Buying in Morocco

Discussion in 'Morocco Property' started by investor27, Jun 27, 2007.

  1. investor27

    investor27 New Member

    For those people reading this post im assuming you've already purchased in Morocco or are currently carrying out research on the country / developments on offer hence looking at the Morocco Section, I hope this section provides you with all the information you are seeking.

    To start with, for those looking into buying in Morocco i'll mention why I currently believe Morocco is such a good country to invest in.

    1. Huge investment in Tourism, objective of the "Plan Azue" is to increase visitors to 10 million by the year 2010 & to provide concomitant infrastructure & facilities.
    2. Moroccan government has signed "Open Skies" agreement with EU to allow European airlines to operate at Moroccan airports without restrictions.
    3. The "Open Skies" agreement has seen the arrival of low cost airlines such as Easyjet, Thomsonfly & Ryanair announcing new routes, more to be added in 2007.
    4. Favourable tax laws for foreign investors - no property tax for 5 years & how capital gains tax.
    5. Mortgages are available with 60 - 70% the standard amount borrowed.
    6. Close to the Costa del Sol - 30 minutes by hydrofoil to Tangiers from Tarifa & Algeciras 7. Year round sunshine - Hot summers, mild winters, an ideal winter sun destination.

    There are several resorts being introduced in Morocco, developers from Dubai are also investing Millions, Qatar recently launched Al Houara, Emaar will be launching Tinja, currently most of the focus seems to be on the "Plan Azure" Resorts - Mediterrania Saïdia Resort, this resort is on the first on the "Plan Azure" & has the Kings backing. In brief the resort will have; 9 major hotels, 3 golf courses, 840 berth marina, huge commercial centre, water park, sporting facilities.

    I am also happy to advise / assist on developments and have extensive knowledge on most developments, especially those in nothern Morocco.

    Feel free to ask questions or if you wish post me a pm

  2. Peter Mitry

    Peter Mitry <B>Egypt Forum Founder Member</B>

    The Best Developers

    Hi Vimal

    I have a network of highly motivated agents in both the UK, Ireland & Spain and I am constantly looking for new off plan projects to offer. As Brokers, we check out the project and carry out due diligence on the promoters and constructors and try to negotiate favourable deals with the Developer. We pay 80% of our commissions away and keep a small overide for ourselves. With your contacts in Morocco it would be interesting to know who you believe are the best operators. I am aware of Property Logic and Fadesa in Mediterranea Saidia but I am interested in other areas as M.S. is too advanced to appeal to my network. Please PM me if you are able to offer advice.
  3. seannie1

    seannie1 New Member

    You Lot Could Possibly Be Constituted As A Charity,i Suggest You Up Your Cut And Go Easier On Yourself,your Too Good.
  4. Dear Agents,

    Dont forget to advise your clients on Mortgages in Morocco, very competative currently 4.64%.

    We are dealing with all the major banks and helping clients complete.

    Happy to offer any advice

    Jeff Scott
    Moroccan Mortgage Alliance
  5. seannie1

    seannie1 New Member

    no doubt remuniration is dished out copiously to those who plug your gig,or would a free ride be the order of the day,and if so would you care to give my company a meaningful plug whenever you find yourself in an influental position in terms of advertising media,and maybe we can put "pain in the tash" publicity budgets exactly where we want them,banished to extinction.
  6. Nick Malandrinos

    Nick Malandrinos New Member

    Moroccan Mortgage and Re-Mortgage

    Hi, I am looking for a mortgage to purchase 70% of a property in Tangier, I have already paid 30% deposit. Can you recommend a Broker or Bank to contact. I have been told so far that a re-mortgage is not possible at the moment in Morocco, is this fact.
    Ultimately I want to re-mortgage the property and use the finance to purchase another property abroad!
  7. Lee Filkins

    Lee Filkins Administrator Staff Member Premium Member


    Nick, You are pushing your luck. They have just entered the mortgage market and frankly do not know what they are doing.

    I am trying to borrow 50% of the value/current purchase price. Not only that I will pay VAT on the interest rates until the mortgage is paid off. The paper chase is plainly absurd. Every second day I have been asked to provide the same information in one form or another. e.g, marital status, no of children, passport number, Letter from DHSS, to confirm that they are aware of my existence, the latest is to obtain a sworn letter to confirm that I do not have another property in Morocco and I do not have another mortgage there.

    For what you are planning to do, i.e.equity release. Morocco is not the Country.
  8. Nick Malandrinos

    Nick Malandrinos New Member

    Moroccon Mortgage

    Hello Mr Camel
    Many thanks for your warnings and it is not easy arranging a mortgage in Morocco, however I have 3 companies tracking one down. By the time I am ready to try releasing some capital from this property which may well be the middle of next year I am hoping that the Moroccan Mortgage System will have moved on and at least consider re-mortgaging.
    When I find a mortgage to consider I'll let you know.
  9. Lee Filkins

    Lee Filkins Administrator Staff Member Premium Member

    Hi Nick,
    It is kind of you to address me as Mr Camel when Sir Camel would have been sufficient.
    Jokes aside.

    While, I admire your positive thinking but in life we have to reconcile between positive thinking and realities on the ground.

    No way will the Banking change in Morocco between now & next year. Morocco has taken the French Banking practises and try to obtain a mortgage is France is a nightmare, until you are in employment, your children have flown off and you have paid off your main mortgage and your mistress is not costing you too much.

    If you are self employed, you dont even try. I wish you luck but if you insist on equity withdrawl my sincere advise would be not to rely or committ yourself to the next transaction.
  10. Janoulaki

    Janoulaki New Member

    Buying process


    Find a notaire, as this is very important. The notaire plays a big role in the Moroccan buying process and you will make your life much easier. Essentially your lawyer (notaire) will be acting on your behalf and therefore it is best to appoint notaire before you found a property. Most recommended is to make sure your lawyer is appointed to:
    • review of preliminary contract to ensure compliance with laws of relevant jurisdiction
    • report on the contract as a whole highlighting any clauses included wwhich you might want to negotiate, and any clauses which are missing and should be included to provide you with comfort
    • due diligence on the developer of the property to check planning permissions, land registry, building permits etc.
    • undertaking negotiations with lawyer (notaire) of the developer on any issues which you have requested to be changed/included
    • represent you at the closing and signing on your behalf (if you will not be able to attend)

    BOOKING FORM and BOOKING FEE (Contrat de Reservation)

    When you found a property that you like, you should put in a verbal offer and most likely you will be asked to sign a booking form or reservation agreement. This form will reserve the property for you until such a time as you return your signed preliminary agreement. Booking/reservation fee might be EUR 1500 – EUR 3000 for standard apartment. It is very important to clarify if the deposit is refundable should you not proceed with the purchase, however agent/developer has got the right to say that this deposit is non-refundable. If buying off-plan it is necessary to ensure that you are allocated a specific apartment at this time.

    PRELIMINARY AGREEMENT (Contrat Preliminaire / Compromis de Vente)

    Shortly after you signed booking form you are going to be issued preliminary agreement. Please don’t forget to sign and return this legal document, as from now you entered legal binding. Failure to return signed document within deadline (usually 14-30days) gives right to seller to sell the property to another purchaser.
    This contract requires you to pay the deposit. Deposits will depend on the overall value of the property, but on average you can expect to pay 10% for resale and up to 40% for off-plan property. Please keep in mind that this deposit (called as well first stage payment) may vary for off plan properties depending on the construction whether it was commenced or not (if construction is almost complete this payment may be very high). This contract will also outline the stages at which the next payments are due and when you will be required to pay the final amount and sign the final deed of purchase.
    Once preliminary contract received pass it immediately to your lawyer for the review. The lawyer will check this contract for compliance with the laws of Morocco.

    Your compromis de Vente should have these main terms:
    - personal details of the seller and buyer
    - mention of the title deed
    - mention of planning permission
    - object of the agreement
    - completion date
    - sale price
    - receipt of the deposit paid
    - expenses and taxes to be met by the buyer
    - condition precedents (very important part, which enable you to withdraw from the contract if they are not fulfilled. For example, if your purchase depends on obtaining a mortgage in Morocco or in UK, this should be added as a clause stating that the purchase is dependent on obtain the mortgage).
    - penalties if one of the parties withdraws from the transaction

    FINAL PURCHASE DEED or FINAL CONTRACT (completion or Acte de Vente)

    When you return your signed preliminary contract to the developer or agent you have entered a legally binding contract to pay for your property in full. So make sure you didn’t sign something you might not be happy with later. At this stage any disputes can be settled by reference to the signed contract, and legal action can be taken if necessary.
    At the time specified in the preliminary contract, you will be obliged to sign the final purchase deed. This must be done in front of a public notary in Morocco, who oversees that the final transfer of the property into your name is done within the laws of Morocco. If you cannot attend you can sign over power of attorney for someone to sign on your behalf. (the most reasonable will be your notaire)
    When the final contract is signed the remainder of the balance is due, including any fees and taxes and you are registered as the new owner of the property in the land registry in Morocco. Shortly after this you should receive your Title Deeds and keys to the property. While this is straightforward for a new-build home, it has been known to take up to a year for resale homes as every member of the vendor’s family needs to agree to the sale.

    If you are not in possession of the title deeds, you do not officially own the property – regardless of how much you paid.
  11. Nick Malandrinos

    Nick Malandrinos New Member

    La Baie Panoramique

    Hi, just wondered if you knew anything about the above development??
    Many Thanks

  12. investor27

    investor27 New Member

  13. Sunnyshores

    Sunnyshores New Member

    Mortgages in Morocco information
    I have researched mortgages in Morocco for a property I have brought completing in 2009. There are various agents who can get mortgages, but they seem to charge a hefty set up fee. I also contacted BMCE a moroccan bank in London. They are English speaking and you can take all your douments into their London Branch. They seem reasonably priced and if you go to them directly you save a heap on fees.
    Note: I havent actually used them though, so dont know if it is as straight forward as it seems.
  14. traceyw8727

    traceyw8727 New Member

    Im currently considering whether to raise finance in uk or try a Moroccan mortgage so im making as many enquiries as possible. Could you explain why you did not use BMCE-have you gone for a uk mortgage instead?
  15. Sunnyshores

    Sunnyshores New Member

    Hi Tracey

    I dont need a mortgage until 2009, so I was just looking to see what was possible before committing myself to the off-plan deal.

    I think remortgaging your UK property will definitley be the cheapest (interest rates, fees etc). We cant do that this time as we have several overseas properties, and where we have needed to raise finance for them, we have increased our UK mortgage. So, we are now at the stage that our personal income is not enough to increase the UK mortgage; as you can not include the income from foreign and UK rents.

    Foreign mortgages also look at your personal income and rarely include the rent, but look at affordability a different way, so for us this was possible whereas a UK increase is not.

    Obviously whichever scenario is used you have to be sure you could finance the mortgage yourself if for some reason you did not receive any income from the investment!

    For info, I was also told that each person is only allowed ONE moroccan mortgage.

    Does anyone else have any advise as to how they have financed purchases as the affordability criteria reduces with each purchase? Assuming each purchase is self financing from rent (and one can afford to prop it up for a time if necessary) can you then ignore that outgoing?
  16. awahee123

    awahee123 Banned


    Anyone got any info on currant prices within Morocco what is the cheapest development available at this time and where is it?
  17. Sunnyshores

    Sunnyshores New Member

    prices have risen alot in the last year - not necessarily because they're worth more! Begining of 2007 £50k would have got you in to some golf or beach developments around Tangier. £100k would have got you into Marrakesh - both new build off plans. Resales are cheaper.
    I think now you'd probably need £80k Tangiers and £120k in Marrakesh. This probably isnt the very cheapest, but I would be very careful if looking at that end of the market.
  18. awahee123

    awahee123 Banned

    Well I suppose whilst people are paying these silly prices they will stay high.
  19. Sunnyshores

    Sunnyshores New Member

    I'm in 2 minds about whether they're "silly prices".

    Initially, yes, very silly - for a mostly unproven tourist destination, at prices that only Europeans can afford and lets face it in a country that doesnt even have the infrastructure for tourism yet. Secondly, this is the entry price, prices in other emerging markets have risen to these levels gradually after several years, alongside the local populations wealth.

    But, then on more thought, why shouldnt supposedly quite luxurious and well planned tourist accomodation in (almost!) Europe cost £100k. Its the effect of globalisation, a 2 bed appartment on the beach catering for European tourists costs pretty much the same everywhere. Bring into account the uber-rich Arabs and then even Saidia and Al Houara at up 3 times this price could be realistic.

    On balance though, I do think as these are mostly tourist developments (not residential) and there are few tourists at present, paying such an inflated prices and hoping for anything other than a longterm profit is a bit ambitious.
  20. awahee123

    awahee123 Banned

    I agree with you sunnyshores its all to do with the tourist side of things,As you say it looks like it will be a while before anyone sees any real return on their investment unless things take off in a big way.

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