Practical case Mallorca: Villa in Pollensa – With an existing property in Germany as a solid foundation
Both buyers had a regular pension income as well as additional income from a rented apartment in Germany. They also owned a debt-free single-family house that was to be kept for now, as the family still wanted to use it from time to time.
At a glance
- Purchase price: 1.420.000 €
- Renovation: 130.000 €
- Financing required: 992.000 €
- Equity: 742.600 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
A new home between the Tramuntana and the Mediterranean
A couple from Rhineland-Palatinate had dreamed for many years of spending their retirement on Mallorca. After numerous stays on the island, it was clear that Pollensa would be the ideal place. The historic old town, the proximity to the Port de Pollença and the impressive landscape of the Serra de Tramuntana offered exactly the mix of peace, culture and nature they were looking for.
After a longer search, they found a detached villa with a pool, a Mediterranean garden and generous living space in a quiet residential area.
Initial situation
Both buyers had a regular pension income as well as additional income from a rented apartment in Germany. They also owned a debt-free single-family house that was to be kept for now, as the family still wanted to use it from time to time.
As the property in Germany was not to be sold, the financing had to be sustainable solely on the basis of the available income and equity.
Financing overview
- Purchase price: 1.420.000 €
- Additional costs: 184.600 €
- Renovation: 130.000 €
- Total investment: 1.734.600 €
- Equity: 742.600 €
- Financing required: 992.000 €
The financing share corresponded to around 70 % of the purchase price.
The challenge
The villa was in very well-kept condition. Nevertheless, it was to be energetically modernised and adapted to the couple's own living habits. Planned were new air conditioning, the replacement of the windows, a modern heat pump as well as the redesign of the kitchen and the bathrooms.
At the same time, the buyers deliberately wanted to keep their property in Germany and not use it for the financing.
Analysis
At the centre was a long-term sustainable household calculation. In addition to the pension income, the regular rental income was also taken into account.
All renovation costs were then fully calculated and included in the total investment before the purchase.
As sufficient equity was available, a financing could be chosen that offered both planning security and financial flexibility.
Financing solution
The financing was built on around 70 % of the purchase price.
The additional costs as well as a considerable part of the purchase price were borne from own funds.
All renovation measures were also part of the financing plan from the outset. This allowed the work to begin immediately after the transfer of ownership, without additional capital being needed later.
Outcome
Within a few months, the villa was fully renovated and adapted to personal wishes.
The couple now enjoy a large part of the year in Pollensa and continue to use the house in Germany for stays with family and friends. Both properties complement each other sensibly and meet different needs.
What other buyers can learn
Buying a property in Spain does not necessarily require selling the previous home. Anyone with sufficient income and equity can sensibly integrate both properties into their long-term life planning.
Frequently asked questions
Does the property in the home country have to be sold?
Why were the renovation costs planned in directly?
Is rental income relevant to financing planning?
Conclusion
The purchase of a villa in Pollensa shows that property financing should always take the entire personal situation into account. Anyone who sensibly combines existing wealth, ongoing income and future housing plans creates a long-term stable basis for the dream of life on Mallorca.
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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