catara

How long do you think it will take for overheat countries like Spain, Cyprus, Greece or France to follow? The flipper-business has been very productive in these countries. Of couse UK will have its own crash.

This is the current situation in USA: http://globaleconomicanalysis.blogspot.com...rd-landing.html The causes which led to this are similar to what has happened in Europe, Africa, Asia. Armies of real estate agents have lured people in buying over their means and the outcome will be a possible very ugly crisis everywhere. Of course, people who invested when prices were very low made a fortune. When I say "investment" I refer to purchases done after watching "A place in The Sun" or other manipulative TV shows...

Anything is cheaper than the rip-off 2006-prices Spain. How can Morocco, an undeveloped country, compare to Spain? the prices in Spain will crash and the prices in Morocco will crash after them. Do not use the same argument with developers from Dubai over and over again! Dubai will crash badly, the developers from Dubai come to Morocco to take advantage of some "so-called-investors" naivity. When prices will crash, they will just decrease their prices by 30% and still make a good living in Morocoo. the "so-called-investors" will be the ones which will get burned. Look at Las Vegas situation, the big construction companies have just decrease prices by 30% so the off-plan investors have just 30% of their investment. Morocco came too late on the market!

I am definitely not a flipper. I happened to have some properties whose value went up a lot, to my surprise. I was thinking lately of buying some holiday home(s) but I could not find some good ratio quality/price because everywhere flippers made a good living in the last 5 years.

I am in Liverpool, I had some interest in purchasing in Morocoo and/or Egypt but I decided to just visit them instead of purchasing there. Maybe I shall purchase in Morocco if prices become more down-to -earth. Egypt is too far.

Even at £100/m^2, this will add only £5000 per 50m^2 apartment. So £20000 would be an acceptable price for an entry level apartment. Why don't they make these kind of apartments available in Morocco?

Is it cheaper to build in Egypt than in Morocoo? Why is that? Or you are saying that Egypt developers are forced to sell cheap because nobody would buy their houses otherwise? Anyway, a built 1m^2 should not cost more than £200 in both Morocoo and Egypt. So a 50m^2 apartment should not cost more than £15000, including a good £5000 profit. The land in Egypt can be bought by Egyptians with about 3 penny per m^2.

In Egypt there are almost front line properties in Sharm or HUrghada for that price. I consider Egypt to be a better choice as it offers 12 months season with sun and warm water. The plane ticket costs £150 roundtrip. They have golf courses too.

This I agree, I loved Marakesh and the Atlas mountains. I have not been to the North MOrocco yet, but I might go after Saidia opens. Maybe I shall rent dogbox's villa, if he asks less than £300/week.

There are Golf Courses built everywhere- BUlgaria, Egypt, Canary Islands, etc, etc, etc,etc. How many golf players are in this world? One cannot base an investment on playing golf because this means just playing with money. About the beach, Fuerteventura has 30 km of pristine beaches where you can stay nude if you want to. I guess the Islamic rule of Morocoo will prohibit anything like that, isn't it?

>The reverse is happening. Lenders are offering more and more exotic loans. These are the latest spasms before the mortgage "industry" tightens up. >Even if there is a tightening which I think is reasonably likely, people buying in Morocco are generally not 'up against it' financially. What do you mean? People that buy in Morocco take mortgages here in UK. Those mortgages won't be easy to take in the future. The best INVESTING deals will be in USA in the next years. Morocco should have started with £15000 properties, then improve their infrastructure and after 10 years reach the £100000 property. BUt the Greed was too strong and they simply took advantage of the prices in Spain to ask these outrageous prices!!! By the way, I am sure there are people that pay millions of pounds for one house in Morocoo. Compared to them, your deal is indeed extremeley nice!

The easy money is still here. IN a few months banks will realize they cannot borrow anymore risky clients and will sharply tightening the borrowing. And I guess nobody has £200000 cash to purchase houses in Morocco, isn't it? So I think you have about 2-3 months to find "some special buyer", as they call them now in USA.

No, I am not at all pessimistic. I am just saying that £100000 for 1 bedroom in Spain or £50000 for 1 bedroom in Morocoo (both frontline) is way too much. Divide the price by two and you get the right price for those properties. That is all I am saying. If the prices do not half in 3 years (in real money, considering also the inflation) then you can tell me that I was wrong and I shall aknowledge.

Of course they are on the list. You can add the £30000+ ugly apartments in Turkey, the £50000+ ugly apartments in Caleta de Fuste or Costa Antigua in Fuerteventura, many areas in Tenerife, Hurghada (Egypt), Sal (Cape Verde), many area in Cyprus. This are places I have visited, I am sure there are many other "beauties" around...

I almost agree. There are also several other "worst investments", but Morocoo might top them all.

I mean prices which grew up due to the fact that many people took equities from their UK home and bouth abroad. This gave rise to a sharp increase of prices in Spain, Cyprus, Malta and even Morocco and Cape Verde. Do you see a sharp decrease in those markets too? This because not so many people will be able to buy abroad as the house value in UK is going to take a beating.

200000 Euros for a 1 bedroom-apt? These are the current prices for Front Line coastal Properties in Spain and this is the reason why Morocco looks like an excelent "investment" at 75000 Euros. But people will wake up and realize that money do not grow in trees.

Morocco and Cape Verde are already overpriced. This is because the builders compared prices in Morocoo with the ones in mainland Spain and the prices in Cape Verde with the ones in Canary Islands and Caraibeans. BUt as we all should be awared of, the overall real estate prices will decrease in the next few years as interest rates go up and many people will have problems paying mortgages for their primary residences. So prices in Morocco can only stay stable or decrease in the next 2-3 years. I do not care what company invest in Morocco, they are taking advantage of uninformed people. Look at USA where people are now having a dissastrous awakening...

I guess you know very well about Saidia investment.

Well, you will see. I backed my confidence by selling the properties I had and now waiting for the prices to lower in some markets. 6% interest rate is OK for the money I have in bank. In 1-2 years I shall buy again. BUt, as I said before, if one buys a property in MOrocco to hold for a longer period, then it is an excellent oportunity to have a beachfront property in Saidia. They are not making anymore beachfront land.

Better deal? Florida, Arizona or California in about 2-3 years, after the biggest price crash one can imagine. Yous house in Saidia will sell for 1/2 price by then.

>Property investors on this forum are not intending to sell their Moroccan or Cape Verde property to locals at a later date. Nobody will have available money to buy overpriced properties in MOrocco or other developing country in the near future (they will, but in say 10 years from now). Besides, investing in property will not be so popular in the next years. BUt if someone bought the house in MOrocoo or Cape Verde for personal use, then it is a great buy as beach front properties are difficult to find these days.

>Example "Who would be so stupid to pay same prices for an apartment in Spain or one in Morocoo?" >This is just plain rude given the thread is full of people saying they have bought. And you know what I am that stupid too. It is not rude at all. The beach front in Spain is now more than 150000 Euros, the one in Morocco is 75000 Euro. At this prices Morocco definitily is attractive and this is the reason why Fadesa could ask that incredibly high amount of money for a 1 bedroom in MOrocco. The prices in Spain won't go any higher so I do not expect the ones in MOrocco to go higher. The prices in both countries might grow with inflation but this does not offer any profit to investors.

>Strange question. Most of these countries will likely see increases in house prices for some time to come. I do not think it is strange at all. Who buys in Egypt, MOrocco or Cape Verde? People that use the equity from their UK or EU properties. If the interest rate goes up , as it is expected in the next year, the borrowing will be much more difficult. People from Egypt, MOrocco do not have any money to purchase properties In Spain prices will half in the next 2-3 years after the Euribor will reach 5%-6%. The market will be swamped with properties in Spain. After all the mess will be cleaned up, then a healthy rise of preices might start in Spain. BUt I think USA will crash the hardest, looking forward to buying an apartment in Reno or South Lake Tahoe.

>Cape Verde isn't without its risks. Being close to hurricane path, having poor infrastructure and fairly poor construction standards spring to mind. I know it has bad everything, but I would say it offers something a bit different from other places in Europe. This means a year-round place to visit, warm wather, etc. Morocco does not offer anything different as compared to Spain, Greece or Cyprus. Except the big risks, very bad infrastructure and extreme poverty, which cannot be really points of attractions.