The term "Buy-to-Let" means simply the purchase and ownership of a property through normal procedure.
Once completed the owner seeks to rent this property for a regular
income exceeding annual mortgage repayments.
The "Buy to Let" market in Morocco is expected to grow rapidly in line
with the Vision 2010 project launched by King Mohammed VI and the UAE.
This project is designed to improve the infrastructure, leisure
utilities and other aspects all aimed at drastically increasing
tourism. The target of the Vision 2010 is to increase the number of
visitors to Morocco by 10 Million per year.
Part of this project is to encourage residential development which is
currently underway with some fabulous 5 star developments being
constructed. The huge increase in tourists will of course create a
proportional requirement for accomodation. This is an excellent
opportunity for "Buy to Let" investors to enter an emerging market at a
time when purchase prices are at a low safe in the knowledge that a
multi Billion dollar project is underway to generate vast volumes of
tourists requiring accomodation and providing you with a comfortable
rental income.
Although priced very reasonably Morocco property is being constructed
with luxury in mind and already attracting the rich and famous. The
harbours being constructed under the development program are creating a
new hot spot for the financially elite. For the "Buy to let" investor
this too is excellent news as a 5 star luxury environment helps to keep
rental yields to a maximum.
"Buy to Let" Potential in Morocco
The rental market in Morocco is certainly more advanced than most
emerging markets. It is noted that 85% occupancy is currently very
common during the high season months and this figure is set to increase
as Vision 2010 drives tourists to the Moroccan resorts faster than
property can be built to accomodate them.
The goal of any "Buy to Let" investor is to cover any mortgage payments
and generate a secondary income stream from their property investment.
Morocco looks to be a great location to deploy this strategy with
investors aiming to cover all mortgage payments and bills for the year
with rental income generated from the high season months alone (4
months, July - September). As a guideline only, its expected that
during this high season period, rental from a 2 bed apartment costing
€100,000 should produce rental returns of €2,000 per month or more for
the investor.
Morrocan Property Rental Market
In Morocco "Buy to let" investments will certainly favour the short
term strategy due to the luxury style of the developments and the huge
influx of expected tourists. However some investors may decide to rent
at lower rates aimed at the international workforce that have
re-located to service the increasing tourist industry.
The "Buy to Let" Strategy is not ideal for EVERY investor and it is
essential that property for this strategy is chosen wisely as it needs
to be a rentable property in a popular location to allow the investor
to maximize income from the Investment. Even in a very busy market
there is still competition and to maximize occupancy rates its vital
that your selection of location, property, unit and monthly rental
charge will directly effect occupancy and in turn your rental income.
The other benefit from this type of Investment is that during the time
this property is being rented and earning the Investor an income and
acting as a holiday home it is still appreciating in value at one of
the fastest rates available. All in all the "Buy to Let" Investment
model is a sound investment decision and Morocco is currently an ideal
location to deploy this strategy.
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