Practical case Tenerife: Apartment in Playa de las Américas – From second home to centre of life
The buyer was managing director of a software company; his wife worked as a tax adviser. Both planned to reduce their professional activity gradually over the coming years and to work mainly from Tenerife.
At a glance
- Purchase price: 895.000 €
- Financing required: 626.500 €
- Equity: 478.850 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
A place that became more familiar over the years
A couple from Karlsruhe had spent time on Tenerife regularly for more than ten years. At first classic holidays were the focus; later the stays became ever longer. With each visit the wish grew to shift everyday life to the island permanently.
After several viewings they chose a generous apartment in Playa de las Américas. Decisive were the excellent infrastructure, the proximity to the promenade and the ability to reach all important everyday amenities conveniently.
Initial situation
The buyer was managing director of a software company; his wife worked as a tax adviser. Both planned to reduce their professional activity gradually over the coming years and to work mainly from Tenerife.
The existing equity had been built up over many years. At the same time, sufficient liquidity was to remain available for future investments and private reserves.
Financing overview
- Purchase price: 895.000 €
- Additional costs: 116.350 €
- Renovation (kitchen, bathrooms, air conditioning and terrace design): 94.000 €
- Total investment: 1.105.350 €
- Equity: 478.850 €
- Financing required: 626.500 €
The financing share corresponded to around 70 % of the purchase price.
The challenge
The apartment had an excellent location but did not match the buyers' ideas in terms of design.
Planned were an open-plan kitchen, modern bathrooms, energy-efficient air-conditioning units and a complete redesign of the generous terrace with wind-protected seating areas.
All work was to be completed before the apartment was used regularly.
Analysis
Even before the contract was concluded, all modernisation measures were calculated in detail.
In addition, a financing plan was drawn up that took into account both the current income situation and the later transition into retirement.
Through the targeted use of equity, enough financial scope remained for future changes.
Financing solution
The financing was set at around 70 % of the purchase price.
The additional costs and a considerable part of the purchase price were covered from own funds.
All modernisation costs were already fully integrated into the financing. This meant the apartment could be modernised immediately after handover.
Outcome
Today the buyers use their apartment for several months a year and are preparing their permanent move to Tenerife at their leisure.
The property already fully matches their ideas, so no further major investment will be necessary in the coming years.
What other buyers can learn
Anyone planning a later centre of life abroad often benefits from acquiring the property early. This leaves enough time to adapt the home to their own wishes and to get to know the region intensively.
Frequently asked questions
Is Playa de las Américas only a holiday resort?
Why were the modernisation costs planned before the purchase?
Why was not all of the equity used?
Conclusion
Buying an apartment in Playa de las Américas shows that good property financing should always consider the entire life plan. Anyone who combines purchase price, modernisation and long-term future goals creates a solid basis for a later centre of life on Tenerife.
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To the case report →A similar situation in Spanien? Let's talk.
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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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