Financing an apartment in Funchal – Living permanently with an Atlantic view on Madeira
A retired civil engineer from Austria and his wife were looking for a spacious apartment in Funchal with a lift, a large terrace and short distances to shops and medical care. The chosen apartment offered an excellent location above the seafront promenade, but was to be modernised technically and aesthetically before moving in.
At a glance
- Purchase price: 610.000 €
- Renovation: 59.500 €
- Financing required: 426.500 €
- Equity: 273.500 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
The island capital with a high quality of life
Funchal is the economic and cultural heart of Madeira. Its year-round mild climate, excellent infrastructure and scenic setting make the island capital attractive for German-speaking buyers who want to move their centre of life permanently to Portugal. Apartments with a sea view and easy access to the city centre are in especially high demand.
Initial situation
A retired civil engineer from Austria and his wife were looking for a spacious apartment in Funchal with a lift, a large terrace and short distances to shops and medical care. The chosen apartment offered an excellent location above the seafront promenade, but was to be modernised technically and aesthetically before moving in.
Financing overview
- Purchase price: 610.000 €
- Additional costs: 30.500 €
- Renovation: 59.500 €
- Total investment: 700.000 €
- Equity: 273.500 €
- Financing required: 426.500 €
The challenge
The couple had sufficient assets, but deliberately wanted to keep part of their capital as a financial reserve for retirement. At the same time, they wished to complete all modernisation work before the move so they could use the apartment permanently right away.
Analysis
When buying property on Madeira, the purchase price alone should not be the only consideration. Acquisition costs and necessary modernisation also affect the actual capital requirement. Financing that takes every component into account creates a transparent and durable basis.
In this case the financing corresponded to around 70 % of the purchase price. This allowed the available equity to be used in a targeted way without tying up all liquidity.
Financing solution
The financing was structured so that all planned work could be carried out immediately:
- complete renewal of the kitchen
- modernisation of both bathrooms
- energy-efficient air conditioning
- high-quality fitted wardrobes
- electric terrace shading
- modern LED lighting
- network cabling for home office and media technology
Once the work was completed, the apartment was fully ready to move into.
Outcome
The couple moved their centre of life to Funchal as planned and were able to occupy the modernised apartment without further building work. At the same time, sufficient assets remained as a financial reserve. The financing covered the entire investment requirement from the outset.
What other buyers can learn
Anyone moving permanently to Madeira should treat the purchase as a complete project. When the purchase price, additional costs and modernisation are planned together, a reliable financing emerges without later top-up loans or unplanned extra costs.
Frequently asked questions
Can modernisation on Madeira be co-financed directly?
Why is not all of the equity used?
Which modernisations are especially common for apartments in Funchal?
Is Funchal suitable as a permanent residence?
Conclusion
An apartment in Funchal offers ideal conditions for permanent life on Madeira. Anyone who plans the entire investment realistically and takes all modernisation into account from the start creates a solid financial basis for a new chapter on the Atlantic.
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Two generations realise their dream together
To the case report →A similar situation in Portugal? Let's talk.
Every financing in Portugal 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