IPIN Guaranteed Rental Investment

Fantastic rental investment opportunity. Fully furnished villas with a 9 year rental guarantee starting at 7% per annum, with rental yields increasing by 2% every year! Personal usage also available.

IPIN Guaranteed Rental Investment Overview

IPIN has secured a number of units on this meticulously thought out investment opportunity.   The developer has proved similar investment models to be highly successful in France and Morocco, and confidently seeks to do the same with Salama Valley 3.

The Investment

• 7% guaranteed rental for 9 years
• Guaranteed rental backed by the giant corporation AON Insurance
• Guaranteed annual increase on the rental return of 2%
• No income tax on the rental income for the first 3 years
• Fully furnished turn-key villas
• 70% finance available against purchase price (subject to status)
• Attractive payment terms of 30/70
• 10 year construction guarantee
• Development strategically located and built by an experienced developer
• Bank completion guarantee with all properties

The Exit Strategies

• To achieve the highest returns on this investment, it would be advisable to view this as a mid to long term investment
• After the initial 9 year term it is possible for owners to renew their rental management contract, though this will not be under the previous guaranteed terms
  
  

The Security

As part of IPIN's due diligence process, this project has undergone initial legal searches by an independent law firm.

• Full licenses have been granted for this project
• The proposed draft of the Private Purchase Contract has been examined and it has been certified that all necessary requirements are contained therein
• Company registration documents have been verified
• Land title confirmation has been confirmed
  
• Buyers will receive a completion guarantee from the bank upon payment of the deposit
  

The Rental Management

• In EVERY instance, the 9 year rental management contract is built into the contract
  
• Owners will have a 2 week personal occupancy allowance per annum either in their own, or an identical villa, depending upon availability
  
• Owners have the option to use their 2 week allowance in another resort. Details will be available closer to completion
  
• The residence will accommodate local and international tourists on a daily, weekly or monthly basis
• Owners will receive 7% net of their investment
• An increase of 2% p.a. will be pegged to the rental return
  
• The management company will equip and furnish the property to a high standard
  

Within the framework of its management, the operator ensures its customers the facility of hotel-style services:

• 24 hour concierge
  
• Daily cleaning services, with supply of linen
• Provision of all staff

If you are not an IPIN member, please join now for free!

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Further Details

Salama Valley 3 is designed as a holiday resort, with a main reception located at the entrance and villa suites acting as hotel-style accommodation.

The Resort

The project comprises 48 two bedroom Moroccan-style villas available in two designs, and built to high specifications.

It features a club house to receive guests, with a hotel-style entrance, as well as golf buggies to get around within the development.

The Facilities

Within the Ksar Ahmar Club House:

• Hammam (Arab bath)
  
• Massage rooms
• Lounge
• Reception
• Restaurants and bar
• Swimming pool
• Wading pool for children (partly heated in winter months)
• 2 Tennis courts
  

Other facilities:

• Reception office
• 24/7 security guard office
• Additional swimming pools
• Two swimming pools
  
• Maintenance and management of common areas ( swimming pool, green zones, shops)

The Units

48 two bedroom villas of 81m2 to 120m2.

There will be 28 'Type 1' villas:

• Plot size of 200 m2
• Interior of 81 m2
• Priced at 169,000 EUR
• Gardens and terraces
• Fireplace
  

There will be 20 'Type 2' villas:

• Plot size of 280 m2
• Interior of 120 m2
• Priced at 239,000 EUR
• Gardens and terraces
• Fireplace
  

The Furniture Package - each villa comes entirely furnished

Living-room/dining room

• Wooden dining table with 4 chairs
• 2 seat sofa and 2 individual armchairs
• Dark wood coffee table
• 2 door chest with drawer
• Moroccan mirror
• Wall plate, lights and mural engravings

Bedrooms

• Double bed, mural, lights, mirror, wall cupboards or wall plates

Kitchen

• Crockery, silverware and kitchen utensils for 4 people

Miscellaneous

• Garden utensils, broom and vacuum cleaner

The Build Specifications

(Please request a detailed list from your IPIN Adviser)

The Comparables

Development	Area	Guaranteed Rental	Fitted Kitchen/Bath	Eur Price From	From Size Internal m2	Average Price  per m2(internal&50%external)	Fully Furnished
2 bed Salama Valley 3	Marrakech	yes	yes	169,000	81	1,198	yes
2 bed Atlas Mountains Pavilion	Marrakech	no	yes	156,730	83	1,624	no

The Rental Projections

Below are two tables giving a breakdown of the rental projections for both villa types. 

The calculations take in to consideration the 2% p.a. increase pegged to the rental return, rental income tax and the corresponding additional government tax discount.

* This is based on the current average mortgage interest rate per annum in Morocco of 5% as of July 2008
** This calculation is based on 40% rental income tax, minus 1,282 EUR (an additional Moroccan government deduction allowance)

***A 1 EUR = 11 Dirhams (MAD) has been used for these calculations.

N.B: Please note that the figures quoted are based on income group and their respective tax brackets. These are current figures for July 2008. Always consult with a professional financial analyst for actual figures.

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If you are not registered as an IPIN member, in order to view further details about this outstanding investment opportunity you should register for free to become an IPIN Member.

Some benefits of IPIN membership:

• 100% FREE to join
• Due Diligence on all projects and Indepedent legal reports
• Instant access to vetted investment opportunities
• Low Money Down Investments, Invest with just £4,000, €6,000 or $8,000 approx. figures
• Projects Offering 8% Guaranteed Rental
• Deal directly with the developers
• Free consultations with expert IPIN portfolio advisors
• Access to pre-release developments
• Dedicated Investment Support Team
• Access to land/development project consultancy services