Coastal or Inland?

Shawaz

It seems that in Morocco there is a huge trend at the moment for EU residents to look at investing in one of the Azure projects or in one of the many coastal resorts.

However, according to the tourism and housing department the country has a shortfall in housing between what is built and what is required by the market. In fact the number is a staggering 45,000 homes of some sort or another per year!! This has really got me thinking and somehow, I feel there is a real investment opportunity here. I know the country is relatively poor and a lot of people don't own their own homes, but it looks like the government are now offering interest free loans and gurantted mortgages to locals. If this is true, then perhaps the best investments are more inland in the towns, cities where the locals would prefer to live and where there will be a resale and a rental market for sure. Can anyone from Morocco shed more light on this issue?

Also, if one does invest in a costal resort, I’m sure the resale is likely to be by another EU resident, not a local… is this true or not?

camel

Sorry, to dampen your spirits. Once the local finds out that their landlord is some loaded European ( A perception that they have ) You wil not get your rent and going to the courts you will have no chance as this could take years and you have a sitting tenants on your hands.

Due to lack of infrastructure in the hinterland your propety will deteriote very quickly and the tenants my bring to live with him his/hert long lost cousins.

The above problem is not only in Morocco but a common problem in all third world Country. As an excample in Poland you can evit a tenant during the months of November to March 07 or when the average tempreture is certain degrees below 0.

The Polish info is thrown in for good measure.

moroccobound

Also ....
as long as your getting your monthly rent, you can never evict the tenant, so he could be infact paying you the same rent forever with no chance of getting a raise or a new tenant who can//will pay more rent.

The law is on the side of the tenant, NOT on the landlord's.

fkdev

Hi all,
This problem is true in Morocco,BUT, you have to know that when the letting is delegated to a professionnal company specialized in Property management, you have a selection of tenants before and the professional knows how to use the exact laws to avoid these kind of problems. Moreover, Touristic and resort areas are much different from other places.
Clauses in the contract should be clear in the case of :
rent increase, when you want to re-rent your property, use it for your self or just letting it empty.
There is a big difference between a contract written by a professional and a standard contract bought from any store.
regards,
KM