Buying in Morocco

[Nick Malandrinos]

Hi, just wondered if you knew anything about the above development??
Many Thanks
Nick

Originally Posted by investor27

For those people reading this post im assuming you've already purchased in Morocco or are currently carrying out research on the country / developments on offer hence looking at the Morocco Section, I hope this section provides you with all the information you are seeking.

To start with, for those looking into buying in Morocco i'll mention why I currently believe Morocco is such a good country to invest in.

1. Huge investment in Tourism, objective of the "Plan Azue" is to increase visitors to 10 million by the year 2010 & to provide concomitant infrastructure & facilities.
2. Moroccan government has signed "Open Skies" agreement with EU to allow European airlines to operate at Moroccan airports without restrictions.
3. The "Open Skies" agreement has seen the arrival of low cost airlines such as Easyjet, Thomsonfly & Ryanair announcing new routes, more to be added in 2007.
4. Favourable tax laws for foreign investors - no property tax for 5 years & how capital gains tax.
5. Mortgages are available with 60 - 70% the standard amount borrowed.
6. Close to the Costa del Sol - 30 minutes by hydrofoil to Tangiers from Tarifa & Algeciras 7. Year round sunshine - Hot summers, mild winters, an ideal winter sun destination.

There are several resorts being introduced in Morocco, developers from Dubai are also investing Millions, Qatar recently launched Al Houara, Emaar will be launching Tinja, currently most of the focus seems to be on the "Plan Azure" Resorts - Mediterrania Saïdia Resort, this resort is on the first on the "Plan Azure" & has the Kings backing. In brief the resort will have; 9 major hotels, 3 golf courses, 840 berth marina, huge commercial centre, water park, sporting facilities.

I am also happy to advise / assist on developments and have extensive knowledge on most developments, especially those in nothern Morocco.

Feel free to ask questions or if you wish post me a pm

Regards

[investor27]

Info about high speed train between Tangier & Marrakech:

BBC NEWS | World | Europe | France and Morocco in train deal

[Sunnyshores]

Mortgages in Morocco information
I have researched mortgages in Morocco for a property I have brought completing in 2009. There are various agents who can get mortgages, but they seem to charge a hefty set up fee. I also contacted BMCE a moroccan bank in London. They are English speaking and you can take all your douments into their London Branch. They seem reasonably priced and if you go to them directly you save a heap on fees.
Note: I havent actually used them though, so dont know if it is as straight forward as it seems.

[traceyw8727]

Originally Posted by Sunnyshores

Mortgages in Morocco information
I have researched mortgages in Morocco for a property I have brought completing in 2009. There are various agents who can get mortgages, but they seem to charge a hefty set up fee. I also contacted BMCE a moroccan bank in London. They are English speaking and you can take all your douments into their London Branch. They seem reasonably priced and if you go to them directly you save a heap on fees.
Note: I havent actually used them though, so dont know if it is as straight forward as it seems.

Im currently considering whether to raise finance in uk or try a Moroccan mortgage so im making as many enquiries as possible. Could you explain why you did not use BMCE-have you gone for a uk mortgage instead?

[Sunnyshores]

Hi Tracey

I dont need a mortgage until 2009, so I was just looking to see what was possible before committing myself to the off-plan deal.

I think remortgaging your UK property will definitley be the cheapest (interest rates, fees etc). We cant do that this time as we have several overseas properties, and where we have needed to raise finance for them, we have increased our UK mortgage. So, we are now at the stage that our personal income is not enough to increase the UK mortgage; as you can not include the income from foreign and UK rents.

Foreign mortgages also look at your personal income and rarely include the rent, but look at affordability a different way, so for us this was possible whereas a UK increase is not.

Obviously whichever scenario is used you have to be sure you could finance the mortgage yourself if for some reason you did not receive any income from the investment!

For info, I was also told that each person is only allowed ONE moroccan mortgage.

Does anyone else have any advise as to how they have financed purchases as the affordability criteria reduces with each purchase? Assuming each purchase is self financing from rent (and one can afford to prop it up for a time if necessary) can you then ignore that outgoing?

[awahee123]

Hi,

Anyone got any info on currant prices within Morocco what is the cheapest development available at this time and where is it?

[Sunnyshores]

prices have risen alot in the last year - not necessarily because they're worth more! Begining of 2007 £50k would have got you in to some golf or beach developments around Tangier. £100k would have got you into Marrakesh - both new build off plans. Resales are cheaper.
I think now you'd probably need £80k Tangiers and £120k in Marrakesh. This probably isnt the very cheapest, but I would be very careful if looking at that end of the market.

[awahee123]

Well I suppose whilst people are paying these silly prices they will stay high.

[Sunnyshores]

I'm in 2 minds about whether they're "silly prices".

Initially, yes, very silly - for a mostly unproven tourist destination, at prices that only Europeans can afford and lets face it in a country that doesnt even have the infrastructure for tourism yet. Secondly, this is the entry price, prices in other emerging markets have risen to these levels gradually after several years, alongside the local populations wealth.

But, then on more thought, why shouldnt supposedly quite luxurious and well planned tourist accomodation in (almost!) Europe cost £100k. Its the effect of globalisation, a 2 bed appartment on the beach catering for European tourists costs pretty much the same everywhere. Bring into account the uber-rich Arabs and then even Saidia and Al Houara at up 3 times this price could be realistic.

On balance though, I do think as these are mostly tourist developments (not residential) and there are few tourists at present, paying such an inflated prices and hoping for anything other than a longterm profit is a bit ambitious.

[awahee123]

I agree with you sunnyshores its all to do with the tourist side of things,As you say it looks like it will be a while before anyone sees any real return on their investment unless things take off in a big way.