Morocco is currently one of the world's leading emerging markets for investment in property abroad. Luxury real estate can still be purchased at excellent prices and purchasers enjoy the exotic atmosphere, stunning natural beauty and variety this country provides. With progressive government policies firmly in place, the tourist economy is on the brink of a boom and purchasers of property abroad are acting fast.

Reasons why property in Morocco is a good investment

• Property prices are currently very competitive.
• With the low cost of living, it is possible to experience a luxury lifestyle at relatively small expense.
• The property market in Morocco is currently booming and looks set to continue to do so for a considerable time.
• Capital growth is estimated at around 15% - 30%, based on last year´s figures ( Homes Overseas Magazine quotes the growth to be nearer 30%).
• Capital gains tax stands at between only 0% and 20%.
• Inheritance tax is not charged.
• Property tax is not charged during the first 5 years.
• Rental occupancy currently reaches around 85% during peak season and it is set to increase as the tourism drive continues.
• 70% mortgages are currently available to provide additional infrastructure and new roads, marinas, trains, 5 star resorts, shopping malls, beach clubs, thus increasing visitors to the area.
• The Open Skies policy allows competition for Moroccano air routes. It will generate competition, increase services and dramatically lower air fares.
• Yacht club and mooring fees are under £27/month. These are turning even the most wealthy away from the more traditional ultra expensive Mediterranean resorts.
• Beautiful sandy beaches with crystal clear water.
• Stunning golf courses, tennis clubs, riding clubs, waterskiing, sailing, scuba diving, hunting, hiking, camel treks, culture attract all types of tourists and investors alike.
• The Mediterranean climate bringshot summers and mild winters, permitting
  year-round tourism.
• French, Spanish and English is widely spoken, as well as traditional Arabic.
• The Costa de la Luz is just thirty minutes away by hydrofoil from Tangiers.
• Morocco is easily accessed through Tangiers via helicopter, ferry or on regularflights to Casablanca , Agadir or Tangiers.

There are three stages to property purchase:

1. Making an Offer

When you have decided on a property in Morocco you will need to make a verbal offer through the agent which will need to be accepted by the vendor. Once an agreement on price is achieved, sale negotiations will proceed.

At this stage a lawyer should be appointed by you to formalise the agreement. With most properties being off-plan there is often little or no room for negotiation at this stage as the price is normally fixed, dependant upon the current phase of construction.

2. Appointing a Lawyer

It is wise to appoint a lawyer who is fluent in your language so that you properly understand all the legalities and exactly what is happening. Our agents will gladly recommend you a good lawyer who will carry out all the necessary checks on the property and complete the legal requirements of the sale.

3. The Purchase

The purchase is a standard procedure, similar to anywhere on the Continent. The buyer will open a Euro account with a bank in Morocco and transfer Sterling or Euros to this account. The Euros will then be converted into Dirhams when paying funds to the vendor.

For our off-plan property, the standard procedure is:

Reservation Fee - This is required immediately to reserve the unit(s) and freeze the price. The required reservation fee depends on the unit you choose, the developer and the development, but typically is around € 3,000.

Deposit - After 30 days, 30% of the cost of the property is due. This acts as a deposit and is all you are required to pay until completion of the property. 30% is common however various developers and developments require different deposit payment percentages. They may also require interim payments throughout the construction process. You will need to ensure you fully understand exactly what payment structure is in place before committing to a property purchase in Morocco.

Completion - Upon completion, the remaining 70% is payable. Some buyers will look to finance this sum with a mortgage. The balance of 70% may vary depending on the specific payment structure adopted for your development.

Additional Costs - Property buyers in Morocco should expect to pay around 6.5% of the property price. This amount is generated from lawyer fees, notary costs, registration etc. Land sales are subject to a charge of 1% to cover the notaries' fees

Mortgages

Mortgages are available in Morocco. Buyers can borrow up to 70% over 15 years with an interest rate (Feb 06) of around 5.5%.