The “Buy to Let” market in Morocco
The “Buy-to-let” property simply means that after the purchase and ownership of the property is completed, the owner will rent out the property. Of course the rent payments will exceed the usual mortgage payments that are being made by the owner. The market has in fact seen a lot of action since the King and the Government has launched the latest Vision 2010. The project has a massive budget of $10 billion and main areas of thrust are the infrastructure, leisure and tourism industry and other aspects that will aid in building the tourism sector.
Cost Effective
Residential property development is also been encouraged and a number of 5 star resorts and apartments are also been commissioned and built. This will also give a huge potential boost to the accommodation that is also being built for the tourists. This is an excellent opportunity for the investors as well since the prices for the buildings are already so low. It is also estimated that there will be an increase of about 15-20% in the price of the investment in the next year. Now the investors can purchase cheap and sell at a higher rate.
Luxury Ensured
Though the constructions costs are reasonable priced, the resorts are created for those that like super luxury as well. The harbors are also been built and expanded to let the financially rich and elite anchor their boats and yachts as well. In fact the seas side cities re been designed in such a way as to attract the rich and offer competition to the established playgrounds of the rich and famous. Those that purchase the investments in these parts can generate a huge volume of business, as tourist will be able to provide with high rental values.
Investors Choice
During the tourist season, 85% occupancy is quite normal. Morocco is attracting the tourist faster than it can build the resorts. For this reason, the rental incomes for the buy to let properties are currently quite high. Since the investor is looking at generating a second line of income and covering the mortgage payments as well. A ballpark figure for a 2-bedroom apartment that costs 100,000 Euros can produce a rental income of 2000 Euros per month during the tourist high season.
Duration Matters
The investor should also look at the strategy of whether they want to give the property for shorter rental income or longer rental incomes. Some of the property owners also choose to rent for a long term during the off-season and then rent the apartment for a shorter term during the high tourist season. The strategy that you would follow for renting out the apartment would partly depend on the kind of investment that you have currently made.
The strategy of “Buy to let” may not be the ideal situation for every one. This strategy will only work if you have the right location, where the tourism industry is the greatest revenue earner and is close to other attractions and amenities in the location.
