptionally high quality of life. Financing that takes the purchase price, additional costs and all planned modernisation into account from the start creates the basis for a long-term secure and comfortable centre of life in southern Spain.
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To the case report →A similar situation in Spanien? Let's talk.
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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