Should I buy A Vacation Rental In Morocco?
Moroccan Holiday Apartments
Your Place In the Moroccan Sun
For foreign investors, there's never been a better time to buy in Morocco. It enjoys a strong economic climate influenced by the King of Morocco himself. New roads, airports and ports are being constructed to boost the tourism industry and provide a solid infrastructure. There's even a proposal for a road tunnel under the Straits of Gibraltar to attract millions of tourists from Europe - only nine miles distant.
The Moroccan people are friendly and hospitable and will even invite you into their homes to offer you a hearty traditional meal of couscous and some refreshing mint tea served in a silver teapot - but be careful with sugar overload as they're far too lavish with it.
Refreshing Mint Tea
Moroccan Beaches to Rival the Caribbean
Morocco boasts two coastlines with pure white sands to rival the Caribbean so the prospective purchaser won't have to look far before a suitable property is found in a near idyllic location.
Spain is so built-up nowadays, especially along the Costa del Sol, so it's a refreshing change to see the coastline of Northern Morocco still relatively unspoilt. Many developments are springing up but they're tastefully designed with no high-rise buildings and are constructed on a smaller scale.
King Mohammed VI views tourism as the way ahead for the country’s continued financial growth and to provide employment opportunities for the general populous. Little wonder that Morocco is holding its own in the stakes for the world’s best emerging property market. Marrakesh, one of Morocco's five imperial cities was recently voted best worldwide destination by TripAdvisor's Traveller's Choice. The King intends to develop six brand new resorts along the Moroccan coastline where a huge selection of different properties will be available to purchase, from the smallest studio unit to opulent villas with their own private pool and lush sub-tropical gardens. If it's an old medina house or riad you wish to renovate there's still plenty choice available at reasonable prices compared to European countries.
The Kids Will Love Camel Riding on the Beach
The Buying Process
The buying process is relatively simple and comes in three stages. You'll need the assistance of a notary in Morocco to do this. Usually, the agents marketing the property will be able to recommend one. It might involve several trips to the country before you're able to finalise things. All documentation is in French and arrives by courier. There are tax incentives and advantages to purchasing in Morocco and there's no such thing as inheritance tax.
The buyer will put down a reservation fee of around two thousand GB Pounds once a suitable property is found, whether it's a flat or a house you wish to live in yourself or a holiday home you wish to let. The process is the same for a property that's mortgaged or for one to be purchased outright. The reservation fee will fix the price so you'll have no worries about price increases.
The unit of currency in Morocco is the Dirham (MAD) which is a closed currency meaning you can't take Dirhams out of the country or buy them in another country beforehand.
Whenever you make a payment for your deposits it'll need to be changed to Dirhams and the agents will advise you of reputable currency exchange companies.
After the initial reservation period of around a month, you'll be requested to pay roughly forty percent of the total price as your balance of the deposit and this has to be signed and sealed within two weeks of the request with your payment included.
The final payment of approximately sixty percent of the total price is made when the developer has completed the property, depending on how long the development takes to finish. The whole process normally takes a year. Throughout this time, the sales agent is on hand to talk you through the next stage and answer any queries you have. If you're paying for your property with a mortgage you'll have to open a Moroccan bank account.
At your final meeting with the notary, you'll sign the deeds in person and collect your copy. You also pay transaction costs of approximately five percent of the cost of the property at this point. You'll also have to set up an account with the electricity and water company before you can move in or let the property.
Then all you have to do is furnish your new home. Furniture packages are widely available and reputable suppliers can provide everything from air-conditioning units to white goods and place settings as well as stylish furniture for every room.
And when all this has been done, there's nothing further for you to do but enjoy your newly-discovered place in the sun!
Relaxing In the Sun at Tamuda Bay
Getting a Return on Your Investment
Rather than leave your holiday home investment sitting empty when you're not using it, why not let it to other holiday makers and make it pay for itself? A reputable management agency will enable you to do this wherever you live in the world and it's easy to set up your own website at very little cost if any. This assists your clients in finding the best information on the area as well as your property. Here you can store a wealth of useful data and photos that'll prove invaluable to prospective tourists.
Ait Benhaddou - Film Set for 'Gladiator'
Typical Moroccan Bazaar
Finding Renters Is Easy With Sites Such as HomeAway
In order to advertise your holiday accommodation to the widest possible audience, sites such as HomeAway are your best ally. Here you can showcase your property by adding photos and information. There's also an availability calendar and a data base of useful tips. As well as maps and information on the locality, you don't have to be Sherlock Holmes to get the most up-to-date details on the area as this appears on searches automatically. The beauty of listing with HomeAway means your clients remain confident that the transaction runs smoothly and they won't fall foul of scammers.
Chefchaouen, Northern Morocco
A good management agency ensures that your property is kept looking its best whenever new guests arrive and they'll be on hand to help them make the most of their stay. The agency provides linen and towels and makes sure your guests know when to arrive and depart. They can also arrange pickups and recommend points of interest that guests might otherwise miss. You'll have peace of mind as an owner that your holiday home is maintained and managed efficiently. Utility bills will be paid on time and you'll be confident that they'll advise you swiftly if there are any problems that need resolving.
Tangier In Northern Morocco
After reading this article, would you invest in Morocco?
Morocco is in North Africa
© 2015 Stella Kaye