Full Version: Is Morocco Still A Sure Fire Way To Make Easy Money?
I have been looking at Morocco for about a year now. Prices of offplan developments have been steadily increasing. Do people still think that Morocco offers a safe place to invest or like me, do you think that good investments are only to be found in first phase / pre launch developments?
QUOTE(boomorbust? @ Mar 3 2007, 07:07 PM) [snapback]568332[/snapback]
I have been looking at Morocco for about a year now. Prices of offplan developments have been steadily increasing. Do people still think that Morocco offers a safe place to invest or like me, do you think that good investments are only to be found in first phase / pre launch developments?
I am not convinced that Morocco was ever a good place to invest. If the only people who can make money are the ones who invested in offplan, then you would be well advised to stay clear.
QUOTE(muttley @ Mar 3 2007, 09:43 PM) [snapback]568393[/snapback]
I am not convinced that Morocco was ever a good place to invest. If the only people who can make money are the ones who invested in offplan, then you would be well advised to stay clear.
Muttley,
If your not convinced, then which location do you think would be a sure way to make easy money?
QUOTE(AustralianInvestor @ Mar 4 2007, 03:26 AM) [snapback]568490[/snapback]
Muttley,
If your not convinced, then which location do you think would be a sure way to make easy money?
If your not convinced, then which location do you think would be a sure way to make easy money?
Firstly, I think you need to take "sure" and "easy" out of that sentence. If property is your preferred vehicle of investment then you should first look in an area you know. I'm sure there are still up and coming areas.
I have just returned from Marrakech. Lots of building work going on , new appartments £100k to £1 m+ and upmarket hotels. Lots of money coming in from the north Cassablanca and Tangier.
We had a tour guide for the two of us, He himself had invested in 5 hectares of land on the outskirts of Marrakech and friends of his had invested in new build appartments in Marrakech they all very possitive that the price will keep on going up lots of expensive cars and new shops being built, Affluent young society eagar for the latest trend.
We had a tour guide for the two of us, He himself had invested in 5 hectares of land on the outskirts of Marrakech and friends of his had invested in new build appartments in Marrakech they all very possitive that the price will keep on going up lots of expensive cars and new shops being built, Affluent young society eagar for the latest trend.
The greater the consideration i devote to this, on the contrary,the more convinced i become that the vast majority will NOT make money in Morocco.
I have always maintained that this is a high risk play,and not one suitable for the first time investor.
Within the context of the location,Plan Azur, and Med Saidia in particular,whilst highly commendable in conceptual terms,is quite simply,overly ambitious.
Many have identified terrorism as being a major concern,though i would suggest that whilst this may well be an issue,,prospective owners have more to fear from fundementals as opposed to fundementalists.
To pursue an analogy-Saidia is reminiscant of Costners "Field of Dreams" where a backward farmer hears voices urging him to build a baseball stadium in one of his remote fields."Build it and they will come"
The visitors the farmer received were ghosts and i fear an identical fate awaits investors.
There will not be sufficient demand created in the short term to make the numbers work.The largely inexperienced investor led owner base will become disillusioned with the early rental yield and respond by slashing rent and attempting to sell.This will create a spiral of decline with no exit strategy.The artificially inflated prices have no local demand underpinning and prices will tumble to levels beneath current off plan.Low cost airlines are not generally famed for their
philanthropism and routes will be uncerimoniously axed.pulling the life machine plug.Investors could well be left with just a pile of bricks under the hot African sun.
Regretably,unlike Costners film ,this is not fiction and is a likely scenario.Neither does the LJDF developer inspire confidence in this regard.By way of illustration,presumably the large deposits taken have been reinvested in their next project in Morocco reinforcing their ongoing faith in the country?
Again regretably not,the money has been used to purchase an island off the coast of ......Brazil!
I have always maintained that this is a high risk play,and not one suitable for the first time investor.
Within the context of the location,Plan Azur, and Med Saidia in particular,whilst highly commendable in conceptual terms,is quite simply,overly ambitious.
Many have identified terrorism as being a major concern,though i would suggest that whilst this may well be an issue,,prospective owners have more to fear from fundementals as opposed to fundementalists.
To pursue an analogy-Saidia is reminiscant of Costners "Field of Dreams" where a backward farmer hears voices urging him to build a baseball stadium in one of his remote fields."Build it and they will come"
The visitors the farmer received were ghosts and i fear an identical fate awaits investors.
There will not be sufficient demand created in the short term to make the numbers work.The largely inexperienced investor led owner base will become disillusioned with the early rental yield and respond by slashing rent and attempting to sell.This will create a spiral of decline with no exit strategy.The artificially inflated prices have no local demand underpinning and prices will tumble to levels beneath current off plan.Low cost airlines are not generally famed for their
philanthropism and routes will be uncerimoniously axed.pulling the life machine plug.Investors could well be left with just a pile of bricks under the hot African sun.
Regretably,unlike Costners film ,this is not fiction and is a likely scenario.Neither does the LJDF developer inspire confidence in this regard.By way of illustration,presumably the large deposits taken have been reinvested in their next project in Morocco reinforcing their ongoing faith in the country?
Again regretably not,the money has been used to purchase an island off the coast of ......Brazil!
.Neither does the LJDF developer inspire confidence in this regard.By way of illustration,presumably the large deposits taken have been reinvested in their next project in Morocco reinforcing their ongoing faith in the country?
Again regretably not,the money has been used to purchase an island off the coast of ......Brazil!
[/quote]
On the contrary, the LJDF developer had 2 projects in Med Saidia last June and now has 8 - if that's not faith in the project and re-investment, I don't knoiw what is.
Again regretably not,the money has been used to purchase an island off the coast of ......Brazil!
[/quote]
On the contrary, the LJDF developer had 2 projects in Med Saidia last June and now has 8 - if that's not faith in the project and re-investment, I don't knoiw what is.
I like the Tangiers Atlantic developments becuase they will be supported by the rising middleclass population in Tangiers, as well as easy access from Tangiers airport, the ferrys from spain and eventually the tunnel, but this is not expected to be complete until 2025 and hasn't been given the go ahead and is mired in engineering and commercial complications.
I have invested in Tanjah beach, which is a 20minute drive from Tangiers airport. This is a 5 star resort where most units have front line golf and sea views.
The payment structure is extremely competitive, 12% down and 13% in monthly payments over three years. There is a 2 year mortgage holiday when the resort in finished as well as a 2 year 6% rental guarantee. There are bank guarantees covering the up front deposit.
As far as I can see, this development offers about the best possibilities for impressive returns without risking too much up front cash. However, there will be alot of development up the Atlantic coast, so risk of over supply unless it is well marketed. On a plus side, these developments are all very high quality, beach and golf resorts and are very low density. I really think this area is going to be comparible to the upmarket areas of the Algarve. I expect prices to double within 3 years and triple in 5 to 7.
I have invested in Tanjah beach, which is a 20minute drive from Tangiers airport. This is a 5 star resort where most units have front line golf and sea views.
The payment structure is extremely competitive, 12% down and 13% in monthly payments over three years. There is a 2 year mortgage holiday when the resort in finished as well as a 2 year 6% rental guarantee. There are bank guarantees covering the up front deposit.
As far as I can see, this development offers about the best possibilities for impressive returns without risking too much up front cash. However, there will be alot of development up the Atlantic coast, so risk of over supply unless it is well marketed. On a plus side, these developments are all very high quality, beach and golf resorts and are very low density. I really think this area is going to be comparible to the upmarket areas of the Algarve. I expect prices to double within 3 years and triple in 5 to 7.
QUOTE(magnate @ Mar 4 2007, 12:12 PM) [snapback]568609[/snapback]
The greater the consideration i devote to this, on the contrary,the more convinced i become that the vast majority will NOT make money in Morocco.
I have always maintained that this is a high risk play,and not one suitable for the first time investor.
Within the context of the location,Plan Azur, and Med Saidia in particular,whilst highly commendable in conceptual terms,is quite simply,overly ambitious.
Many have identified terrorism as being a major concern,though i would suggest that whilst this may well be an issue,,prospective owners have more to fear from fundementals as opposed to fundementalists.
To pursue an analogy-Saidia is reminiscant of Costners "Field of Dreams" where a backward farmer hears voices urging him to build a baseball stadium in one of his remote fields."Build it and they will come"
The visitors the farmer received were ghosts and i fear an identical fate awaits investors.
There will not be sufficient demand created in the short term to make the numbers work.The largely inexperienced investor led owner base will become disillusioned with the early rental yield and respond by slashing rent and attempting to sell.This will create a spiral of decline with no exit strategy.The artificially inflated prices have no local demand underpinning and prices will tumble to levels beneath current off plan.Low cost airlines are not generally famed for their
philanthropism and routes will be uncerimoniously axed.pulling the life machine plug.Investors could well be left with just a pile of bricks under the hot African sun.
Regretably,unlike Costners film ,this is not fiction and is a likely scenario.Neither does the LJDF developer inspire confidence in this regard.By way of illustration,presumably the large deposits taken have been reinvested in their next project in Morocco reinforcing their ongoing faith in the country?
Again regretably not,the money has been used to purchase an island off the coast of ......Brazil!
I have always maintained that this is a high risk play,and not one suitable for the first time investor.
Within the context of the location,Plan Azur, and Med Saidia in particular,whilst highly commendable in conceptual terms,is quite simply,overly ambitious.
Many have identified terrorism as being a major concern,though i would suggest that whilst this may well be an issue,,prospective owners have more to fear from fundementals as opposed to fundementalists.
To pursue an analogy-Saidia is reminiscant of Costners "Field of Dreams" where a backward farmer hears voices urging him to build a baseball stadium in one of his remote fields."Build it and they will come"
The visitors the farmer received were ghosts and i fear an identical fate awaits investors.
There will not be sufficient demand created in the short term to make the numbers work.The largely inexperienced investor led owner base will become disillusioned with the early rental yield and respond by slashing rent and attempting to sell.This will create a spiral of decline with no exit strategy.The artificially inflated prices have no local demand underpinning and prices will tumble to levels beneath current off plan.Low cost airlines are not generally famed for their
philanthropism and routes will be uncerimoniously axed.pulling the life machine plug.Investors could well be left with just a pile of bricks under the hot African sun.
Regretably,unlike Costners film ,this is not fiction and is a likely scenario.Neither does the LJDF developer inspire confidence in this regard.By way of illustration,presumably the large deposits taken have been reinvested in their next project in Morocco reinforcing their ongoing faith in the country?
Again regretably not,the money has been used to purchase an island off the coast of ......Brazil!
You cannot write off the whole of Morocco based on Saidia alone!
I would not invest in Saidia (and perhaps not in Plan Azur at all) - but i will be investing in Morocco this year - most likely in/near a major city
The country is booming - just take a visit and see for yourself
QUOTE(magnate @ Mar 4 2007, 12:12 PM) [snapback]568609[/snapback]
will become disillusioned with the early rental yield and respond by slashing rent and attempting to sell.This will create a spiral of decline with no exit strategy.
Many people I know own property abroad and dont even let it out!
Sure rentals will take a while to bed - in but looking post 2010 Im confident the unusually large offering of facilities in the one site will result in robust rentals and considerable capital growth. No doubt the large number of premiership footballers owning here will have an effect on prices and rentals!
11 large on - site hotels will give a lot more exposure to the relatively low numbers of owner occupiers chosing to let - out. this is a highly unusual factor.
Close proximity to the beach cannot be underestimated as a rental boosting factor. I know from holidays to Spannish and Greek islands that like for like inland property rents are considerably lower.
Some golf people I know tell me the Algarve properties set INTO golf courses and next to the beach attract astrnomical price and rent. The green fees are much higher than Saidia's. People simply will come to Saidia once they see it in the brochures.
Do your won detailed research, compare like for like in Spain and the Algarve then make your decision (dont forget the on - site marina)
QUOTE(dogbox @ Mar 5 2007, 10:30 AM) [snapback]569331[/snapback]
No doubt the large number of premiership footballers owning here will have an effect on prices and rentals!
You're giving too much weight to this. Premiership footballers are invariably young, have far too much money and not much financial nous. If I said "Buy shares in BP. Wayne Rooney and Frank Lampard have just bought some!" you'd think I was mad.
There's a block of luxury appartments near me. Two of the penthouses were bought off plan by two different, high profile premiership footballers two years ago. About half of the other appartments remain unsold or unlet.
If you want to make money from a premiership footballer then play poker with one.
QUOTE(muttley @ Mar 5 2007, 08:34 PM) [snapback]569927[/snapback]
If you want to make money from a premiership footballer then play poker with one.
Absolutely brilliant...... and probably true
Hi all,
I wouldn't base my investment on some high profile footballers investing there. That is a marketing ploy used to offload all these off-plan properties.
Having said that I looked at property market in the East European countries and was not terribly impressed by the money making potential.
As such we went to Morocco with a fairly sceptical view and were actually pleasantly surprised by what is happening there.
We did see three areas: Marrakech, Essaouira and Agadir and certainly could see why these were booming.
I think the Moroccan government is pressing all the right buttons to attract tourism and to get inward investment and is so far succeeding.
We will actually invest our cash there but will not go for the traditional off-plan purchase. Why give away that much profit? We are rather thinking of doing some property development ourselves. Raising the necessary funds through co-investors/partners will probably be the difficult bit. Once we raise the money, moroccan banks will fund the rest of the project. That way at least we know exactly how much money we will make in advance witout the need to rely on uncontrollable property price increases.
If anyone on here has experience in raising funds through private equity investors/partners, all suggestions will be greatly appreciated.
Kind Regards,
Krille
christian.suriano@prolan-invest.com
I wouldn't base my investment on some high profile footballers investing there. That is a marketing ploy used to offload all these off-plan properties.
Having said that I looked at property market in the East European countries and was not terribly impressed by the money making potential.
As such we went to Morocco with a fairly sceptical view and were actually pleasantly surprised by what is happening there.
We did see three areas: Marrakech, Essaouira and Agadir and certainly could see why these were booming.
I think the Moroccan government is pressing all the right buttons to attract tourism and to get inward investment and is so far succeeding.
We will actually invest our cash there but will not go for the traditional off-plan purchase. Why give away that much profit? We are rather thinking of doing some property development ourselves. Raising the necessary funds through co-investors/partners will probably be the difficult bit. Once we raise the money, moroccan banks will fund the rest of the project. That way at least we know exactly how much money we will make in advance witout the need to rely on uncontrollable property price increases.
If anyone on here has experience in raising funds through private equity investors/partners, all suggestions will be greatly appreciated.
Kind Regards,
Krille
christian.suriano@prolan-invest.com
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