I want to buy a property but I don’t want to sell my investment funds to pay for it

I want to buy an investment property, but I don't want to sell my funds to pay for it.

That was exactly what Andrés put to Quality Finance.

Andrés, 47. Specialist doctor. Madrid.

He has spent years building an investment fund portfolio. €650,000 accumulated with discipline and patience. He wants to buy a €400,000 apartment to rent out — but there's a problem.

Selling the funds to cover the purchase would trigger a massive tax bill. Years of accumulated capital gains taxed all at once.

His situation when he came to Quality Finance:

• €650,000 in investment funds with significant accumulated gains
• Wants to buy a €400,000 property to rent
• His bank is offering a mortgage at 3.8%
• Does not want to liquidate positions or take the tax hit

"I've spent 15 years building that portfolio. I'm not going to destroy it in one move to buy a flat."

What we did together

1. We structured a pledged credit (crédito pignorado)‍

Using his funds as collateral, Andrés obtained financing at 2.1% — versus the 3.8% mortgage his bank was offering. Without liquidating a single position. Without any tax impact.

2. We calculated the real cost of each option

• Sell funds + mortgage: 3.8% interest rate + income tax on capital gains + reduced portfolio
• Pledged credit: 2.1% interest rate + zero tax impact + portfolio intact

The difference over 10 years: over €80,000 in favour of the pledged credit.

3. We optimised the pledged portfolio

‍We made sure that the funds used as collateral continued generating more return than the cost of the credit. The positive margin fully justified the operation.

Andrés bought the property without selling a single fund. His portfolio remains intact and growing. And his financing cost is almost half of what his bank was offering.

All case details have been modified to protect privacy. Presented for informational purposes only.