Málaga: Financing a city apartment in the historic centre for a permanent centre of life
A professor and a corporate lawyer from Berlin planned to move their centre of life permanently to Málaga after entering retirement. Both appreciated the cultural offering, the good medical care and the ability to organise everyday life without a car.
At a glance
- Purchase price: 768.000 €
- Renovation: 39.800 €
- Financing required: 522.000 €
- Equity: 378.000 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Urban life with Mediterranean flair
Málaga has developed in recent years into one of the most attractive cities in Spain. The combination of a historic old town, modern infrastructure, an international airport, a cultural offering and the immediate proximity to the sea makes the provincial capital a popular place to live for German-speaking owner-occupiers.
This practical case shows how acquiring a high-quality city apartment for permanent owner-occupation can be financed.
Initial situation
A professor and a corporate lawyer from Berlin planned to move their centre of life permanently to Málaga after entering retirement. Both appreciated the cultural offering, the good medical care and the ability to organise everyday life without a car.
After a longer search they chose a generous apartment in a high-quality refurbished building near the old town. The central location, the lift and the walking distance to shops, restaurants and cultural institutions were particularly convincing.
Financing overview
- Purchase price: 768.000 €
- Additional costs: 92.200 €
- Renovation: 39.800 €
- Total investment: 900.000 €
- Equity: 378.000 €
- Financing required: 522.000 €
The challenge
The buyers had a debt-free home in Germany and extensive securities investments. Even so, not all of the available capital was to flow into the Spanish property, in order to remain flexible in retirement too.
In addition, the apartment was to be further improved functionally and energetically before moving in.
Analysis
The apartment was in very good condition. The planned investments mainly served individual use and an optimisation of living comfort.
Planned were a new kitchen with ergonomic planning, the modernisation of a bathroom, the installation of additional soundproof windows to the courtyard, zone-controlled air conditioning and custom-made fitted furniture for a library and work area.
As all measures were defined before the contract was concluded, they could be fully integrated into the financing.
Financing solution
The financing was set at around 68 % of the purchase price. This kept enough equity, while at the same time creating a balanced long-term financing structure.
Alongside the purchase price, all additional costs and all planned modernisation measures were taken into account in joint financing. This meant the apartment could be occupied permanently immediately after the work was completed.
Outcome
Once the modernisation was complete, a comfortable residence was created in the middle of Málaga that enables the buyers a largely car-free life with short distances.
The financing remained calculable over the long term and at the same time left enough financial reserves for travel and personal projects.
What other buyers can learn
City-centre apartments are often convincing for their location and character. At the same time, individual adaptations and technical improvements should be realistically planned in already at the purchase.
Anyone who calculates the purchase price, additional costs and modernisation together creates a solid basis for a permanent move to Spain.
Frequently asked questions
Why is Málaga especially attractive for owner-occupiers?
Can comfort measures also be part of the financing?
Why is financing used despite high assets?
Which properties are especially in demand in Málaga?
Conclusion
Málaga combines urban life, a Mediterranean climate and excellent infrastructure like hardly any other city on the Costa del Sol. Financing that takes the purchase price, additional costs and all planned modernisation into account already at the acquisition creates the basis for a long-term comfortable centre of life in 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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