Investing In Holiday Property In Morocco

With a close proximity to Europe, sunny tropical weather almost throughout the year and property prices that have not yet touched European levels, Morocco offers a lot of potential if you want to invest in a holiday property.

King Mohammed’s resolve to turn this idyllic country into a major tourist destination, which includes building 6 resorts and ramping up the entire air, road and rail network along with other infrastructure is sure to pay dividends by the year 2010. With an increasing number of low-cost airlines already bringing in larger number of tourists from the USA and Europe, it is just a matter of time before property prices shoot through the roof.

As more tourists enter Morocco, there will be an increase in demand for holiday properties and you could cash into the incoming tourism boom by buying a holiday property now and renting it out to tourists. If you have a larger budget, then you could also book several under-construction properties that might get completed by 2010 and sell them once there is a substantial rise in market rates.

Once you have made up your mind to invest in a holiday property, you will need to hire the services of a recommended and experienced real estate broker and a lawyer. They should have a thorough knowledge of the local market and should also be able to converse in English and all the local languages of Morocco. Once your agent short-lists some properties, then you will need to visit Morocco and physically check each property.

Care should be taken to ensure that the holiday property should be near beaches, resorts, the golf course or any other existing or proposed attraction that the Moroccan Government is planning to include in the coming years. This will attract holidaymakers towards your holiday property.

Once you have identified a suitable property, then you will need to approach the seller through your agent and make an offer. You will also need to get a financial and technical evaluation of the property done before you make any payment to the seller. If you are approaching a developer, then you should make sure that he or she is dependable and can finish the project at the promised time. If you need finance for your holiday home, then again your agent should be able to arrange for suitable lenders. You will need to pay 30% of the property value as a deposit while your lender will provide the balance 70%.

The Moroccan Government has simplified many rules but the choices in getting a mortgage for your property are still quite narrow. You will also have to pay various taxes on the purchase of your property and also on your rentals. You will have to pay Capital Gains tax on a descending basis if you sell your property within 10 years, after which you will be completely exempted. Although the paperwork can be quite tedious, the combination of a good agent and lawyer should ensure that everything proceeds smoothly. The advantage in buying your own holiday property is that you too could drop in several times in a year and enjoy Moroccan hospitality at its best.

Thus, by investing now in the perfect holiday property of your choice, you can enjoy your own holidays and also rent it out or sell it to other tourists in the future. Instead of waiting in the wings and then ruing a lost opportunity, the time has now arrived for you to take concrete action and enjoy the fruits of your investment in the future.

Filed Under: Projects In Tangier