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Morocco Property for sale - Economic Factors
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Property prices 50% less than other major European resorts
Morocco is an emerging property market, and we are currently at an early stage
of the property markets growth. This is a perfect time for property investment
as property prices are at a low and are set to rise as the Moroccan property
market and supporting infrastructure matures.
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Low cost of living - experience a luxury lifestyle at little expense
The cost of living in Morocco is much cheaper than most European destinations.
In a list of Global cost of living rankings compiled by Finfacts (2005 / 2006)
the only entry for Morocco was Casablanca at number 59. London is number 3.
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Booming property market
At this time the property market in Morocco is booming. Its huge time of growth
for Morocco especially parts earmarked to be included in the national
development plan. These areas are being transformed into luxury resorts with
supporting infrastructure for the tourism industry. This and many other factors
create a huge demand for accommodation and property investors are happy to move
in early, purchase property at excellent value for money and look to generate
rental yields whilst waiting for the market to build and force property prices
upwards.
* Between 0% and 20% tax on any
capital gains
Morocco appeals to investors due to, among many other factors, its favorable tax
legislation. Capital gains is charged on property at the rate of 20% if sold
within 5 years, 10% if sold within 10 years and 0% if sold after 10 years.
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0% Inheritance tax to family
Property investments are seen as a safety net often for the children or
relatives of the investor. In Morocco there is zero inheritance tax if it is
inherited by family. This is another reason that favors a Moroccan property
investment over many other property markets as heavy taxes can apply to the
beneficiary of inherited property in many alternative property markets.
* No annual property tax for
first 5 years
Morocco has positioned itself favorably to encourage international investment
and has a policy that there is zero property tax charges for the first 5 years.
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Rental occupancy reaching 90% most years during the Peak Season
Unlike many emerging property markets where an investor would make his
investment as early as possible then sit back and wait for a period of time for
the area to attract tenants and start to generate rental yields, Morocco has a
solid tourism base and can boast 90% rental occupancy in most cases over the
high season. It will be possible to cover mortgage payments and bills for the
year through rental gains achieved in the high season (June - September). A
€100,000 3 bed apartment could be expected to generate a monthly rental yield of
€3,000 for the 4 high season months.
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60% mortgages available
many emerging markets offer much less flexibility than the more established
markets when it comes to finance options. Investors can be required to finance
their investments in stage payments or even in much larger lump sums as lenders
can see the investment as high risk initially then usually begin to offer
improved finance options as development of the market continues and risk is
reduced. It is possible in Morocco to borrow up to 80% of the value of the
property over 15 years at reasonable interest rate (currently around 6.0%
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project (Vision 2010) to increase tourism backed by King Mohammed and the UAE.
Aiming to improve infrastructure and increase tourism by 10m visitors per year.
King Mohammed VI and the UAE have developed a huge project to invest massive
funds into Morocco to help increase tourism. These funds are to be spent on
improved infrastructure including roads, trains, marinas, ports, shopping malls,
beach clubs etc. The overall goal of the Vision 2010 project is to drastically
increase visitor numbers by a goal amount of 10 Million per year.
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Increased tourism generated by the Vision 2010 project will create huge
requirement for rental accommodation
The huge increase in tourism that is currently underway and set to continue to
grow due to the Vision 2010 development project requires vast volumes of
residential accommodation. The government is encouraging luxury developments in
the major resort areas which international property investors will seek to
purchase at rock bottom prices and then uses their investment to supply the ever
growing demand for accommodation and generate solid rental yields for the
investor.
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Capital growth around 15% - 30% based on last year figures (30% Homes Overseas
Magazine)
The huge development is also expected to help drive property values higher as
major infrastructure and resorts complete. There are many different figures
speculating about Morocco and potential capital growth gains with some quoting
as much as 30%, but growth between 15% and 30% is more realistic looking
forward.
* Open skies policy
activated on 1st Jan 2006 will allow low cost airlines to service Morocco and
create competition lowering fares.
The "Open Skies" policy is a clear sign of the dedication Morocco has to
increasing visitor numbers. By allowing an open skies policy its a clear
invitation to airlines to service major resort areas in Morocco. The competition
for passengers creates a natural price watchdog ensuring fares are kept
competitive. This is all welcome news to the property investor in Morocco as
property with easy communications is much sought after by holiday homebuyers,
and also the greatest demand for rental accommodation is usually within a short
distance from a major airport.
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Yacht club & berth fees for under £30/month
Morocco and its property resort developments are very much geared at the luxury
end of the market. Morocco is already attracting film stars and the worlds
wealthy are purchasing property on many of the new resorts. Morocco is
positioning itself as a new Puerto Banus or St Tropez. Morocco has 1 major
advantage over these existing hot spots, prices are very reasonable and this
fact is attracting even the wealthiest of people who see no reason to stick to
traditional destinations when Morocco offers the same 5 star treatment but at a
fraction of the cost.
Economy
Morocco’s Economy is growing rapidly due largely to foreign investments. Morocco
can produce many labour intensive products far cheaper than any other country
close to Western Europe. Morocco faces the major problems that all developing
countries face Morocco has a free market economy that has grown by an average of
4% a year since 1983. The government has adopted a proactive privatization
creating opportunities in the telecommunication, utilities and automotive
sectors. There is a free trade zone at the port and airport of Tangier and
merchandise entering these zones is exempt from customs, fiscal and exchange
control
Reasons Why Morocco Is An Intelligent Property Investment Location
* Property prices 50% less than Spain and other European resorts
* Low cost of living - experience a luxury lifestyle at little
expense
* Booming property market
* Between 0% and 20% tax on any capital gains
* 0% Inheritance tax to family
* No annual property tax for first 5 years
* Rental occupancy reaching 85% most years during the Peak Season
* 70% mortgages available
* Huge project (Vision 2010) to increase tourism backed by King
Mohammed and the UAE. Aiming to improve infrastructure and increase tourism by
10m visitors per year.
* Increased tourism generated by the Vision 2010 project will
create huge requirement for rental accommodation
* Capital growth around 15% - 30% based on last year figures (30%
Homes Overseas Magazine)
* Vision 2010 to provide new roads, marinas, trains, 5 star
resorts, shopping malls, beach clubs
* Open skies policy activated on 1st Jan 2006 will allow low cost
airlines to service Morocco and create competition lowering fares.
* Yacht club & berth fees for under £27/month
* Safe investment – Notary supervised property registration
similar to France & Spain
* Beautiful sandy beaches
* Stunning Golf Courses, Tennis Clubs, Riding Clubs, Waterskiing,
Sailing, Scuba diving, Hunting, Hiking, Camel treks, Culture.
* Mediterranean climate - Hot summers and mild winters
* French, Spanish & English widely spoken as well as traditional
Arabic
* Site Seeing
* Costa del Sol is just 30 minutes away by hydrofoil from
Tangiers
* Accessible (Tangiers) via helicopter, ferry, regular flights.
Experience Moorish culture at its best!
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