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Will being tied into a rental pool for 9 years, diminish my investment?

Discussion in 'Buying Overseas Property' started by Investy, Feb 28, 2008.

  1. Investy

    Investy Senior Member

    Currently investing in a property in Saidia, Morocco and there is an option to join a rental pool, indeed the Government prefer owners to join as the whole point of them planning and bringing about such unusually large, prestigious developments was to significantly boost tourist numbers so they sought measures to 'encourage' at least 70% of investors (on certain plots) to join rental pools in order to ensure a guaranteed supply of properties for the end user holiday market.

    Will my joining the time bound' pool which we think will mean a contract of 9 years, diminish the attractiveness of the investment, or enhance it?

    I did'nt put this in the Moroccan section as I want views from people with a variety of experiences and background, particularly those who know about the French leaseback schemes which I guess are a similar proposition.
     
  2. DC

    DC New Member

    As they say following the crowds will give the same as the crowds, if you all try to sell in year 9 similar to leasebacks in france, then when you sell there will excess supply over demand and prices will fall.
    So possibly. Maybe as a strategy sell year 12 or 13, or when the froth is gone out the market or year 7 or 8 pre end of contract.
     
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