Make it Morocco ARTICLE
My agents get a mention too
WHEN you think of Morocco, it’s Marrakech, exotic medinas and the desert that spring to mind. But there’s so much more to the North African country. Like neighbouring Spain, it has miles and miles of Mediterranean coastline… but unlike Spain, it’s still mostly undeveloped. And it’s so much cheaper.
ANDRE EFRIEZE heads to Morocco’s north-east coast to find out just how far your money will go…
THE arrival of Morocco on the overseas property scene has a lot to do with the nation’s new king, Mohammed VI.
The moderniser, who took to the throne in 1999, has promised his countrymen more jobs, greater freedoms and a new prosperity.
In 2001 his government introduced Vision 2010 with the aim of bringing 10million tourists to Morocco every year. Already the number of visitors has swelled from 4.2million to seven million.
Last year European budget airlines were allowed to fly into the country, opening up the market even further.
EasyJet now flies daily to Marrakech, Ryanair has flights to there and to Fez, while British Airways and Royal Air Maroc fly into Agadir, Casablanca and Tangiers as well.
Flights to Tangiers from Heathrow cost from £266 in April, although you can fly to Gibralatar or southern Spain for half that and catch the short ferry hop across the Med.
One of the most popular areas for new developments is the Mediterranean coastline east of Tangiers. At present it takes an hour or so to drive there from the airport, but that will be cut in half once the new motorway is finished.
The new road is one of many major improvements being carried out to the infrastructure of the area, with around £5billion also being spent on transport and communication upgrades.
Going hand in hand with this is the investment in tourist resorts. Big money is coming in from the likes of Dubai, Qatar and Spain.
The new developments are mostly dotted around Tamuda Bay, which runs from the Spanish enclave of Ceuta, where you can catch ferries to Spain, down to Cabo Negro.
One of the investors here is Compass Properties, run by three Americans, brothers Rob and Rick Knight and their friend Chuck Bass.
They are developing a 1,200-apartment complex at Playa Vista. Being built on a hillside above the beach, it will have a private marina, pool, three on-site bars and five restaurants. While Phase One is almost sold out, there are still some two-bedroom apartments available in Phase Two for £64,900, while Phase Three of the development has just been launched, with one-bed apartments available for £39,500.
Rob Knight says the apartments will yield great rental values, as the area is hugely popular with Europeans and wealthy Moroccans and rental properties are in short supply
Rob reckons the income for the two peak months of July and August alone would cover the cost of the property. And, as prices have been rising by 15 per cent a year, buyers should make a tidy profit when they sell.
“You can rent a two-bedroom apartment for around £100 a night – and more during July and August,” he says.
“Plus, the Moroccan government has some very helpful tax breaks to foreign buyers. Capital gains tax is charged at 20 per cent, but this is cut in half after five years and goes down to nothing after 10.
“And there is no tax on rental income for the first five years.”
If it’s golf you’re after along with your sea view, 30 minutes back up the coast is the 18-hole Cabo Negra golf course. One of the world’s biggest overseas agents, MRI, is selling properties just two minutes away from the course.
Ric Ashby, regional manager for MRI in Morocco, says: “We sell to people from all over, but particularly to the British and Irish.
“Tamuda Bay will not be a ‘Little Britain’ like parts of Spain have become and it certainly won’t be as over-developed as the Costas. The King has been to Spain and Portugal to see how things were done there and aims to avoid their mistakes.
“No building is allowed to be more than four storeys high and every resort must have a ratio of 40 pc buildings to 60pc garden. The aim is to keep this area feeling exclusive.”
WHY BUY
It’s cheaper. At less than half the price of Spain you get more for your money.
There’s greater growth and investment potential.
It’s largely unspoiled.
Blends “Western” comforts (restaurants etc) with North African adventure.
Friendly locals, great food and relaxed pace of life.
Low cost of living.
THE COSTS
Moroccan banks offer mortgages at rates between 4.2 per cent and 5.5pc for up to 70pc of the property’s value over 15 years.
Fees – you should budget for about 5pc to 6pc of the property price.
Transfer tax, 2.5pc.
Legal fees, 1.1pc.
Notary fees, 0.5pc.
Land registry, 1.5pc to 2pc
'We just fell in love with the place'
SONETTE Aboud has been living in Bristol with her husband and two kids for the past five years.
But now the 49-year-old medical secretary, who emigrated to the UK from South Africa, has grown tired of the British weather.
“At first I really liked the cold winters, but I’m now fed up with them,” she says. “I need more sun in my life. We went to Marrakech in June for a holiday and fell in love with it.
“We’d already decided to invest in property but everything here is so expensive, so when we got back I started investigating Morocco. I came across Compass and found them to be very professional. We went on a viewing trip and bought a two-bed apartment in Playa Vista.
“I just loved that it was right on the beach. And there was no pressure from Compass. They really were fantastic. We will pay £64,900 from our savings. The plan is to rent it out when it’s finished in 2009, although we’re now thinking of moving there – it’s such a beautiful country.”
ANDRE EFRIEZE heads to Morocco’s north-east coast to find out just how far your money will go…
THE arrival of Morocco on the overseas property scene has a lot to do with the nation’s new king, Mohammed VI.
The moderniser, who took to the throne in 1999, has promised his countrymen more jobs, greater freedoms and a new prosperity.
In 2001 his government introduced Vision 2010 with the aim of bringing 10million tourists to Morocco every year. Already the number of visitors has swelled from 4.2million to seven million.
Last year European budget airlines were allowed to fly into the country, opening up the market even further.
EasyJet now flies daily to Marrakech, Ryanair has flights to there and to Fez, while British Airways and Royal Air Maroc fly into Agadir, Casablanca and Tangiers as well.
Flights to Tangiers from Heathrow cost from £266 in April, although you can fly to Gibralatar or southern Spain for half that and catch the short ferry hop across the Med.
One of the most popular areas for new developments is the Mediterranean coastline east of Tangiers. At present it takes an hour or so to drive there from the airport, but that will be cut in half once the new motorway is finished.
The new road is one of many major improvements being carried out to the infrastructure of the area, with around £5billion also being spent on transport and communication upgrades.
Going hand in hand with this is the investment in tourist resorts. Big money is coming in from the likes of Dubai, Qatar and Spain.
The new developments are mostly dotted around Tamuda Bay, which runs from the Spanish enclave of Ceuta, where you can catch ferries to Spain, down to Cabo Negro.
One of the investors here is Compass Properties, run by three Americans, brothers Rob and Rick Knight and their friend Chuck Bass.
They are developing a 1,200-apartment complex at Playa Vista. Being built on a hillside above the beach, it will have a private marina, pool, three on-site bars and five restaurants. While Phase One is almost sold out, there are still some two-bedroom apartments available in Phase Two for £64,900, while Phase Three of the development has just been launched, with one-bed apartments available for £39,500.
Rob Knight says the apartments will yield great rental values, as the area is hugely popular with Europeans and wealthy Moroccans and rental properties are in short supply
Rob reckons the income for the two peak months of July and August alone would cover the cost of the property. And, as prices have been rising by 15 per cent a year, buyers should make a tidy profit when they sell.
“You can rent a two-bedroom apartment for around £100 a night – and more during July and August,” he says.
“Plus, the Moroccan government has some very helpful tax breaks to foreign buyers. Capital gains tax is charged at 20 per cent, but this is cut in half after five years and goes down to nothing after 10.
“And there is no tax on rental income for the first five years.”
If it’s golf you’re after along with your sea view, 30 minutes back up the coast is the 18-hole Cabo Negra golf course. One of the world’s biggest overseas agents, MRI, is selling properties just two minutes away from the course.
Ric Ashby, regional manager for MRI in Morocco, says: “We sell to people from all over, but particularly to the British and Irish.
“Tamuda Bay will not be a ‘Little Britain’ like parts of Spain have become and it certainly won’t be as over-developed as the Costas. The King has been to Spain and Portugal to see how things were done there and aims to avoid their mistakes.
“No building is allowed to be more than four storeys high and every resort must have a ratio of 40 pc buildings to 60pc garden. The aim is to keep this area feeling exclusive.”
WHY BUY
It’s cheaper. At less than half the price of Spain you get more for your money.
There’s greater growth and investment potential.
It’s largely unspoiled.
Blends “Western” comforts (restaurants etc) with North African adventure.
Friendly locals, great food and relaxed pace of life.
Low cost of living.
THE COSTS
Moroccan banks offer mortgages at rates between 4.2 per cent and 5.5pc for up to 70pc of the property’s value over 15 years.
Fees – you should budget for about 5pc to 6pc of the property price.
Transfer tax, 2.5pc.
Legal fees, 1.1pc.
Notary fees, 0.5pc.
Land registry, 1.5pc to 2pc
'We just fell in love with the place'
SONETTE Aboud has been living in Bristol with her husband and two kids for the past five years.
But now the 49-year-old medical secretary, who emigrated to the UK from South Africa, has grown tired of the British weather.
“At first I really liked the cold winters, but I’m now fed up with them,” she says. “I need more sun in my life. We went to Marrakech in June for a holiday and fell in love with it.
“We’d already decided to invest in property but everything here is so expensive, so when we got back I started investigating Morocco. I came across Compass and found them to be very professional. We went on a viewing trip and bought a two-bed apartment in Playa Vista.
“I just loved that it was right on the beach. And there was no pressure from Compass. They really were fantastic. We will pay £64,900 from our savings. The plan is to rent it out when it’s finished in 2009, although we’re now thinking of moving there – it’s such a beautiful country.”