Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Case report · Portugal-Festland

Financing a terraced house in Coimbra – A historic university city as a new centre of life

A couple from Hesse, both grammar-school teachers, were planning a permanent move to Portugal after entering retirement. They were looking for a terraced house with a small garden, three bedrooms and an additional study for voluntary projects and digital further education.

Key figures

At a glance

  • Purchase price: 470.000 €
  • Renovation: 56.500 €
  • Financing required: 304.900 €
  • Equity: 245.100 €

Anonymised case figure · not a binding statement for other projects · §34i GewO

Typical, anonymised case. Names, places and individual financing figures have been adjusted to protect privacy. The process reflects a typical advisory situation for non-resident financing in Portugal.

Between tradition, science and a high quality of life

Coimbra is one of Portugal's most historic cities and is known far beyond the country's borders for its university. At the same time, the city offers excellent infrastructure, short distances and a comparatively relaxed price level. For German-speaking buyers who want to move to Portugal permanently, modern terraced houses in quiet residential settings are an attractive alternative to the coastal regions.

Initial situation

A couple from Hesse, both grammar-school teachers, were planning a permanent move to Portugal after entering retirement. They were looking for a terraced house with a small garden, three bedrooms and an additional study for voluntary projects and digital further education. The house they found was in a well-kept residential district of Coimbra but was to be comprehensively modernised before moving in.

Financing overview

  • Purchase price: 470.000 €
  • Additional costs: 23.500 €
  • Renovation: 56.500 €
  • Total investment: 550.000 €
  • Equity: 245.100 €
  • Financing required: 304.900 €

The challenge

The buyers deliberately wanted to keep part of their assets as a reserve for retirement and at the same time carry out all modernisation measures immediately after the purchase. Later top-up financing was to be avoided.

Analysis

In regions with a more moderate price level too, the financing should be based on the entire investment. Alongside the purchase price and acquisition costs, modernisation in particular determines the actual capital requirement.

With financing of 65 % of the purchase price, a balanced structure emerged between equity and outside financing. At the same time, enough financial flexibility remained for the new chapter of life.

Financing solution

The financing took all planned measures into account:

  • installation of a modern kitchen
  • complete modernisation of the bathrooms
  • energy-efficient air conditioning
  • creation of a quiet home-office and work area
  • structured network cabling
  • custom-made fitted wardrobes
  • new LED lighting throughout the house

All work was completed immediately after the acquisition.

Outcome

The terraced house could be occupied without a further building phase. The buyers moved their centre of life to Coimbra as planned and had a modernly equipped home. At the same time, part of their assets remained as a financial reserve.

What other buyers can learn

It is not only the coastal regions that offer attractive options for a permanent move to Portugal. Cities like Coimbra are convincing for their quality of life, infrastructure and balanced price level. Anyone who plans the purchase price, additional costs and modernisation together creates a solid financial basis from the start.

FAQ

Frequently asked questions

Can modernisation costs be fully included in the financing?
Yes. If the measures are planned and transparently calculated before the purchase, they can often be part of the overall financing.
Why is financing used despite sufficient equity?
Many buyers want to preserve financial reserves and not tie up all their assets in a property.
Which modernisations are especially common for terraced houses in Coimbra?
Typical are new kitchens, bathrooms, air conditioning, network technology, lighting and individual storage solutions.
Is Coimbra suitable as a permanent residence?
Yes. Coimbra offers excellent infrastructure, medical care, cultural diversity and a high quality of life. The city is especially attractive to people who are looking for an urban environment without the bustle of the large coastal metropolises.

Conclusion

A terraced house in Coimbra can be an excellent choice for a permanent new start in Portugal. Financing that takes the purchase price, additional costs and all modernisation measures into account together creates planning certainty and forms the basis for relaxed living over the long term.

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Anonymised 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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