Practical case Gran Canaria: Apartment in Playa del Inglés – The step from holiday guest to permanent resident
The buyer was a civil engineer; his wife worked as a senior teacher. Both had regular income, a well-built securities portfolio and a debt-free apartment in Germany.
At a glance
- Purchase price: 695.000 €
- Financing required: 486.500 €
- Equity: 380.850 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Years of holidays turned into a new chapter of life
A couple from Leipzig had spent several weeks on Gran Canaria regularly for over 15 years. While hotels were preferred at first, over the years the wish for an apartment of their own grew. What was decisive, however, was that the property should not only be suitable for holiday stays. After entering retirement, both wanted to live permanently on the island.
After an intensive search they found a generous apartment in Playa del Inglés with a large south-facing terrace, a lift and a short distance to the beach promenade.
Initial situation
The buyer was a civil engineer; his wife worked as a senior teacher. Both had regular income, a well-built securities portfolio and a debt-free apartment in Germany.
The existing equity was to be used deliberately without using up all financial reserves.
Financing overview
- Purchase price: 695.000 €
- Additional costs: 90.350 €
- Renovation (bathrooms, kitchen, air conditioning and shading): 82.000 €
- Total investment: 867.350 €
- Equity: 380.850 €
- Financing required: 486.500 €
The financing share corresponded to around 70 % of the purchase price.
The challenge
The apartment had an excellent location but was no longer technically up to date. Planned were a complete renewal of the kitchen, the modernisation of both bathrooms, energy-efficient air conditioning and weatherproof shading of the terrace.
All work was to be completed before the first longer stay.
Analysis
Before the purchase contract was concluded, all modernisation measures were calculated with concrete quotes.
In addition, a long-term financing plan was drawn up that already took the later pension situation into account. The buyers deliberately wanted to choose their monthly burden so that it would remain comfortably affordable after working life too.
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 own funds.
The full modernisation costs were already included in the original financing. This meant the apartment could be fully modernised immediately after handover.
Outcome
Once all work was completed, a modern apartment was created that already serves the buyers as a home for several months a year.
No further major investment is required for the later permanent move. At the same time, sufficient liquidity remained for unforeseen expenses.
What other buyers can learn
An apartment in a good location does not have to be perfectly equipped. It is often more sensible to acquire a property with potential and adapt it to one's own needs from the start. The prerequisite, however, is that all modernisation costs are taken into account early.
Frequently asked questions
Is Playa del Inglés also suitable as a permanent residence?
Why were the modernisation costs planned at the time of purchase?
Why was not all of the equity used?
Conclusion
Buying an apartment in Playa del Inglés shows that well-considered financing involves far more than acquiring a property. Anyone who combines purchase price, modernisation, equity and long-term life planning creates the basis for a relaxed transition from holiday guest to permanent resident of Gran Canaria.
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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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