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Buying Property in Morocco

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					                                                  Presented by Daniel Toriola


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                                                    Buying Property In Morocco
                                                         By Parag Sheth



    About Morocco

Call it Tangier, Marrakesh or Casablanca but for all the people who love long and idyllic beaches under
the sun, there is no place like morocco to suit their needs. The charm of living or holidaying in morocco
is in its multiplicity as its offers attractions for every type of visitor. For people who love to bathe in the
sun, there are miles of beaches; while inland lies Berber country where, among the snow-capped Atlas
Mountains, the energetic can walk or trek and for the more adventurous there’s Sahara desert. It is
only recently that investors are putting all of these factors together to come up with an ideal investment
option in Morocco property.

Due to its proximity from Western Europe, Morocco of late has become the ideal African starting point
for the traveller. Throughout morocco one can open-air markets selling rugs, woodwork, jewellery and
leather - said to be the softest in the world.

After gaining independence from France in 1956, the Morocco of today is an exquisite amalgamation of
the exotic magic of the Islamic, Arabic, African world - the world of medinas and minarets, desert and
mountain; yet it almost touches Western Europe and, for all the differences, retains a European gloss,
the legacy of the French Protectorate.

Morocco is located at the westernmost tip of North Africa, bordering Algeria to the east and Mauritania
to the south and southeast, the Atlantic Ocean to the west and the Mediterranean to the north. Running
through the middle of the country is the Atlas mountain range, which leads to the fertile plains and
sandy beaches of the Atlantic coast.

With the opening of tourism and Moroccan governments’ initiative into tourism and infrastructure
building many outsiders are finding it a wealthy proposition to own a piece of the booming market.

The Property Market in Morocco

The last few years have seen a dramatic increase in the numbers of overseas investors buying
apartments, homes, villas – amongst the other properties in morocco. Morocco with its combination of
great weather, exotic location, and good food, Morocco property is becoming the most sought-after
location for better-off overseas as well as not so well of overseas investors. Which place in the world

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can provide you the opportunity to rub shoulders with Fashion designers Yves Saint Laurent and Jean
Paul Gaultier both have Morocco property and keep houses in Marrakesh and prices reflect strong
European interest. Small, traditional houses start at just £40,000, although there will be substantial
restoration costs to pay.

If you are considering buying a property in Morocco for investment, now is the time to make your move.
Moroccan interest rates are low and property prices are rising steadily.

Compared to Spain in Morocco properties are available at approximately one third of the price for
comparable property located in Spain. The major cities of Morocco have recorded capital growth of
over 30% in the last 3 years.

The cities in Morocco which has been witnessing higher capital growths are Casablanca, Fes,
Marrakech and Tangier. The Areas along the Mediterranean coast are expected to be the next
booming areas in morocco – current prices are very low.

In addition, King Mohammed 6th has liberalised the political and tax system - rental income is now
exempt from tax for 5 years and no capital gains are paid if the property is sold after 10 years

For buying property in Morocco, built in mortgages are available for investors and they can borrow upto
70% of the value of the Moroccan property for upto 15 years from a Moroccan bank. The interest rate
as of Feb 06 was 5.5%.

The Moroccan property market can effectively be divided into three sectors namely “riad” built around a
central garden with a fountain, and a “dar” a similar house without the central garden. Both are found in
the oldest part of the city, medina. The third sector is the new properties being build.

Why Invest in Morocco

With its unique location and being very near to Western Europe and its all the year round weather, it’s
uniquely suited to investors needs. The reasons for investing in Morocco is not just confined to its
location or weather but there many more things which makes investing in a Moroccan property a
profitable business investment. At this stage the property prices in Morocco are relatively low
compared to other destinations and is an emerging market coupled with is the sense of making a
secure investment. The tourism sector is booming in Morocco and people have reported 85%
occupancy rate for rented properties during high season. These reasons alone make Morocco a safe
investment destination.

If you are still little bit skeptical about purchasing property in Morocco this piece of news will certainly
make you think and take notice, the Moroccan King Mohammed VI and the UAE have allocated huge
investment into drastically increasing tourism further to a goal of 10m per year by 2010 apart from this
investment into developing infrastructure is also poring in from United States. This investment along
with several tax advantages also helps investors in feeling comfortable in investing in property in
Morocco.

The main points why one should invest into Moroccan property are given below.

Luxury lifestyle for very little Great value property 10 year building guarantee (similar to nhbc) Rental
yields 6% plus Strong emerging property market all set for very strong capital growth 0% Tax on

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                                              Presented by Daniel Toriola


rental income 0% Capital gains tax under £40k or after ten years 0% Inheritance tax when passed
onto family 100% repatriation of funds Government vision for 2010 tourism strategy Major investment
in infrastructure, airports and ports

There are very few locations in the World that investors can look to invest at excellent prices and
expect an immediate rental return with such high capital appreciation prospects.

Outlook

Morocco is already creating waves as the newest hot spot in the international property market. The
properties which are being constructed in properties be it hotels, residential apartments, villas, luxury
houses etc are comparable to the best in the world and available for a fraction of price compared to
similar properties around the world. The outlook for the Morocco property market is bound to go higher
as it is fast becoming the playground for the rich and famous going by media reports that say that large
number of the worlds wealthy, including film stars and sports heros. Richard Branson, the Rolling
Stones, Malcom Forbes, and even David Beckham are believed to have purchased property in
Morocco. With considerable investment going into developing the infrastructure like roads, ports,
bridges, airports and when completed it can be said with conviction that the prices of Moroccan
property will be far higher than investors can purchase at present. Also the resorts which are being
developed are expected to attract vast numbers of tourists on short term holidays generating excellent
rental yields for the investors who own these properties.

As far as the growth rate in property prices is concerned there are many different views, but in these
entire different views one thing is common that is the prices are bound to rise. Homes overseas
Magazine has quoted a capital growth of 30% but on a conservative note 15% is deemed as being
very achievable.

Also the outlook for the rental income from Morocco based property is set to increase over a period of
time as good rental yields are achievable from property in the new luxury resorts being constructed.
With people reporting 85% rental occupancy during the high season and the number of tourists set to
grow faster than the number of available accommodation this figure is expected to grow meaning
larger occupancy levels for investors and potential growth in rental income as demand grows.

The author of this article moderates at Totally Property - an overseas investment property forum that
specialises in property in Morocco. The forum can be found at
http://www.totallyproperty.com/morocco-property/.




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                                               Presented by Daniel Toriola


            Buying Property in Morocco is a Popular Overseas Property Investment Choice
                                                       By Dale Campbell



Buying property in Morocco is becoming increasingly popular with overseas investors as more people
realise what Morocco can offer them. One such offer is high quality developments being constructed at
bargain prices. Many of the properties are aimed at the luxury market and they have been fitted with
exceptional features and facilities. This is all helping Morocco to become famous as the foremost
destination for buying investment properties.

 Morocco is steeped in history and is seen as a magical and mystical world that beckons travelers and
tourists alike. Rabat, the Moroccan capital, is a modern day city that still holds its old world charm. The
coastline is a favourite with tourists and destinations like Casablanca (made famous by the 1942
American romantic drama) and Marrakech are by all. Morocco is expected to become increasingly
fashionable as a tourist destination, therefore investor forecasters are predicting that property prices
will keep on in increasing in value.

 Morocco has various hot spots that attract some of the world’s rich and famous, such as Saidia and
Tangier. Currently the property market in Morocco is emerging as one of the top most developing
markets with tremendous potential for investment, which is particularly good news considering today’s
economic climate in the UK. The Moroccan government is taking an active role in improving the
property market. They have implemented various initiatives, such as the King’s Vision 2010, to boost
the country’s tourism and infrastructure, which in turn will improve the property market and economy in
the country.

 Once you’ve decided where you want to buy a property in Morocco, the next step is to seek legal
advice so you don’t make any expensive mistakes. Anyone wanting to turn their property investment
into a buy-to-let property will need to pay tax on the income, although the first three years will be
exempt of tax. If the property is sold within five years, a capital gains tax is levied based on the sale
price less the purchase price. There is some good news regarding tax: because there is a UK-Morocco
Tax Treaty in place between the two countries, this protects the investor from being liable for capital
gains in both countries.

 When it comes to choosing the type of property you want to buy, be prepared to take time, effort and
commitment, especially if you want to find an unusual traditional style of property. Know your budget
and stick with it, and take photos of each property you view so you can remember each one. Once you
have found your property, you will need to place a verbal offer to the seller via the estate agent; bear in
mind that negotiation is rarely an option when buying property in Morocco. The seller will then decide if
the offer is to be agreed or if the price is to be raised. It is your choice to decide if you want to take the
sale of the property forward or to walk away. If you want to proceed, the next step is to draw up a
compromis de vente (“a pre-contract signed by the seller and buyer of a property that involves a
two-way promise that amounts to a provisional sales agreement”) which is preformed by a notaire
(ministry official). Once you have received the compromis de vente you have two weeks in which to
change your mind. If you want to proceed there are several more steps to complete and then the
property is yours to enjoy.

 Buying property in Morocco is an exciting opportunity for investors; not only will you have a property in
an exciting country, but you’ll have a property that could give you a really healthy return on your


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                                                 Presented by Daniel Toriola


investment.

Dale Campbell wrote the Article 'Buying Property in Morocco is a Popular Overseas Property
Investment Choice' and recommends you visit
http://www.homesoverseas.co.uk/buying-property-in-morocco for more information on buying property
Morocco




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